Just as with the fallout from the Scottish & Newcastle affair, the InBev acquisition of Anheuser-Busch is not without its ripple effect. Talks of purchases are now spilling across our southern border.
In Mexico, the “third most profitable beer market” in the world according to the Wall Street Journal, two giant brewing firms dominate 98% of the market. They are Grupo Modelo SAB and Fomento Economico Mexicano (Femsa) SAB. The former is famous for producing brands such as Corona Extra, Negra Modelo, and Pacifico, while the latter is known for its Dos Equis, Bohemia, and Tecate labels.
Through the A-B acquisition, InBev now has that 50% non-controlling stake in Grupo Modelo that once belonged to the boys at Bud. With lots of growth potential at hand in such a huge market, you can be sure InBev is intently eyeing that other 50% as well.
The WSJ indicates that analysts are expecting a total buyout of Grupo Modelo to take place within the next year or so, casting an anxiety-filled spotlight onto Femsa. It’s further expected that SABMiller will be making overtures to Femsa in an effort to stay competitive in North America and offer their protection as a rival multinational brewing powerhouse.
Both firms are family-controlled, so it seems that no board of directors or shareholders can oust the familial hands that pull the levers. Although Grupo Modelo has already done some chest-pounding about remaining independent, they suffer the problem of incurring debt to buy back half their freedom. Ergo, they could be drumming up prices for a potential sale in the future.
Femsa seems to stand a better chance, but could succumb to the same economic rationale that many brewers, even Anheuser-Busch, have faced. The opportunity for them to become more powerful in Mexico, if InBev acquires Grupo Modelo, exists. But the question is: how far does economic nationalism go?
If globalization has taught us anything, it goes as far as the nearest bank.


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