Dutch brewer Heineken N.V. announced on Wednesday the opening of a new brewery in Mexico. Located in Meoqui, Chihuahua State, it will be the company’s seventh brewery in the country.
At a cost of $500 million, the plant is said to be the biggest greenfield brewery in Heineken’s history, with a production capacity of 6 million hectoliters per year and will produce leading brands such as Tecate, Dos Equis and the Heineken brand for the Mexican market and for export.
Grupo Modelo, Mexico’s largest brewer and a subsidiary of Anheuser-Busch InBev has announced plans to construct a new brewery considered the world’s second largest at a cost of 14 billion Mexican pesos ($755 million). The brewery will be located in the city of Alpan, Hidalgo in central Mexico.
The construction of the brewery is expected to be completed by March 2019 and will have the capacity to produce nine million bottles of beer per day, according to Grupo Modelo Chief Executive, Mauricio Leyva.
Grupo Modelo, which produces beer brands such as Corona Extra, Pacifico, Modelo and Victoria among others, said that the construction of the brewery will create 3,000 jobs and “more than 1,200 direct permanent jobs during the operation phase.”
Mexico’s Tequila Regulatory Council (CRT) is preparing for a drawn-out legal battle against Heineken N.V. over what it alleges is the Dutch brewer’s use of the word “Tequila”, a protected name on its Desperados Lager beer when the brew does not contain the spirit.
“We cannot permit someone unscrupulously to affect tequila’s prestige,” said Ramon Gonzalez, CRT Director-General.
“Either they take the word tequila off it, or they put some tequila in”. If they refuse, “we’ll have no choice but to fight this in court,” he said.
Health advocates in Mexico are recommending the government double the tax on sugary drinks to curb rising obesity and at the same time raise revenue.
Supporters of a higher levy on sweetened beverages say that the 10% surcharge initially placed on fizzy drinks three years ago have had no effect on its consumption and industry sales.
Mexican government has taken in about $2.5bn in revenue since the surcharge was introduced, more than they had expected.
