Mexico: Grupo Modelo to invest US $3.6 billion in renovating its Mexican plants

Grupo Modelo, Mexico’s top beer maker, said it plans to invest US $3.6 billion over the next three years to renovate its Mexican plants, fund recycling initiatives and finance local producers, Mexico News Daily reported on April 24.

Raúl Escalante, Modelo’s vice president of corporate affairs, made the announcement during President Claudia Sheinbaum’s Thursday morning press conference, further boosting Sheinbaum’s vision for economic growth contained in her Plan México.

Economy Minister Marcelo Ebrard said Grupo Modelo’s investment lifts overall funding under the Plan México umbrella to US $300 billion.

Sheinbaum expressed gratitude to Grupo Modelo while highlighting the investment’s ecological focus, which includes reducing water use in production and promoting the use of returnable packaging and glass recycling programs.

“In the past decade, we have reduced by 30% the amount of water required to produce our beer,” Escalante said. “This has allowed us to fully adhere to the national right to water accord, ceding 20 million cubic meters of water to the [National Water Commission].”

The brewer will provide funding and credits to the 300,000 shops that sell Modelo beer brands. “We intend to help our clients modernize by sharing technology and encouraging the purchase of more efficient refrigerators,” Escalante said.

Modelo also aims to sponsor music festivals and sporting events, thereby promoting what Escalante called “positive experiences for Mexicans.”

“We are with Mexico for better or for worse,” Escalante said. He added that although 70% of goods used in Modelo’s beermaking process are produced in Mexico, “there is considerable opportunity to improve that figure.”

Sheinbaum praised Modelo’s commitment to Mexico, recalling that, while she was mayor of Mexico City (2018-2023), the company provided funding early in the COVID pandemic to finish building a hospital that had been left incomplete by the previous administration.

“That hospital helped treat victims of the pandemic and now specializes in breast cancer treatment,” she said.

Grupo Modelo is the national leader in production, distribution and sales of beer in Mexico, including such top brands as Corona, Victoria and Pacífico. It employs nearly 30,000 at its 10 breweries, including two artisanal breweries and one experimental brewery.

Modelo also owns bottle-making factories and malt-processing plants, and produces plastic bottle caps. The company also produces and distributes bottled water via a strategic alliance with Nestlé Waters.

“Mexico is our principal market,” Escalante said, adding that Modelo has confidence in Mexico and its people, and will continue building in Mexico over the next six years.

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