Constellation Brands Will Spend More Than $1.5 Billion To Expand Growing Mexican Beer Business

By Markets MarketWatch Pulse

Constellation Brands said on Thursday it plans to build a new $1.5 billion brewery in Mexicali, Mexico. The company's new brewery will have the capacity to produce 10 million hectoliters of product (one hectoliter is equal to 100 liters), with the ability to expand to 20 million hectoliters. Constellation Brands hope the brewery will be completed in the next four to five years. Chief Executive Rob Sands said in a statement the company's Mexican beer business has been exceeding sales seen in the U.S. market. In addition to the $1.5 billion to build the new brewery, $500 million will be spent to invest in land, water rights, infrastructure and other site requirements at the Mexicali location, according to a news release. Constellation Brands will also expand production capacity at its brewery in the Nava Municipality to 27.5 million hectoliters from 25 million. That project, expected to be completed by early 2018, will cost about $250 million. Constellation Brands is the company behind Corona, Modelo, Svedka, Black Box Wine and Pacifico, to name a few.

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