Constellation Brands on final stage to boost capacity at Coahuila brewery

Constellation Brands on final stage to boost capacity at Coahuila brewery

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Constellation Brands, which imports the Corona brand and others from Grupo Modelo into the United States, is in the final phase to reach 27.5 million hectoliters of capacity at its Nava, Coahuila brewery.

"From the operational point of view, our expansion projects in Mexico continue to advance on all fronts. Cerveceria Nava reached a record production volume during the second quarter (fiscal year 2018) and we expect to complete the next phase of expansion, bringing the brewery to 27.5 million hectoliters of capacity, by the end of the calendar year," said Rob Sands, president and CEO, in the quaterly report (PDF).

The company expects the capacity will pass from 25 to 27.5 million hectoliters by early 2018, as they invested US$ 250 million for that end, according to a press release issued by the company in January 2016.

Capital expansion projects in Mexico remain on track, the company says. “The Nava brewery achieved record production volumes and Obregon performed at high utilization levels during the quarter.”

In the second quarter of fiscal year 2018, Constellation Brands reported a 12.8% increase in net sales to US$ 1.3 billion. Meanwhile, volume grew 8.1% in the same period.

The company’s Corona and Modelo lines finished among the best-selling beers in America, continuing a trend from 2016. “The Modelo brand family drove strong portfolio performance during the key summer selling season with depletion growth of almost 20%,” the company reports. 

This helped the company’s beer portfolio grow by 12.8% compared with this fiscal quarter last year. Constellation Brands also pointed towards its 2017 acquisition of Florida craft brewer Funky Buddha as helping advance “the company’s strategy of leading the high-end of the U.S. beer market.”


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