Beer, star product of the Mexican economy
Mexico has stood out for being an export power, where one of the country’s star products has been beer; which for years has achieved sustained percentage growth.
During the pandemic, many sectors were affected and Mexico’s beer exports suffered a small setback that today has remained in the past since the Mexican beer industry is the largest exporter, which its recovery was almost immediate.
Some of the factors that have made this sector so successful are the following:
Beer a motor for Tax Collection
Undoubtedly, being one of the star products of our country, it generates millions of taxes in collection. Which has been growing as the market expands in Mexico. IEPS collection for beer and soft drinks went from 20,249 million pesos in 2010 to 41,851 million pesos in 2019.
In 2020, the IEPS collection for beer and soft drinks was 34,957 million pesos, with a small decrease.
Beer & its national production
In the same way, in his production, he had a small setback that was reflected in the following numbers. In 2020, beer production was 119 million hectoliters, which represents an annual decrease of -4.7% compared to the previous year.
Beer in foreign trade terms
Now, in exports we have the following data. In 2020, beer exports were 38 million hectoliters, representing an annual decrease of -6 percent.
Secondly. In 2020, the import of beer was 0.4 million hectoliters, representing an annual decrease of -65 percent.
In 2020, the trade balance of the beer agribusiness was with a surplus of 4.645 million dollars. Although beer remained the main agri-food export product of Mexico, said surplus that was obtained presented a decrease.
Even so, it is one of the few countries that has maintained a surplus for years which speaks of the high quality of the product produced in Mexico.
Beer as Foreign Direct Investment
Thanks to the good performance of the industry in previous years, they allowed large companies to invest in our country, leaving great economic waste, which allowed the recovery to take place immediately. Since the demand increased at the end of the social confinement and Mexico was ready for large-scale productions. Only in 2015 to 2019, 86,000 million pesos were invested and three new plants were built in Hidalgo, Yucatán, Chihuahua. From one of the large companies that produce in our country. In addition, despite bad weather and in 2020, investment in the sector was not stopped since last year more than 11,000 million pesos were invested in the sector.
Although beer production is dominated by two large conglomerates, Cervecería Modelo / Grupo Modelo and Cervecería Cuauhtémoc-Moctezuma / FEMSA, producers of craft beer in Mexico, they have grown exponentially in recent years, offering important opportunities to investors from around the world. . For its part, one of the investments that most have us in expectation is that of the company Constellation Brands, a success story for Mexico since attracting a company of the size and quality of the brand speaks well of how attractive our country is. for this sector. Constellation Brands is looking for the ideal place for investment in our country, the American brewery) will build a new brewery somewhere in the southeast of the country. The state of Veracruz had been mentioned, where it seeks to attract said investment that will bring development and sources of employment for the region, this after the cancellation of the plant in Mexicali. Also in recent days other states such as Tabasco, among others, have been mentioned.
Industry-leading Constellation brews several Mexican beer brands, including Corona and Pacifico, exclusively for the US market, which was a factor that made the original border location logistically attractive. Where the southeast of the country is currently being contemplated.
Some of the successes to continue seeing Mexico as a recipient country of investment by the brand are the following:
- With sustained growth, the Corona Extra and Modelo Especial brands continue to be the preferred and best-selling imported beers in the United States.
- In the North American market, millennials represent a great growth opportunity for Constellation Brands premium brands.
Constellation Brands has two breweries in Mexico: Nava, Coahuila and Ciudad Obregón. These sites produce iconic Mexican brands such as Corona, Corona Light, Modelo, Negra Modelo, Pacífico, among others; Of which, in 2013 the company acquired the rights to produce and market Grupo Modelo’s brands exclusively in the United States, which it took full advantage of thanks to its experience and its strategies to market the United States. With these investments planned for this year and those already made in previous years, Constellation Brands consolidates itself as a leader in the industry with a great forecast for growth and dominance in the US market. Without a doubt, attracting investment from large companies such as Constallation Brans will generate positive conditions for the brewery industry to continue being the star in Mexican exports.
Here are some important facts to understand the magnitude and importance of continuing to attract investment from Constellation Brands:
- The actions of this great company are guided by means of diverse values focused on benefiting people, integrity, quality, entrepreneurial spirit and the consumer. This has allowed it to become a responsible company committed to the efficient and sustainable use of the resources it uses, such as water or energy.
- Constellation Brands received a high score on the 2020 Corporate Equality Index (CEI). In addition, it was named “Best Place to Work for LGBTTTI equality.”
- The company was honored to receive the award in recognition of its Shopper-First Shelf program under the company’s Think Leadership Connect platform.
- Since 2013, the company has made a strong commitment to Mexico, and from this year to date it has been in charge of promoting various initiatives that have a positive impact on the communities and areas where the company and its brands have a presence. For this reason, it is important to be able to define the investment location of the new plant to be built.
- Constellation Brands is a company that is based on agriculture and that is why it seeks to minimize its environmental impact.
- During this pandemic, the brand developed action guides to be implemented in each of the localities where it has a presence. With this, they seek to help mitigate contagions in the company and in the communities, in addition to ensuring operational continuity in each of the breweries. This guarantees that it has protocols to be able to attend to new needs and to be able to adapt to change.
For Mexico, continuing to be a country that attracts companies like Constallation Brands is vital for the beer industry.
The beer industry is so important to Mexico as it benefits many sectors which makes it one of the most cared for industries in the country.
- Agriculture: Agriculture is the pillar where the value chain of the Mexican beer agribusiness begins. More than 5,000 farming families cultivate around 300,000 hectares of barley, which is used to make beer. The economic spill begins from the first step of production in our country to its final distribution.
- Value chain in the distribution of supplies: The value chain of the Mexican beer agribusiness generates more than 700,000 direct and indirect jobs, among which are farmers, malters, bottlers and service companies such as restaurants, hotels, etc.
- National economic integration: The Mexican beer agroindustry has a direct impact on 168 economic activities. This means that it has an important level of integration with the national industry. In addition, of the total inputs required for beer production, 73% are national, unlike the average for manufacturing industries in which national inputs represent 42.1%. For this reason, it is a product that leaves a great economic spill in our country.
Mexico is known for its large beer industry, with a large number of brands exporting to different countries around the world. Today, Mexico’s beer industry earns more than $ 23 billion in annual revenue, and has more than 13,000 employees nationwide.
The beer industry in Mexico has everything to continue growing, it has the infrastructure, the raw material and the experience in the sector, coupled with the geographical position of the country as well as its free trade agreements that allow it to easily reach To the markets that most demand this product, they generate the perfect conditions for constant growth, which will bring innovation for its production, to reduce costs and above all to make the logistics chain the tool to make processes more efficient and reduction cost.