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Heineken To Expand Mexico Operations With $90m Plant

Heineken will build a 1.8 billion peso, or $90 million, can manufacturing plant in the northern Mexican state of Chihuahua near its brewery in the town of Mequoi, the company said on Monday.

The plant, Heineken's seventh in the country, will bring around 120 direct jobs after opening and around 150 during the construction phase, it said in a press release.

Increased Demand 

The beer-maker said it that had seen increased demand for cans in the country, as other national alcoholic drink producers like Becle Jose Cuervo's parent company, say they are struggling to obtain glass to bottle their spirits.

Around 40% of beer in Mexico is currently made in cans, while the rest is made in glass bottles, according to the National Chamber of Beer and Malted Drinks.

Profit Margin

On 20 April, Heineken announced that it was planning to stick to its 2022 profit margin forecast after a sharp jump in first-quarter beer sales and prices cheered investors despite added uncertainty from the conflict in Ukraine.

Driven by a steady loosening of coronavirus restrictions, particularly in Europe, Heineken's beer volumes rose by 5.2% on a like-for-like basis from the same period last year, beating the 3.5% average forecast in a company-compiled poll.

The increase in Europe was 11.5%, with beer sales in bars and restaurants almost tripling.

Overall, the world's second-largest brewer also raised the average income per litre by 18.3% through direct price increases, consumers trading up to more expensive beers and a shift in sales from supermarkets to bars, resulting in a 24.9% boost to revenue.

Read More: Heineken To Exit Russia At Cost Of Around €400m

News by Reuters, additional reporting and edited by Donna Ahern, Checkout. For more Drinks stories, click here. Click subscribe to sign up for the Checkout print edition.

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