MEXICO - Industry
Managing Director, Cuauhtémoc Moctezuma
Marc Busain began his career at Heineken in 1995 in Burundi and later joined Heineken France. He has also acted as Financial Executive in Congo and the Netherlands and as President and CEO in Burundi, Egypt, and France. He has been President and CEO of Cuauhtémoc Moctezuma since 2011.
The origin of the relationship between Heineken and Cuauhtémoc Moctezuma (CM) can be traced back to the late 1980s and early 1990s when Heineken provided technical assistance to CM. Later, at the beginning of the 2000s, Heineken became the US distributor of CM’s brands. At the beginning of 2010, Heineken acquired 100% of CM from FEMSA. The acquisition of CM had a huge relevance for Heineken. CM has an excellent reputation built over more than 120 years in Mexico. Heineken and CM share values on creating economic and social value. We take care of our employees, communities, and the environment, and we have a shared passion for quality. We brew great products and we have a focused agenda centered on our customers.
European markets are very mature, and we expect growth to come from emerging markets in the following years. This is why investing in Mexico was obvious for us; we are talking about the second largest economy in Latin America and one of the most attractive and competitive beer industries in the world. The Mexican beer market is expanding. The share of beer in the alcoholic drinks market is around 70%, and 2 million people reach legal drinking age every year. CM’s volume is very important to Heineken as it represents roughly 15% of the company and we expect to continue outpacing the overall growth of Heineken.
About 90% of our production is sold domestically. Our main export market is the US, but we are experiencing interesting growth rates in Europe, Latin America, and Asia.
There are strong regional differences in Mexico in terms of consumer habits, branding, and packaging preferences. In Mexico the traditional off-premise retail segment continues to be extremely relevant for the beer industry. However, modern channels are also experiencing accelerated growth. The premium segment is underdeveloped compared to other countries, but we have seen excellent results with Heineken and our domestic premium brands, particularly in cities like Mexico City, Guadalajara, and Monterrey. We are confident that this segment will continue growing at an accelerated pace.
Evolution in beer demand varies dramatically from region to region. However, the demand for light beers, which was high in the north, is now increasing in the center of the country.
Our plans are to continue to grow in Mexico and amaze our consumers with our product offering. We plan to increase our capacity if the demand for our products continues to grow at a relevant pace.
We plan to further accelerate our growth and to continue leading the innovation agenda of the industry and further develop our brands. Most importantly, we want our brands be the preferred choice of the Mexican beer consumer.
© The Business Year – October 2012
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