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alcoholic beverages
TABLE
is the largest com-
MAJOR MEXICAN CONTAINER GLASS MANUFACTURERS ponent of container
WITH LOCATIONS AND MARKETS SERVED
glass demand in the
Company Location Major segments country.
In Mexico, a wide
Owens Illinois Mexico Five container glass plants in Monterrey,
variety of alcoholic
Mexico City, Toluca, Guadalajara and Queretaro Food and beverage
beverages are con-
Grupo Modelo Three container glass plants in Mexico City,
sumed, including
San Luis Potosi and Tierra Blanca Beverage industry
some that predate
Sivesa Three container glass plants in Tultilan,
colonial settlement.
San Luis Potosi and Tierra Blanca Beverage industry
Overall, however,
Fevisa Industrial Two container glass plants in Mexicali
Mexicans current-
and San Luis Potosi Beverage industry ly prefer beer and
Constellation Brands Nava Beverage industry distilled alcoholic
Saverglass Jalisco Beverages, cosmetics beverages, such as
and perfumery tequila and rum.
Vidrio Formas Lerma Food and beverage In fact, beer and
Grupo Pavisa Mexico City Food and beverage tequila account for
the majority of all
alcoholic beverages
overall growth in the domes- export container glass directly consumed in Mexico.
tic economy. Mexico’s economy, and indirectly (through liquor Beer dominates the alcohol-
in fact, has seen unprecedented exports). ic beverage market in Mexico,
macroeconomic stability, which Mexico has transformed itself accounting for more than 80 per
has reduced inflation and inter- from a local spirits market to cent of total sales in this sector,
est rates to record lows while an international beer and spirits in terms of value. Estimated to
increasing per capita income. market in the last decade. The be about MXN 379 billion in
In spite of this, enormous gaps country is a sizable exporter of value terms, the Mexican beer
remain between urban and rural beer, tequila and other spirits to industry is the largest compo-
populations, northern and south- a number of markets, which has nent of demand for the container
ern states, and the rich and the propelled the demand of glass glass industry in the country. In
poor. containers. 2016, Mexico overtook Germany
Mexico’s economy has per- One of the key challenges in beer production to become
formed well compared to other that the Mexican container glass the fourth largest brewer in the
major Latin American economies industry recently had to face world.
in recent years, largely because was rising natural gas prices for Dominated by two major
of its thriving manufacturing sec- most of 2016 and first half of brewers, Grupo Modelo (AB
tor. Unlike Brazil and Argentina, 2017. This rise in price was InBev’s subsidiary, market share
whose manufacturing sectors are mainly caused by pressures due of 57 per cent) and Heineken’s
slumping, Mexico has continued to low production in the coun- Cuauhtémoc Moctezuma (40
to see solid growth because of its try. However, an increase in gas per cent of the market share),
integration with, and dependence imports from the United States the country’s beer production
on, the US market. in the second half of 2017 and
Mexico’s container glass the current year has eased pric-
industry has received great stim- ing pressure.
ulus from its demographic and
geographical position. Mexico, DEMAND DRIVERS FOR
a democracy of 120 million con- THE MEXICAN CONTAINER
sumers, has a great population GLASS INDUSTRY
dividend where the average age All three major segments of
is 25-26 and the population is container glass consumption –
growing along with purchasing food, beverages and pharmaceu-
power. Being located next to ticals – have contributed to the
the United States also creates growth of the container glass
a number of opportunities to industry in Mexico. However,

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