CHICAGO �� Constellation Brands, brewer of fast-growing Mexican beers like Corona and Modelo, plans to buy another brewery in Obregon, Mexico, for $600 million from Grupo Modelo, the company announced Monday.
For Constellation's beer business, which is headquartered in Chicago, the planned acquisition is another step toward expanding its brewery network and gaining independence from an interim supply agreement with the Anheuser-Busch InBev-owned Grupo Modelo. In recent years, Constellation's Mexican imports has had success in the U.S., emboldening the company to invest in its continued growth.
The Obregon brewery allows Constellation to continue meeting that growing demand as it expands another brewery in Mexicali, said Constellation Brands spokesman Mike McGrew. And once the deal closes, expected in early 2017, Constellation will be the sole producer of its own beers, instead of relying on Grupo Modelo.
Under the supply agreement with Grupo Modelo, the Obregon brewery already produces Corona Extra, Corona Light, Modelo Especial, Modelo Negra, Pacifico and Victoria, McGrew said.
"The deal is subject to U.S. Department of Justice and Mexican regulatory approval.
While Constellation also produces wine and spirits, its Mexican beer portfolio is driving its growth.
Meanwhile, Constellation continues to expand a brewery in Nava, Mexico. When Anheuser Busch acquired Grupo Modelo in 2013, it sold the Nava brewery and U.S. distribution rights of Corona, Modelo and other Mexican beers to Constellation Brands to gain regulatory approval.
