Constellation Brands not giving up on Mexico, plots new US$1.3B new brewery

MEXICO – Constellation Brands, the American producer, and marketer of beer, wine, and spirits, is said to be planning to build a new brewery in Southeastern Mexico. 

According to the wall street journal, the new brewery could be worth around US$1.3 billion and its announcement could be revealed to the public before the end of this year.  

This would be the second attempt by Constellation Brands to have a major brewery in the South American nation after its first attempt was brought to a halt after citizens voted against the project.  

The local opponents said the factory would use too much water and hurt local farmers, a charge that Constellation at the time denied.   

In a statement, Constellation Brands said that it has been working with federal and state government officials on plans to meet its long-term brewery capacity in the country. 

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The company further noted that it was focusing on the southeastern part of the country “where there is ample water supply and a capable workforce”. 

While the exact location of the brewery is still unknown, Constellation commented that “discussions have been productive and remain ongoing”.  

However, sources privy to the matter suggest that the company was planning an important investment in the Gulf state of Veracruz. 

Earlier, Bloomberg News reported that Constellation Brands was exploring a merger with Energy drinks maker Monster Beverage Corp. 

The structure of a potential deal involving the companies, which have a combined market value of nearly US$92 billion, was not immediately known. 

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Bloomberg however said Monster Beverage has discussed a potential deal with advisers but it was yet unclear if discussions will lead to a full merger or asset deal. 

Meanwhile, US alcoholic beverage giant has made the full acquisition of California’s Booker Vineyard. 

According to a statement from the company, the Paso Robles–based estate vineyard, winery and tasting room are included in the deal. 

With the acquisition, Constellation’s wine portfolio now includes the brands Booker Vineyard, My Favorite Neighbor and Harvey & Harriet. 

Constellation executives told journalist that these brands saw double-digit growth since the company’s minority investment last year. 

Under the deal, Eric Jensen is expected to remain head winemaker, and will provide guidance on farming and hospitality, and act as an ambassador for the brands. 

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