Mexico: Constellation Brands to build 10 million hectolitre brewery

Mexico: Constellation Brands to build 10 million hectolitre brewery

Alcoholic drinks manufacturer Constellation Brands has announced that it is investing in a new 10 million hectolitre brewery in Mexico in addition to an expansion of its Nava brewery business.

The new brewery will be built in Mexicali, Mexico with the intention of being close to the US state of California, the company’s largest beer market. The facility is expected to scale production capacity to 20 million hectolitres in the future, and is scheduled to complete its first 5 million by the end of 2019.

Rob Sands, president and chief executive officer, Constellation Brands, said: "We are investing in infrastructure that will provide long-term flexibility and capacity needed to support the expected future growth of our high-end Mexican beer portfolio”.

“Our Mexican beer business continues to significantly outperform the U.S. beer market and is exceeding our sales volume and depletion expectations, driven by strong consumer demand”, he added. “We anticipate these capacity investments will equip us with the production necessary to continue to be a leader in the high-end segment of the U.S. beer market, which has consistently grown in the mid to high single digit range and is expected to continue to grow at these levels into the foreseeable future”.

In addition to the new plant in Mexicali, Constellation Brands is looking to expand capacity at its Nava brewery from 25 to 27.5 million hectolitres. The project is the result of an investment of around $250 million and is expected to be finished by early 2018.

Source: Constellation Brands