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Heineken Set To Expand Mexican Operations

By Steve Wynne-Jones
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Heineken Set To Expand Mexican Operations

Heineken plans to build a 1.8 billion peso (€85 million) can manufacturing plant in the northern Mexican state of Chihuahua, near its brewery in the town of Mequoi, the company has announced.

The plant, Heineken's seventh in the country, will bring around 120 direct jobs after opening and around 150 during the construction phase, it said in a press release.

The beer maker said it had seen increased demand for cans in the country, as other national alcoholic drink producers like Becle, Jose Cuervo's parent company, say they are struggling to obtain glass to bottle their spirits.

Around 40% of beer in Mexico is currently made in cans, while the rest is made in glass bottles, according to the National Chamber of Beer and Malted Drinks.

First-Quarter Sales

In April, the beer giant reported a sharper than expected rise in first-quarter beer sales, enabling the company to stick to its 2022 forecast despite added uncertainty in the marketplace.

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Beer volumes rose by 5.2% on a like-for-like basis from the same period last year, the group said.

The increase in Europe was 11.5%, driven by a steady loosening of coronavirus restrictions, with Heineken's beer sales in bars and restaurants there almost tripling.

Heineken said in February that spiralling inflation could lead to lower beer consumption, casting doubt on its plan to raise its operating margin to 17% in 2023.

Read More: Heineken Sees €400 Million In Charges On Exit From Russian Operations

News by Reuters, edited by ESM – your source for the latest Drinks news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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