Brokers

People who know Mexico will know a few things about beer in this country:

• There are 2 beer companies (Modelo & Moctezuma)
• They each have about 10 different brands
• Stores, bars and restaurants will usually sell only one company’s beer

The last point is largely due to incentives/pressure from each of the two companies on bars and small stores to sell only their products. According to a recent article from the Wall Street Journal, this might change soon if Mexico’s government decides that this breaks anti-trust laws:

“We want the consumer to be the one able to choose, instead of the restaurant owner imposing a product for economic benefits or the store owner because they helped him secure permits,” said Jaime Andreu, founder of Cervecería Primus, a Mexico City-based microbrewer that joined in the antitrust complaint. Mr. Andreu said roughly 95% of restaurants and bars in the country only serve either Modelo or Cuauhtémoc beers.

(Read the entire article here.)

The complaints seem to be coming from one international beer giant (SABMiller) and several microbrews in Mexico which are trying to get a foothold, but are meeting obstacles with bars and small shops that have exclusivity contracts with one of the “big two.”

Especially if the ruling goes against the exclusivity deals, now might be an ideal time to open a microbrewery in Mexico:

Mexico’s large, youthful population and expanding economy have beer executives convinced that beer consumption in the country is poised for greater growth. Every year, a million Mexicans reach drinking age.

 

In the north, annual beer consumption averages 100 liters per capita, on par with many heavy beer-drinking northern European countries, while in central Mexico consumption is closer to 35 liters, comparable to southern Europe.

– by Thomas Lloyd