Thursday, June 20, 2024

Grupo Modelo and Millfoods to invest US $300 million in Guanajuato

Grupo Modelo and Millfoods are set to invest US $300 million in a new corn processing facility in the city of Salamanca, Guanajuato.

Economy Minister Raquel Buenrostro, Grupo Modelo VP Raúl Escalante, and Millfoods President Pilar Gutiérrez, announced on Thursday that the investment will go towards upgrading brewing infrastructure in the region.

Beer kegs
Modelo will use the corn for flavoring in the brewing process. (Elevate/Unsplash)

The new facility will generate more than 1,000 new jobs, and serve 20,000 local corn producers from across the Bajío region when it is completed in late 2024. It will primarily produce corn grits, an ingredient used in the brewing of beer, which is often used to create a smoother flavor profile – as well as milling wheat for animal feed.

“This announcement contributes to the good business environment [in the country]. Investment in Mexico is at an all-time high and is generating good jobs, which are the key to eliminating poverty and inequalities,” said Buenrostro. The minister also suggested the investment demonstrates the confidence of investors in the country, which has seen a wave of investment announcements this year.

Mayor of Salamanca, Julio César Prieto Gallardo, thanked Grupo Modelo and Millfoods for their investment in the city, highlighting the need for public-private partnerships in developing the Mexican economy.

Modelos’ Escalante announced that “At Grupo Modelo we have an unwavering commitment to Mexico. With this investment, we support Mexican producers who grow the grains with which we make our iconic beers to continue promoting the growth of the country’s agribusiness.” 

Investment in Mexico “is at an all-time high” according to Economy Minister Raquel Buenrostro (center, in black).(Millfoods/X)

The new mill will be one of the most technologically advanced corn processing facilities in Mexico, and is designed to minimize water usage throughout the production cycle. Modelo will also prioritize the use of locally-produced corn, rather than importing it from the United States as it has previously done. Millfoods has also pledged to avoid the use of genetically modified corn in its production processes.

Millfoods president Gutiérrez highlighted the sustainability of the project, noting “We are excited to be the operating investor of this project towards food self-sufficiency and the economic and social development of Mexico.” 

“We are committed to positioning our processes as benchmarks in the industry, working towards carbon neutral production and minimizing the use of water resources in our operations,” she continued.

Modelo became the top-selling beer brand in the United States in June.

With reports from Forbes México, Mexico Industry, El Economista

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