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Mexico wants to produce more beer than Brazil

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By Roberto Noguez Noguez for Notimex

Mexico, Aug. 3 (Notimex).- The value of the beer market in Mexico has grown 53.6 percent and reached 21.5 billion dollars, however, the challenge for the industry is to consolidate the “Mexican beer moment” and be in the first places of production in the world, overcome Brazil, and reach the third place.

The director of Brewers of Mexico, Maribel Quiroga, told Notimex that there are opportunities with the next federal administration, with which they have already had communication, to work on the guarantees of respect for investment, the existing fiscal scheme, and give support to an industry that has announced investments of over 60 billion pesos since 2015.

“Without doubt we are living the moment of Mexican beer and the great challenge is to consolidate Mexico as the brewing country of the 21st century. Of course continue to grow in terms of production and in terms of exports and become the largest beer exporter in the world, but also to reach one of the three positions worldwide “, she said.

In an interview, Quiroga Fernández explained that currently, Mexico is the fourth beer producer in the world, after reaching a total of  110 million hectoliters last year, but, if producers keep doing things right, the investment will keep coming, and more beer plants will be built within Mexican territory. It is possible to overcome Brazil in a matter of years. Brazil had a production of 129 million hectoliters last year.

Only in 2017 the exports of the brewing sector reached a historical record of 33 million hectoliters, representing a growth of 2.8 percent, with a value of 3.7 billion dollars, of which 26.7 million hectoliters were destined to the United States, 922 million to the United Kingdom and 777 million to China.

photo chicago tribune

According to the director of Brewers of Mexico, 81 percent went to the United States, while the United Kingdom represented 2.8 percent, China 2.3 percent, Chile 1.6 percent and Canada 1.4 percent.

She stressed that artisanal products are also being exported, and 5.32 percent of the Mexican craft beer production in 2016 was sold outside Mexico, of which 90 percent of the brands arrived in the United States and Canada, 50 percent went to Europe, 30 percent to Central America, 30 percent to Asia, 20 percent to Africa and 10 percent to Australia and New Zealand.

She considered important for the industry to boost the local consumption, which has grown, given that five years ago we had a per capita consumption of 57 liters and currently it occupies the 32nd place globally, with an intake of 65 liters per person.

In fact, data from Euromonitor indicates that from 2012 to 2017, the value of the beer market in Mexico grew 53.6 percent, going from 14.5 billion to 21.5 billion dollars, but it is expected that by 2022 Mexico could reach the figure of 26.2 billion dollars.

The consultancy indicates that the Modelo Group is the market leader in the country, with a participation of 57.3 percent; followed by Cuauhtémoc Moctezuma-Heineken, with 40.4 percent; while Molson Coors Brewing Co. has a 0.6 percent, Cervecería Centroamericana SA 0.2 percent.

While artisanal beer represents 0.1 percent of the industry, it registered a double-digit growth last year, but the challenge is the tax issue that these types of products pay in Mexico.

The director of the Association of Brewers of the Mexican Republic (Acermex, for its acronym in Spanish), Paz Austin, recently pointed out that in 2017 craft beer production reached a total of 108,723 hectoliters, which represented a 65 percent growth, with around 650 producers, in addition it now represents 0.1 percent of the industry.

However, she said that the main challenge for the sector in Mexico is still the subject of the IEPS, since, although in terms of competition there are still many barriers to break, the most important is a space on the store’s shelf, prices, taxes and opportunities.

“Although we pay the same percentage for brewers, it is a tax that was created when there were two competitors, 26.5 percent on the production value (IEPS), the production cost of the two big ones is similar but craft beer producers are a very small competitor, with a small scale production that has to pay high taxes, expensive inputs and processes”, Paz Austin concluded.


Source: Notimex

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