Mexican Beer

The next two weeks I will be on vacation. Part of the time I will be in Mexico City. In honor of my trip here is a post about Mexican beer. I will resume regular posting on March 11.

Before 1910 most beer in Mexico was brewed by small brewers. In the 1890s big modern breweries developed and by 1899 five firms controlled sixty three percent of the market. By 1910 the major brewers distributed nationally. The companies were vertically integrated, holding monopolies in everything from bottles to the railroads.

Corona Extra is the sixth largest beer brand in America and the top import. Constellation Brands owns Corona and Modelo. Modelo is the seventh largest beer brand. An industry analysis of Constellation  stated “Constellation’s story includes … a powerful demographic tailwind. Its core consumer base skews towards Hispanics, a sizable demographic whose primacy will only increase over the coming years. We find it fairly intuitive that Hispanics place a premium on Mexican beer, as it speaks in part to a shared culture and heritage, and in our view, these dynamics are at the heart of Constellation’s superb operating profile…”  There are some stereotypical assumptions in this analysis. For the full analysis, click here.

In 2010 Heineken bought the Mexican brewer Femsa; its brands are Dos Equis and Tecate. The company had a 43 percent share of the Mexican beer market. Dos Equis is twentieth. A german brewer in Vera Cruz created it in the nineteenth century. Tecate is 29th; Since  2013 it has had a 35 percent decrease in shipments. For the  full list of the top 31 brands, go here.

Mexico has a small craft brewing segment. These brewers produce ale; the majority of Mexicans drink lager. Most Mexican craft beer is exported since there is not really a market for it within Mexico. Mexico is third in global exports of beer, most of which goes to Canada and the United States.