Mexico: Constellation Brands to build a brewery in Mexico

Constellation Brands, the leading international beer, wine and spirits firm, has announced plans to build a brewery in southeastern Mexico with an estimated cost of $1.3 billion.

The announcement comes two years after the closure of a nearly completed $1.4 billion plant in the city of Mexicali near the US-Mexico border after residents voted against the project.

According to sources, the announcement of the new brewery is expected to be made by the company and Mexican President this week.

The brewery’s relocation culminates protracted negotiations between top executives of Constellation Brands, senior Mexican officials, and local authorities in Mexico’s impoverished southeast region.

A company spokesman said discussions with the Mexican government “have been productive and remain ongoing.”

Mexico is the world’s largest beer exporter and the main source of imported beer in the U.S.

Source: The Wall Street Journal