Heineken Buys Femsa
Another giant step in global consolidation of beer industry
Heineken said today that it plans to buy the beer operations of Femsa, the maker of Dos Equis, further consolidating the global brewing industry.
The deal cements Heineken’s position as the world’s second-largest brewer by sales after Anheuser-Busch InBev of Belgium. In Mexico, Femsa is the second-largest brewer behind Grupo Modelo, the maker of Corona Extra, the top import brand in the United States. A-B InBev owns half of Grupo Modelo and wants to buy the rest. The strengthened competition from Femsa and Heineken could finally convince Modelo shareholders to drop their resistance to what many analysts expect will become inevitable — a complete sellout to A-B InBev.
Modelo filed for arbitration in 2008 after InBev bought St. Louis-based A-B for $52 billion. Modelo is asking for $2.5 billion in the New York-based arbitration case, saying A-B failed to consult with it about the takeover.
Last month, Modelo’s former chief financial officer said the Mexican brewer would likely lose the arbitration.
I hope this means we can get Noche Buena imported. It is a long ‘beer run’ to San Felipe every November. Or should I say, Please don’t discontinue it.
Thanks for the post Admin.
And on a further note about Henie operations- they are in the process of building a new brewery in Johannesburg, South Africa to compete in SABMillers home market.
I think this is a joint venture between H and Guinness – but who owns what share I have never heard
You are right Dick. Henie and Guiness are having a go at SABMiller in their home market for South Africans are huge beer consumers and SABMiller and Windhoek (Namibia) both distributed H and G’s beers poorly in the market in both South Africa and Namibia. Windhoek brewery has constantly battled SAB in South Africa years for market share and to promote themselves as the better “all natural” brand against Castle, Lion, Carling’s Black Label which is contract brewed by SABMiller there. Henie has the major share.