Investment Details and Focus Areas
Grupo Modelo, a prominent Mexican cerveceria group, announced an investment of over $3.6 billion for the period 2025-2027 to modernize its breweries and boost production in Mexico. The Vice President of Corporate Affairs, Raúl Escalante Martínez, explained that this investment aligns with the Plan México and focuses on five key areas, including strengthening local procurement and reducing water consumption.
Investment Distribution
The investments will be distributed across the country, with particular attention to states housing Grupo Modelo’s plants such as Zacatecas, Ciudad de México, Coahuila, Tuxtepec in Oaxaca, and Hunucmá in Yucatán.
Grupo Modelo’s Commitment to Mexico
Escalante Martínez emphasized, “We are with Mexico like good friends, in the good times and not-so-good times… Today, Madam President, we come to renew our commitment to the country.” He further stated that Mexico is their primary market, and being in Mexico is a privilege, allowing them to tap into abundant talent and benefit from the positive economic performance.
Sustainability Initiatives
The investment will modernize cervecerías and factories to reduce water consumption in beer production. In the last decade, Grupo Modelo has already reduced water usage by 30% and ceded 20 million cubic meters of concessions to the National Water Commission (CONAGUA).
Moreover, Grupo Modelo will promote circular economy by increasing the use of returnable packaging and glass recycling programs. They will also support 300,000 small retailers with technology, credits, and infrastructure improvements like energy-efficient refrigerators and new facades.
The company will reinforce local procurement, as 70% of their inputs are currently national. Escalante Martínez highlighted the potential for further increasing this percentage.
Community and Cultural Support
Grupo Modelo will sponsor cultural and sports events, including festivals, fairs, concerts, and major tournaments like the World Cup and Olympics.
Integration with ‘Hecho en México’ Program
Grupo Modelo was the first to join the relaunched ‘Hecho en México’ program, now representing approximately 1% of the national Gross Domestic Product (GDP).
At 100 years old, Grupo Modelo has become an “iconic Mexican company,” contributing to the country’s progress. They employ around 30,000 people and offer products that have been part of Mexican generations’ gatherings and celebrations.
From their first brewery opening in Mexico City, Grupo Modelo has successfully brought representative Mexican brands like Corona, Pacífico, and Negra Modelo to over 180 countries.
Their value chain spans from the field to corner stores, supporting families nationwide.
Impact of US Tariffs
Escalante Martínez mentioned that the tariffs imposed by the US on Mexican imports have not significantly impacted Grupo Modelo. He stated, “We are not highly affected today,” noting that they sold their US operations in 2013 to a competitor, resulting in minimal current exports.
Recognition from Mexico City’s President
President Claudia Sheinbaum thanked Grupo Modelo for their investment in Mexico and support during her tenure as Mexico City’s Governor. She recalled that the group helped remodel the La Pastora Hospital in Gustavo A. Madero, which was built previously but not operational due to issues.
Thanks to Grupo Modelo’s donation, the hospital became operational as a COVID hospital. Now, IMSS Bienestar manages its operations, and it will transform into a breast cancer care center.
Key Questions and Answers
- What is the total investment Grupo Modelo plans for Mexico between 2025-2027? Grupo Modelo plans to invest over $3.6 billion in Mexico between 2025-2027.
- What are the five key areas of focus for this investment? The five key areas are modernizing breweries, reducing water consumption, strengthening local procurement, promoting circular economy, and supporting small retailers.
- How has Grupo Modelo contributed to Mexico’s progress? Grupo Modelo has been an iconic Mexican company, contributing to the country’s progress through job creation, tapping into local talent, and offering popular Mexican beer brands worldwide.
- What is Grupo Modelo’s stance on US tariffs? Grupo Modelo has stated that the tariffs imposed by the US on Mexican imports have not significantly impacted their operations.
- How has Grupo Modelo supported the Mexico City community? Grupo Modelo helped remodel the La Pastora Hospital in Mexico City, which is now operational as a breast cancer care center.
