Sustainable Brewing, Non-Alcoholic Innovation

Q: After 10 years of entering the Mexican market, what have been the main changes in beer consumer preferences? 

A: Over the past 10 years, Cervecería de Colima has experienced four key phases. In the beginning, the craft beer industry, both in Mexico and globally, saw rapid growth and excitement as consumers began exploring artisanal options. This period was marked by accelerated growth, not only for us but for the whole industry.

The COVID-19 pandemic brought significant disruption. Craft beer consumption, which primarily occurred in bars and restaurants, was severely impacted. We had to adapt quickly, creating new experiences for consumers and restructuring our commercial strategies to stay afloat during this challenging time. After the pandemic, we entered a period of recovery and reorganization. This included raising institutional capital to stabilize operations and lay the foundation for future growth.

Today, we are in a new phase of strategic expansion, launching key projects that allow us to regain the growth rates we had before the pandemic. Throughout all these stages, the constant has been our passion for the craft and our ability to reinvent ourselves while remaining true to our DNA.

Q: How is Cervecería de Colima’s distribution divided across online sales, restaurants, and retail stores, and which channel represents the largest share? 

A: Before the pandemic, 80-85% of Cervecería de Colima’s sales came from consumption centers, such as restaurants and bars, either directly or through distributors, with a smaller presence in retail and a newly launched website.

The pandemic forced us to rapidly diversify our distribution channels. By 2021, our sales mix shifted to approximately 50% from on-trade (restaurants and bars), 35% from retail stores, and 15% from digital channels. This diversification brought greater complexity, requiring us to develop skills for managing retailers, navigating digital advertising, marketplaces, and optimizing our website.

Today, the digital channel remains steady at 15%, offering a direct relationship with consumers, better feedback, and new opportunities to enhance customer experience. Moving forward, we aim to strengthen this channel while maintaining a balanced presence across restaurants, retail, and online platforms to reach more craft beer enthusiasts.

Q: What challenges did Cervecería de Colima face when entering the US market, and how is the expansion progressing now?

A: In 2019, we partnered with the fourth-largest beer distributor in the United States to enter the market, capitalizing on the growing demand for Mexican beer. At that time, brands like Modelo, Corona, and Pacifico were experiencing tremendous growth. After six months of preparation, we launched Colimita in March 2020. Unfortunately, the timing coincided with the onset of the pandemic, which disrupted our launch.

As a result, we ended our agreement with the distributor early last year and scaled back operations to focus solely on San Diego and Los Angeles. However, the fundamentals remain strong: Mexican beer continues to grow in popularity, and Colimita has the qualities to succeed. It is the most consumed Mexican craft beer in Mexico, a multi-award-winning lager, and a favorite in tourist destinations like Mexico City, Puerto Vallarta, and Los Cabos, where American visitors are familiar with it.

We believe Colimita has the potential to become a successful Mexican beer story in the United States, but we have learned that entering such a competitive and complex market requires significant resources, the right partner, and precise timing. While the pandemic was beyond our control, we remain confident in the opportunity and are carefully planning our next move into the US market.

Q: How has Cervecería de Colima adapted to the growing demand for non-alcoholic beer?

A: Cervecería de Colima has embraced changing consumption habits by launching Colima Cero, a non-alcoholic beer. This aligns with the trend toward premium, low-alcohol, and healthier options. The new product was developed entirely in-house by our team, without external consultants, and has been well received. Non-alcoholic beer is popular among regular beer drinkers who want the taste without the alcohol, which is particularly true for younger, health-conscious generations. 

We have invested heavily in production capabilities to extend shelf life, enabling us to reach international markets like Europe and Asia. In the medium term, we see non-alcoholic beer as a key growth driver for the company. Additionally, we are improving logistics through a vertical integration strategy with a supplier in Mexico City, addressing the last-mile delivery bottleneck. We have launched two variants, Cero Session and Cero Lager Amber, with plans to expand the portfolio further.

Q: Five months ago, Cervecería de Colima launched a new production line to quadruple its capacity. Has the company achieved this goal, and what were its previous and current production capacities? 

A: While 2023 was a challenging year in terms of restructuring, including the cancellation of unprofitable business lines, we are seeing significant improvements. From the second half of 2023, changes started to yield positive results, and we expect a 50% growth in this quarter compared to last year. By the end of the year, we anticipate 20% overall growth. The new investment in production capacity has allowed us not only to grow but also to improve product quality and efficiency, significantly reducing waste. We are confident that with the current capacity, we will not face growth limitations in the coming months or years.

Q: What sustainable initiatives has Cervecería de Colima developed to address its water consumption levels? 

A: At Cervecería de Colima, we are deeply committed to our local environment. One of our key initiatives is the Volcan de Fuego, Montaña de Agua (Fire Volcano, Water Mountain) program, which aims to conserve and regenerate the forests surrounding the Fuego Volcano. This project, in partnership with the Mexican Fund for Conservation (FMCN), helps preserve crucial water sources by protecting 1,200ha of forest, including rare mesophilic forests. We also implement comprehensive recycling practices, ensuring that nearly all waste, including malt and bagasse, is reused or recycled. Less than 5% of our waste ends up in landfills. We have a reasonable water consumption rate compared to the industry’s average and are currently exploring ways to expand and strengthen these initiatives, potentially involving other businesses and clients in funding these projects.

Q: What are Cervecería de Colima’s plans for the Mexican market? 

A: Our primary goal is to strengthen our current portfolio, focusing on Colimita and Piedra Lisa, ensuring they are widely available at key consumption points. We aim for 10-20% growth by improving our commercial teams, operations, and systems. Additionally, we are investing in COLD & CO, a logistics company that will enhance our service capacity in Mexico City and address logistical challenges, not only for us but also for other craft beer and independent beverage companies.

We are also launching a B2B platform to improve national distribution, especially in areas lacking local distributors, allowing bars and restaurants to place orders directly through our website.

A major product launch and our priority for 2025 is Colima Cero, which we are testing with key consumers. We believe it will become a leader in its category, supported by our extensive commercial platform. Expanding internationally is also on the horizon, with plans for exports to Spain, Japan, and potentially the United States in 2025.

Cervecería de Colima is a Mexican brewery. With over 10 years in the market, the company is one of the fastest-growing independent breweries in Mexico. The company is in Mexico, the United States, and parts of Europe.