corona brewery nava The Nava brewing and bottling plant.

Constellation to invest $1bn in Nava brewery

Brewer of Corona and related products wants to double its market share in U.S.

The brewery in Coahuila that makes Corona and related brands of beer is about to become a whole lot bigger through a US $1 billion investment by its owner, Constellation Brands.

The factory located in Nava is already the largest of its kind in the world with annual capacity of 10 million hectoliters. The expansion will increase that output to 25 million. All of its products, which include Negra Modelo and Modelo Especial as well as Corona, are made under licence from brewer Grupo Modelo and exported to the United States.

Constellation spokesman Edgar Guillaumin said the firm is pushing “premium Mexican brands” in the U.S. market in response to the growth of other imported beer and craft beer.

The Nava investment is expected to help bump Constellation’s share in the U.S. beer market from 7% to 14% by 2017.

The company, which owns the rights to import and distribute Grupo Modelo products in the U.S., bought the five-year-old Nava brewery from Grupo Modelo in 2013. Last December it completed the purchase of an adjacent glass factory from Grupo Modelo owner AB-InBEV, along with warehousing, land and rail infrastructure.

The Nava brewery and bottling plant are situated on 334 hectares of land about 21 kilometers from the border town of Piedras Negras. Its advantages include the availability of good water, proximity to the border and the U.S. beer market and good transportation and power infrastructure.

Mexico’s second-largest brewer announced its own expansion plans on March 10, a 7.5-billion-peso investment in a new plant in Meoqui, Chihuahua. Cuauhtémoc Moctezuma Heineken will produce 5 million hectoliters of beer a year at the new facility.

Sources: El Financiero (sp), Geo-Mexico (en)

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