Vitro: Grupo Modelo reduces order for beer bottles

Vitro S.A.B. de C.V. announced 18 December 2008 that Grupo Modelo (Modelo), one of the Glass Container business unit“s key customers, has notified the company that it has reduced its beer bottle requ…

Vitro S.A.B. de C.V. announced 18 December 2008 that Grupo Modelo (Modelo), one of the Glass Container business unit“s key customers, has notified the company that it has reduced its beer bottle requirements due to the current world market contraction. Both firms are in talks to find common solutions that minimize the impact of this fall in volume. Several alternatives are being considered including giving Vitro priority on Modelo“s new product developments as well as bringing forward 2009 shipments to ensure the continuity of Vitro“s production programs. Vitro and Modelo have worked together for over 40 years in a mutually beneficial business relationship that has allowed both companies to achieve a significant growth in sales and profits. The volume reduction will impact Vitro“s annual consolidated sales figures for 2009 by approximately 6.9% of 2008 estimated sales. In anticipation of this volume reduction, the Glass Container business unit will optimize its production capacity in order to maximize utilization and efficiencies of its manufacturing facilities to support its existing business base as well as taking advantage of new opportunities.