Mexico: Constellation Brands to dismantle 10m hl brewery within two years

Constellation Brands has two years time to dismantle its almost finished 10 million hl brewery in Mexicali, Mexico, the Mexican Ministry of Environment and Natural Resources (Semarnat) said today. The day before, federal, state, and municipal authorities met with representatives of the brewing company to discuss the way how to execute the outcome of the public vote in March 2020, when 76.1 percent of the participants voted against the planned brewery of Constellation Brands in Mexicali. (, 24.3.2020)

The USD 1.5 billion project was announced in 2016 and had already been completed to 65 percent at that time. The decision to build a new brewery in this region had been very long controversial because it was feared that the brewery would deprive the people of the dry region in the state of Baja California of urgently needed water.

The Semarnat said it will monitor the environmental restoration process that applies in accordance with current legislation. Blanca Alicia Mendoza Vera, the Federal Attorney for Environmental Protection (Profepa), “will continue to make supervisory visits to the plant facilities Constellation Brands so that the legality is fulfilled,” the Semarnat said.

“On Monday, March 8, the general public will be informed of the dismantling process, where the special commission will give timely information and follow-up. On March 18, the company will begin with the first phase of orderly exit,” the Semarnat added.

Shortly after the public vote Mexico’s President López Obrador met with representatives of Constellation Brandsto talk about the future of the Mexicali plant. On April 1st 2020, the president said that the American brewer accepted the outcome of a vote. (, 1.4.2020)

Mexico’s President López Obrador is a clear opponent of the brewery in Mexicali. During several occasions he reiterated that the vote of the people has to be followed besides the fact that that the vote was not binding as not sufficient people participated in the survey. He favors a new location of the brewery in the south of the country he was born and raised up because this region has sufficient water. However, as the new brewery is destined for the delivery of the US market, Constellation Brands opposes such a location because of logistics reasons.  (, 29.11.2020)

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