image

Nov 2016 e-magazine

08.11.2016
Malta's Simonds Farsons Cisk targets international growth ...
read more
image

Craft brewing: Italy’s Le Baladin

08.11.2016
One of the original rock stars of Italian craft, has big ambitions ...
read more

More Features >

image

Three buses

04.02.2016
Genuine marketing innovations are rare - here's three to start '16...
read more
image

20:20 vision: take the over

14.12.2015
Craft beer growth is unstoppable unless definition concerns trip it up...
read more

More Opinions >

Home | News | Breweries | Constellation buys Mex brewery

Constellation buys Mex brewery

Font size: Decrease font Enlarge font
image
Constellation changes: buy has Mexicali capacity cut

Obregon acquired from Modelo for US $600m

Constellation Brands has added a third brewery to its production network. It announced at the end of October that it had agreed the US $600 million purchase of Grupo Modelo’s Obregon brewery, a deal which has a knock-on effect for its Mexicali greenfield project.

Located on Mexico’s west coast in the state of Sonora, Obregon has a capacity of four million hectolitres. The majority of its production is currently satisfying the interim supply agreement between Modelo parent company Anheuser-Busch InBev and Constellation Brands. As such a smooth transition is anticipated, a welcome development during the continued expansion of the Nava (Piedras Negras) brewery, which is now planned to have a capacity of 27.5mhl, and the buildout of the Mexicali brewery.

With the acquisition the greenfield Mexicali project is to be scaled back from its original 10mhl target to 5mhl, with the potential for it to be scaled up to 20mhl at as yet unspecified future dates. The initial 5mhl brewery is expected to begin operations in December 2019.

Constellation Brands president and CEO Rob Sands commented, "We believe this is the right strategy to provide near-term capacity and greater flexibility to support our growth and innovation plans, while allowing for the buildout of our Mexicali brewery over an extended time period."

The transaction is subject to US and Mexican regulatory approvals.

 

Rate this article
1.00