Grupo Modelo Now Delivers Beer to Your DoorBy Jorge Ramos Zwanziger | Mon, 08/09/2021 - 20:14
Grupo Modelo joins the delivery business in Mexico through an app that promises to deliver cold beverages and snacks to users’ front doors.
Mexico has seen accelerated growth of its delivery market, with large contenders like Uber Eats and Rappi, making waves. The trend grew significantly in the country thanks to the COVID-19 pandemic. Now, traditional players want to join the game. “We observed a very big change in online purchases, especially for orders from particular stores. Many customers have made online purchases a regular habit, where it might not have been before. We have seen that our customers can adapt quickly to omnichannel,” said Arturo Vasconcelos, Deputy Director-General for Grupo Chedraui, to MBN in an interview.
Grupo Modelo is the latest to join the home delivery bandwagon. Over a year ago, the company owned by the AB Inbev Group started to develop a mobile app to deliver beer, cold beverages and snacks, explains EL CEO. This trend is growing as consumers were suddenly unable to go out to drink socially, meaning all social interactions involving alcohol had to be performed at home. “The online trend was already there. However, delivery apps were usually between 10 to 20 percent of a restaurant’s sales, depending on the type of food and how it is transported. With COVID-19, online sales suddenly became 100 percent of the restaurants’ revenue for several months. It made them realize the attractiveness of home delivery for the consumer. They could no longer see it as an ancillary business unit that was on automatic pilot,” explained Alejandro Solís, Director General at Rappi México, in an interview with MBN.
Grupo Modelo’s “Modelorama Now” caters to this change in users’ consumption habits, explained Julian Fernandez, Head of Analytics for Bursametrica to EL CEO. AB Inbev has faced significant growth thanks to its digital sales channels, said the company in its most recent financial statement. “In 1H2021, our owned direct-to-consumer (DTC) e-commerce platforms grew in revenue by more than two times compared to the same period last year. […] Based on this success, we continue to scale our courier platforms which are now available in ten of our markets,” explained the company. This large success has given the group the opportunity to focus on maintaining such levels of profit and value, particularly for the long term.