Mexico: Grupo Modelo increases bottle production capacity by 57%

Grupo Modelo, beer market leader in Mexico and fully owned by AB InBev since 2013, is investing MXN 3.08 billion pesos (USD 154 million) in the expansion of its glass factory in Tierra Blanca, Veracruz, in the Southeast region of Mexico.

The project, expected to come online in March 2022, will increase production capacity in the factory from 3.5 million to 5.5 million bottles a day. This will create more than 200 new jobs and 1,600 temporary jobs during the construction phase, and also provide materials to supply AB InBev’s operations in Colombia, Ecuador and Peru. Currently, the factory employs 570 people with an annual production of 900 million glass bottles. With an increase in daily production by 57%, the plant will be able to produce about 1.4 billion bottles a year after the increase.

"Having economic reactivation as a priority, it is an honor to announce, along with the secretary of Economy and the governor of Veracruz, this investment, which is a reflection of our commitment to the Southeast region of the country. Grupo Modelo remains committed to Mexico and the Mexican people,” said Cassiano De Stefano, president of Grupo Modelo.

The announcement was made during a joint press conference on June 30 with a representative from the Mexican Ministry of Economy, Tatiana Clouthier, and the governor of Veracruz, Cuitlahuac Garcia Jimenez.

At the event, Tatiana Clouthier praised Grupo Modelo for its trust in the country and for the continued support in creating greater and better-paid jobs in the communities where we operate. Cuitlahuac Garcia Jimenez recognized the importance of this project in supporting the local economic recovery. “We believe these investments generate jobs, support economic recovery, and strengthen the framework of the new relations between company, employees, and governments, while we each contribute to our own obligations,” he explained.

Grupo Modelo owns 11 breweries, 10,000 Modelorama stores - mostly small, family-run stores with strong connections to their neighborhoods - and 10 factories for vertical operations such as malting facilities, in addition to container, cap and glass factories.

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