Drought Puts Pressure on Mexican Brewing Industry

Beverage Industry News» Internationalposted Jan 16th, 2023 by Tom McCormick

The rains have come to California, but much of the Western U.S. remains in a severe drought. In Mexico, the prolonged drought has amplified concerns that large breweries are using precious water to make beer that is exported out to other countries.

Mexico is the world’s largest exporter of beer, and 76% of its total beer exports go to its northern neighbor. This means one of the country’s scarcest and most vital resources is being exported to the U.S. in the form of beer, and to the monetary benefit of non-Mexican companies, creating pressure on the government of Mexico to force breweries to relocate to the south where water is more abundant.

Constellation Brands, which produces Modelo and Corona for export to the U.S. and Heineken both brew over 58 million barrels of beer a year, which translates to using well over 300 million barrels of water. Meanwhile, local citizens are encountering drastic water rationing.

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