The lack of infrastructure, the insecurity that plagues various areas of the country and the increase in logistics costs are factors that hinder the investments of the brewery Constellation Brands in the interior of Mexico, specialists coincided in interviews with MILLENNIUM.
The third largest beer company in USA had to stop its investment plans for 1.4 billion dollars for a factory in Mexicali, Baja California, after a controversial popular consultation, in March 2020, voted no to the operation of the plant, with the argument of the damage it would cause to the water supply.
A year later the federal government announced that it had reached an agreement for the brewery, which has its corporate offices in Mexico City, build a plant in the southeast of the country.
Jose Ambe, CEO of Logística de México, a consultancy specialized in logistics and supply chain, explained that the operating cost of the brewery can rise from 3 to 5 percent if it is not located on the northern border.
He explained that it “increases logistics costs, it will probably remain competitive. What is going to have to happen is that they will have to increase inventory levels at consumption points ”.
Ambe He indicated that in modern logistics being close to the customer is very important because deliveries are made in hours and not days; companies are increasingly “competing for who delivers faster”, so considering another region far from the north of the country is not such a favorable alternative for the company.
In its financial report for the first quarter of the year, the company explained that they were “working with the Mexican government to explore options to add more capacity in other locations in Mexico where there is abundant water and a trained workforce to meet our long-term needs.” .
Last June, the governor of Veracruz, Cuitláhuac García Jiménez, offered the brewery to build the plant in its state, given that it has “enough water.” Despite the offer, analysts consider that it is not feasible to internalize operations in the country.
The also exclusive producer and marketer of the main brands of Model group in the US as Crown, Special model, Black, Pacific Model Y Victory Its operations are mainly concentrated on the west coast of the United States, so operating outside the northern border of Mexico will imply higher operating costs.
Only in May of this year, the Office of the Attorney General of the Republic (FGR) It registered 1,67 crimes against the transportation of cargo in all of Mexico.
Leonardo Gomez Vargas, CEO of the AsNational Freight Transportation Association (ANTP)He pointed out that Veracruz is among the first three entities where the most cargo transport thefts are registered.
In this he agreed Marcos Daniel Arias Novelo, economic analyst of Monex Financial Group, explaining that if the US company has not managed to make an investment outside the north of the country, it is due to the insecurity and lack of infrastructure that persists throughout the national territory.
“A difficulty faced by several companies, especially on the peninsula side, is the lack of energy infrastructure, since there are not enough gas pipelines to provide the energy needs that many of these companies require,” he said.
Both executives agreed that the key factor for a third plant will be location and distance, as it is a “strong weighting issue to make the decision. The north is a prime location. Location is a key variable for an investment of this magnitude ”, he pointed out. Arias Novelo.
According to the National Drug Threat Assessment 2020, of the Drug Control Administration (DEA, for its acronym in English), in the country there are nine drug trafficking cartels that have a presence throughout the national territory.
The Jalisco New Generation Cartel It is the criminal group with the most presence, operating in 25 states, including Baja California, Baja California Sur, Chihuahua, Nuevo León, Veracruz, Morelos, Zacatecas and the entire southeast and center of the country.
The Sinaloa Cartel has operations in 17 states, including Baja California, Baja California Sur, Sonora, Chihuahua, Sinaloa and the southeast.
With less participation, Los Zetas and the Northeast Cartel carry out criminal operations in Coahuila, Nuevo León, Tamaulipas, Veracruz and Puebla.
In the first quarter of the year, the firm registered a net loss of 908.1 million dollars. The net result of the company was due to the fact that it registered a negative impact at the accounting level due to unconsolidated investments of 899.2 million dollars and because the company incorporated an impact of 665.9 million in its accounts from what would be the plant in Mexicali.
Net sales between March and May were 2 thousand 26.5 million dollars, 3.2 percent more than 2020. By business segment, the turnover of the beer division grew 14 percent, to one thousand 572 million dollars, while of wine and spirits contracted 22 percent, to 454.5 million dollars.