Constellations Brands reported that it plans to increase its beer production in Mexico by 15%.
Since the acquisition of the imported beer business in June 2013, the company has invested approximately $ 4 billion for the Mexican Beer Expansion Projects, with approximately $ 520 million during fiscal year 2020.
To align with its anticipated future growth expectations, it is targeting an additional 5 million hectoliters.
Constellation Brands’ production capacity expansion activities will be completed at Cervecería Obregón and it is exploring options to add more capacity in Mexico to meet its long-term needs.
Furthermore, since June 2013, the company has more than tripled its production capacity in Mexico from 10 million to approximately 34 million hectoliters.
Constellation Brands: Financial results
The company’s current production capacity gives it the opportunity to further expand its leadership position in the high-end segment of the U.S. beer market by increasing its investment in innovation.
As part of these efforts, in fiscal year 2019 it introduced Corona Premier, a low-calorie, low-carbohydrate product offering, which has become one of the top growth contributors to the high-end segment of the U.S. beer market. .
Constellation Brands and innovations
During fiscal year 2020, it launched Corona Refresca and in early fiscal year 2021 it launched Corona Hard Seltzer.
The national launches of Corona Refresca and Corona Hard Seltzer are part of efforts to capitalize on the growth of the high-end alternative spirits category.
In addition, it continues its efforts focused on increasing product sales distribution in can formats, individual service and larger packages.
In March 2020, Constellation Brands sold the craft beer business Ballast Point, including some of its production facilities and associated breweries.
This divestment is consistent with its focus on its high-performance import portfolio and upcoming product introductions.