Daily Management Review

According To A Trade Group, Mexican Craft Beer Will Gain Ground Despite Rising Costs


The Mexican craft beer industry is expected to grow by more than 10% this year, according to the country's brewing association ACERMEX, despite skyrocketing costs and competition from European-owned heavyweights.
"The effects of the pandemic, added to the war between Russia and Ukraine ... have caused costs to skyrocket," ACERMEX official Jose Rosas told Reuters.
"Most of the supplies for independent beer producers are imported, so the rising exchange rate is a problem and also the supplies are expensive due to shortages."
Nonetheless, ACERMEX anticipates that craft beer production in the country will increase 11% this year to approximately 34 million litres (59 million UK pints), with nearly 90% consumed locally, or in the state in which it was brewed.
According to the trade group, Mexican craft brewers produced 30 million litres (53 million pints) of the estimated 13.5 billion litres of beer brewed nationwide last year.
According to ACERMEX data, this resulted in sales of nearly 2 billion pesos ($100 million).
According to the report, craft brewers are also under pressure from large industrial breweries expanding in the country. The market is dominated by Dutch behemoth Heineken and Grupo Modelo, which is owned by Belgian behemoth AB InBev.
Heineken announced in June that it would build a 1.8 billion peso can manufacturing plant near its Mequoi brewery in the northern Mexican state of Chihuahua, which would be the company's seventh in the country.
Heineken reported strong profits despite rising costs in its most recent quarterly report, citing rising demand for its Amstel and low-alcohol brands, while AB InBev said it was expanding distribution across hundreds of Mexican convenience stores.