Facts you didn’t know about the Mexican Beer Industry

Mexico is a country that is well known for its tourist destinations, delicious cuisine, and economic growth. For instance, it is considered to be the world’s leading beer exporter. It exported more beer than Germany, the Netherlands, and Belgium.

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In detail, during 2020, the worldwide value of beer exports from Belgium was US$2,163M, from The Netherlands US$2,048M, USA US$5,970M, from France $US1,047M and Italy US$674M.

In detail, during 2020, the worldwide value of beer exports from Belgium were US$2,163M, from The Netherlands US$2,048M, USA US$5,970M, France $US1,047M and Italy US$674M.

By 2021 the total trade of Mexican beers was worth US$5,657M, and the main destinations were the US, China, Hong Kong, Guatemala, and Australia. As for April 2022, the exports of beer reached an all-time high with monthly sales equivalent to US$588M.

Despite the massive exports from Mexico, it is impressive to point out facts such as the closed market, controlled by two massive beer companies that are controlled by foreign parent companies.

The Mexican beer industry is mostly a duopoly

We are all familiar with the concept of monopoly. Not necessarily the board game. A monopoly is where a market is controlled by a sole provider, therefore, it has no competence and it is able to set its prices since it manages the offer in the sight of the demand.

The case in Mexico is slightly similar, the market is controlled not by one but by two big companies. These are Grupo Modelo and Cervecería Cuauhtémoc Moctezuma.

Grupo Modelo

This Mexican beer company was founded in Mexico City in 1925. Its most famous beer is Corona.

This company is controlled by the Belgian Company Anheuser-Busch InBev that in 2013 bought Grupo Modelo for 20 billion dollars.

In Mexico the group produces 17 beers, some of which are:

Cerveza Corona Extra, León, Modelo Especial, Negra Modelo, Estrella, Montejo, Pacífico, Victoria, Barrilito, Cucapá, Tijuana y Bocanegra.

Cervecería Cuauhtémoc – Moctezuma

This company was founded in 1890. In 2010, Heineken bought it for 7 thousand 347 million US dollars.

In Mexico, the group produces, among others:

– Cerveza Indio, Dos Equis, Carta Blanca, Tecate, Bohemia, Superior, Cerveza Sol, Amstel Ultra, Canilla and Heineken.

Learn more here about Luna Loca, a local and growing Mexican brewery that is embarking on foreign markets.

The truth about the production of some “Mexican beers” in Europe

The truth is that the expensive beers you buy at the supermarket, grocery store, bar, or nightclub, are not made in Mexico. They are actually mostly produced in Europe under the license of Grupo Modelo and Grupo Moctezuma.

You can find proof of this whenever you go to your local grocery store… Look for a Corona beer and carefully read the label. It should state “brewed under license from”.

This situation means that the Mexican company that owns the patents of the trademark and the recipes of the beers, grants its permission to the European breweries to use both the brand and the recipes. As the European company does that, it has to pay for the use of such a license. For Cervecería Modelo, that is an income called royalties.

Let’s not forget that we are talking about a series of operations that are executed within the same international group. This is known as a corporation, a business’ structure compromising parent companies and subsidiaries. Not only do these operations reduce shipping costs, but also have international tax advantages within the corporation.

Due to the massive inference of Mexican beer in the international markets, there is great awareness, a factor that makes it easier to sell.

On the other hand, if you are passionate about beer, we would invite you to try the beer innovations from new breweries that, just like Mexican cuisine, synthesize a whole culture into your tastebuds.

Sources

Infobae: Quiénes son los millonarios de la cerveza en México.

Wikipedia: Grupo Modelo

Beer Connoisseur: 7 largest and most successful beer companies around the world.

Data Mexico: Beer