E-Malt.com News article: 3776

Mexico: The leading Mexican brewery Modelo, maker of the popular Corona beer, is not contemplating "for the moment" a hike in domestic or export beer prices in 2005 because of mixed global economic signals. Jose Pares, Modelo's investor relations chief and spokesman, said on Friday, December 3, the company plans to defer any decision pending further news on inflation, exchange rates and the state of the Mexican and global economies, according to Reuters.

"For the moment a price increase (in Mexico and for exports) is not being contemplated," Pares said. "We have to wait." Pares said Modelo, half-owned by U.S.-based Anheuser-Busch Cos. Inc, one of the world's largest brewers, still expects to see growth this year of 1 % to 2 % in domestic beer volume.
In late June, the company cut its growth forecast for 2004 domestic volume because rain hit areas where Modelo is dominant that had seen heat waves last year. Its previous forecast was for an expansion of between 2 percent and 3 percent.

Global export volumes are seen expanding between 3 % and 4 % this year from 2003, Pares said. Modelo, which also brews Victoria, Pacifico and Montejo beers, raised domestic and export prices in January 2004. The price hikes helped boost revenues but caused sales volumes to vary. Prices of exports, with traditionally 90 percent going to the United States, rose 7 percent on average in dollar terms and local prices increased 5 percent.

Shares of Modelo were down 0.3 percent on Friday at 29.10 pesos but not far from 12-month highs. The stock has risen about 8 percent this year, compared with a rise of more than 30 percent in the bourse's main index.


05 December, 2004