Constellation Brands’ Plant in Veracruz Has Great Potential

Daniel Baima, President, Constellation Brands, pointed out that the company’s new plant, which is currently being constructed in Veracruz, could increase the company’s participation in the US East Coast market.

In 2015, Constellation Brands announced its new plant in Mexicali. However, in March 2020, that project was canceled after a consultation promoted by President López Obrador, due to water scarcity issues. Later, in 2022 the company communicated that it would build its complex in Veracruz, where they already had 14 water concessions.

A year after having announced the new plant in Veracruz, the president of the brewery assured that construction is progressing in time and form. “We have invested US$1.3 billion in Veracruz and the construction of the plant is advancing at a good pace. The movement of land has already been carried out and the construction of the foundation will begin soon. Moreover, transport tests will begin in mid-2024, taking advantage of all the ports that the state has,” said Baima.

The plant is expected to grow the company’s participation in the US East Coast market, as it will enable beer exports through boats, trains and trucks. “Veracruz opens the possibility of exporting to the American Union through two new means of transport,” he said.

Currently, Constellation Brands exports around 400 million cases of beer every year. It expects to increase this number by 50% and reach 600 million boxes annually. Baima highlighted that Mexican beer has been a huge success in the US. Modelo Especial is the second best-selling brand, while Corona is in fourth position. The company wants the latter to become a bestseller in the northern country. 

Baima recalled that Constellation Brands holds investment commitments in Mexico for over MX$5.4 billion (US$303.8 million) over the next four years. Part of this capital will be allocated to Veracruz and the rest will go to other facilities in Nava, Coahuila, and Obregon, Sonora. Regarding its canceled project in Mexicali, Baima said that they have moved part of that infrastructure to other plants in the country. Nonetheless, it ruled out that the company had received any compensation from the federal government.