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Beer duopoly to dominate Mexican alcohol market

Friday, May 12, 2017

Subject

The Mexican drinks sector.

Significance

Beer chamber Cerveceros de Mexico announced last week that Mexico had overtaken Germany to become the world’s fourth-largest producer of beer. While two large foreign-owned groups dominate the sector, changing consumer tastes may well alter the market for alcoholic beverages.

Impacts

  • The two large brewers will aggressively seek to acquire any microbrewer that grows large enough to represent a competitive threat.
  • The European owners of Mexico’s two largest brewers may be able to contain any US protectionist threat.
  • There is little prospect of Mexican wine becoming a major export.
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