Constellation Bets Big On Future Growth For Its Mexican BrewsJune 19, 2015
Constellation Brands is pouring $2 billion into its Mexican brewing operations to boost supply of its Corona, Modelo Especial, Pacifico and Victoria beer brands across the U.S. market. The outlay will help raise capacity at Constellation’s Nava, Mexico brewery from 10 million hectoliters to 25 million hectoliters (nearly 300 million cases) by the end of 2017, while also markedly expanding its corresponding glass plant. “We believe Mexican high-end beer will continue to grow and be a leading beer segment in the U.S. for years to come,” said Constellation president and CEO Rob Sands.
Constellation’s major investment south of the border comes as its Mexican portfolio extends its long run of rapid growth. Modelo Especial, an Impact “Hot Brand” for more than a decade, is still surging, with its volume—at 61 million (2.25-gallon) cases in 2014—up by roughly 70% over the last three years. Modelo Especial Chelada and Victoria also earned “Hot Brand” honors for their 2014 performances, depleting 2.6 million cases and 1.7 million cases respectively. Corona, meanwhile, remained far and away the U.S. market’s top imported beer brand at 107 million cases on a 4% rise last year, according to Impact Databank.
Subscribe to Shanken News Daily’s free Email Newsletter, delivered to your inbox each morning.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.