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Mexico
 

Mexico’s beer market is twice the size of Canada’s and Labatt is helping to quench that thirst through partnerships with Mexico’s Formento Económico Mexicano, S.A. de C.V. (FEMSA www.femsa.com) which is Latin America’s largest beverage company, exporting its products to the United States, Canada, and select countries in Latin America, Europe and Asia.

FEMSA began operating in 1890 with the founding of the brewery Cervecería Cuauhtémoc. Today, with headquarters in Monterrey, Mexico, it operates through the following subsidiaries: FEMSA Cerveza, Coca-Cola FEMSA, FEMSA Comercio, FEMSA Empaques and FEMSA Logística.

In 1994, FEMSA Cerveza formed a strategic alliance with Labatt Brewing Company/Interbrew, which currently owns 30% of the FEMSA Cerveza capital.

FEMSA Cerveza produces and distributes recognized brands such as Tecate, Tecate Light, Carta Blanca, Superior, Sol, XX Lager, Dos Equis Ambar, Indio, Boemia, and Noche Buena. All six of its modern breweries have obtained international ISO 9002 quality certification, as well as Clean Industry certification from the Mexican federal government.

Cerveceria Cuauhtémoc Moctezuma exports its brands mainly to the United States and to select countries in Europe, Asia and Latin America.

The Labatt/CCM/Interbrew partnership offers many benefits:

Labatt and CCM have combined their U.S. import businesses to form Labatt USA, the second largest specialty beer company in the United States. (Labatt holds 70% and FEMSA Cerveza holds 30%.)

CCM’s resources, skills, and geographic proximity offer the promise of future growth in Central and South America.


THE FEMSA BREWERY
Mission: “To offer the best moments with the best beers.”

Vision: “To be the most successful Mexican brewery in the world.”

Brands: Carta Blanca, Tecate, Tecate Light, Superior, Sol, Dos Equis Lager, Dos Equis Ambar, Indio, Bohemia and Noche Buena.

Breweries: FEMSA Cerveza currently operates six production plants in:
Guadalajara
Monterrey
Navojoa
Orizaba
Tecate
Toluca


BACKGROUND INFORMATION
Cervecería Cuauhtémoc was founded in 1890 in Monterrey, Nuevo León, Mexico, and is the cornerstone of FEMSA.
In 1985 the Cuauhtémoc and Moctezuma breweries merged, and the company’s name was changed to Cervecería Cuauhtémoc Moctezuma, S.A. de C.V.
Sales as of December 2000 totalled 1.9 billion dollars.
Mexico’s potential beer market totals 61 million consumers and is growing at an annual rate of one million people.
FEMSA Beer serves approximately 260 thousand retail stores in Mexico.
Cervecería Cuauhtémoc Moctezuma produces three of the five leading brands in Mexico.
FEMSA Beer employs 17,213 people.


EXPORTS
As of December 2000, Cervecería Cuauhtémoc Moctezuma’s annual beer exports totaled 1.5 million hectoliters, representing 7.5% of the brewery’s total sales volume.
Approximately 89% of CCM’s exports are sold to the United States and Canada.
CCM offers the most extensive brand and presentation portfolio of all the beer imported into the United States.
Over the last five years, U.S. sales of CCM brands have risen 17% on average.
Of the 400 brands of imported beer marketed in the USA, Tecate tops sales for canned beers.
Tecate is the only Mexican beer sold in the United States in a sixteen-ounce can presentation.