Finding their beach.JOSÉ ANTONIO LÓPEZ
CocaCola has a big lead over beer in terms of annual consumption, but the margins for at least one beer company are good news for shareholders.
The world’s largest beer producer reports that Mexico is its second most profitable market, after Brazil. Anheuser-Busch InBev, owner of Grupo Modelo, generated EBITDA (earnings before interest, taxes, depreciation and amortization) of 41.6% last year, somewhat higher than its results in the United States — 37%, and much higher than Europe, where it was 16.9%.
In Brazil, the firm recorded earnings of 46.8%.
Grupo Modelo, whose brands include Corona and Victoria, has 60% of the Mexican market, according to analysts at Credit Suisse.
In the last six years, the value of the beer market in Mexico rose 30%, driven by higher prices more than anything, according to the National Statistics Institute, which said consumption grew by only 2%.
This country represents 10% of the brewer’s income, 9% of its sales volume, and 13% of net earnings.
The consumer protection agency Profeco has estimated Mexican beer consumption at 62 liters per person. CocaCola consumption is about three times that, at 180 liters.
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