Mexico: Heineken to Invest EUR 430 Million in New Brewery in Yucatán

Following Constellations Brands, Heineken becomes the second major brewing group to build a new brewery in Mexico.

Heineken Mexico is set to invest EUR 430 million in the creation of an additional brewing site in Yucatán, with the goal of expanding sustainable brewing practices and fostering community development, the company said today in a press release. This announcement took place in the presence of Raquel Buenrostro, Mexico's Secretary of Economy, and Mauricio Vila Dosal, the Constitutional Governor of Yucatán, alongside Guillaume Duverdier, the Managing Director of Heineken Mexico.

The construction of the brewery will occur in the Kanasín municipality, marking Heineken's inaugural brewery in the southeast region. Equipped with cutting-edge technology, this new facility is a significant addition to Heineken Mexico's operations, aimed at meeting the rising demand in the southeast and leveraging the region's strong road, rail, and port infrastructure.

In alignment with Heineken's global sustainability initiative, 'Brew a Better World,' this brewery will lead the way in implementing water processes unparalleled in the Mexican industry. It will integrate circular economy practices, ensuring water reuse through advanced treatment systems. Furthermore, the brewery's objective is to operate with minimal waste and harness renewable energy sources through state-of-the-art processes, equipment, and technology.

Heineken Mexico, presently employing over 18,000 individuals, operates across seven breweries and one malting plant in Mexico. The Kanasín brewery in Yucatán is expected to create more than 2,000 direct and indirect jobs, further enhancing its role in the local economy. Operations are scheduled to commence in 2026, delivering brands such as Tecate, Dos Equis, Indio, Bohemia, Amstel Ultra, and Sol, among others.

Guillaume Duverdier, Managing Director of Heineken Mexico, expressed, "We highly appreciate the collaborative efforts of federal and state governments in promoting regional development. We take pride in being a part of Mexico's history and connecting with our customers and consumers in Yucatán and the southeast, all while prioritizing environmental sustainability and the well-being of our people. We are dedicated to Mexico and have unwavering confidence in its future, remaining committed to creating memorable moments through our brand portfolio."

Dolf van den Brink, CEO & Chairman of the Executive Board at Heineken N.V., emphasized, "Mexico plays a pivotal role as one of the company's most important global markets. This investment holds strategic significance, designed to drive growth and seize the abundant opportunities presented by the Mexican market. We eagerly anticipate the ongoing partnership between Heineken and the people of Mexico, spanning over 132 years."

Heineken Mexico reaffirmed its strong trust in and long-term commitment to both Mexico and Yucatán. Guillaume Duverdier concluded, "This significant investment aligns perfectly with our sustainability strategy, 'Brew a Better World.' We are prepared to contribute to Yucatán's development by delivering a world-class brewery."

In the meantime, Constellation Brands new brewery in Veracruz in the South-East of Mexicois progressing in a timely manner. The company announced to build a new USD 1.3 billion brewery in December 2021 (inside.beer, 8.12.2021), after the government ordered the closure of a nearly completed USD 1.4 billion brewery in Mexicali near the U.S.-Mexico border (inside.beer, 24.3.2020) Construction started at the end of last year and first logistics tests will begin in the middle of next year.

Even Grupo Modelo, AB InBev's representative in Mexico, announced a significant investment last month. Teaming up with Millfoods, the brewing giant is set to invest a substantial USD 300 million in the establishment of a new corn processing facility dedicated to producing corn grits located in Salamanca, Guanajuato. (inside.beer, 17.8.2023)

As one can see, the Mexican beer market is very attractive for all major brewing groups. This applies not only to the domestic market with a young, beer-savvy, and continuously growing consumer base but also to export markets, especially the United States, where Mexican beers are increasingly consumed.

In the United States, by the end of May, the Mexican beer brand Modelo Especial, distributed by Constellation Brands, dethroned Bud Light, the undisputed market leader for the past 22 years, for the first time (inside.beer, 9.6.2023)

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