Grupo Modelo's Zacatecas brewery The company's Zacatecas brewery.grupo modelo

Modelo announces brewery in Mérida

Competitor Cuauhtémoc Moctezuma currently dominates that region of the country

Beer’s not going out of fashion any time soon in the eyes of the world’s biggest brewer.

Grupo Modelo, makers of the iconic Mexican beer Corona, has announced construction of a new brewery in Mérida, Yucatán, whose initial capacity will be 5 million hectoliters annually. (That’s equivalent to about 122 million cases of a dozen bottles.)

In the medium term, though, capacity will increase to 15 million hectoliters.

The new plant will be the eighth for the company, which is owned by the Belgian firm Anheuser-Busch InBev. It will serve the regional, Yucatán peninsula market, which represents about 10-15% of total beer sales in Mexico, as well as exports.

Although Modelo has about 60% of the country’s total market share, competitor Cuauhtémoc Moctezuma leads the way on the Yucatán peninsula.

The new plant will cost 2.2 billion pesos, or about US $150 million, and will create 400 new direct jobs and an estimated 10 indirect. Construction is set to begin in the middle of this year, with completion expected by the end of 2016.

Last week the company announced it will be self-sufficient in energy use by the year 2017. In 2013 8.5% of the energy it consumed came from biogas while currently 10% of all Grupo Modelo’s electricity needs are provided by a windfarm in the Isthmus of Tehuantepec in Oaxaca.

By the end of 2014 more than 90% of energy from non-renewable resources came from natural gas.

The plant in Zacatecas, the company’s largest with daily production of 20 million bottles, is expected to be the first to be completely self-sufficient.

Source: El Financiero (sp)

Reader forum

The forum is available to logged-in subscribers only.