Corona Beer

Topics: Mexico, Grupo Modelo, Toluca Pages: 2 (812 words) Published: April 22, 2013
Grupo Modelo S.A. de C.V. was formed in 1992, and opened its first brewery in 1925. It’s Mexico’s largest beer producer and distributor. Among the company’s many brands was Corona Extra, which had been the world’s fourth best selling beer in terms of volume. Under the operational direction of Diez, Modelo started producing Corona in clear quarter bottles in response to consumers’ preference for clear glasses. It became the strength and let it become popular. What’s more, Modelo bought the brands and assets of Toluca Mexico Brewery as well as the country’s oldest established brand of beer, Victoria. It led the company to have a strong growth. At this moment, the opportunity was that most local competitors were selling beer to the American army for WWII, so Modelo aimed to concentrate domestic market and improve distribution methods and production facilities within Mexico. Another economic factor was Mexico became industrialized, and it’s infrastructure allowed for large scale distribution. Because of the two factors, Modelo was successful to be a local leader. And Corona was listed on the Mexican Stock exchange in 1994. Mexico, the world’s 11th most populated country was one of the largest beer markets in the world and it’s also the birthplace of most affluent tequila. So there’s no doubt Modelo have lots of competitors, especially FEMSA. Though Modelo had built up a strategic alliance with Anheuser-Busch to broaden its international impact, FEMSA was distributing Coca-Cola products in Mexico and had a partnership with Heineken—Modelo’s international competitor to attack the U.S. Market. Heineken planned to be the market leader in US through aggressive campaign. So Modelo made efforts to be more competitive. According to Modelo’s expanding abroad, Corona distributed by Amalgamated Distillery Products Inc, and because of its unique products, it had become the second most popular imported beer in United States. Then, a political problem—coupled with federal...
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