E-Malt.com News article: 2879

Mexico: The CEO of Mexico's Grupo Modelo, the top U.S. beer importer with its Corona brand, said on June 30 a deal in the United States between local rival Femsa and Dutch giant Heineken NV was a "master move." But Modelo CEO Carlos Fernandez said in a rare interview that the Mexico City-based brewer, No. 6 in the world, would not give up its leading position in the U.S. import market -- with 37 percent of imports -- without a fight, Reuters revealed on June 30.

Femsa said in mid-June it was giving Heineken, the fourth largest brewer in the world, sole U.S. import rights for Femsa beers including Dos Equis and Tecate. "There are moves that I would classify as masterful from many of our international competitors ... master moves because no one expected them," Fernandez said. "The most reasonable would have been (for Femsa) to link with a local producer in the United States and have made some sort of alliance but it did not do it like that. Very good," the 37-year-old industrial engineer said.

Heineken is the second-largest beer importer to the United States after Modelo, half owned by Anheuser Busch Cos. Inc., the world's largest brewer. "I believe (the Femsa-Heineken link) is going to strengthen, a lot, the portfolio of global brands that they are going to sell now in the United States," Fernandez said. "But it is nothing new," he said. "The important thing is not to rest on our laurels, to be very alert and look after our brands. That's always been our philosophy. "We are going to dedicate time to doing what we have always done, and that is to fight," he said.

Analysts believe Heineken will position Femsa's beers in direct competition to Modelo's in the United States. The Heineken-Femsa accord, involving no money changing hands, came a month after Femsa dissolved its ties with Belgium's Interbrew SA (INTB.BR: Quote, Profile, Research) , agreeing to pay the Brussels company $1.245 billion to end a 10-year alliance. Modelo exports five times more beer to the United States than Femsa.


02 July, 2004