Brewing Giants in Mexico

Power Brands Consulting

There are certain exclusivity deals in the beverage industry that have generated controversy in recent months. If the antitrust regulator of Mexico rules that such deals are illegal, many American microbrewers could profit greatly. The primary function of the type of exclusivity deal in question prohibits restaurants and bars from stocking beverages produced by more than one brewer.

Darin Ezra, a beverage consultant at Power Brands, has noted two companies in particular that benefit from exclusivity deals: Grupo Modelo, owned by AB InBev, and Cuauhtémoc Moctezuma, owned by Heineken. According to a new GAIN report by the USDA Foreign Agricultural Service, “distribution is presumably the biggest hurdle craft brewers face due to the agreements the two giants, Modelo and Heineken, set with a number of on-trade establishments and off-trade retail outlets.” The report was written by Alicia Hernandez and Vanessa Salcido.

In 2010, an antitrust action was filed by SAB…

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