Heineken to turn Tecate into a global brandBy Elliot Bullman
Cuauhtémoc Moctezuma Heineken will convert Tecate, which is produced in Mexico, into a global brand, with the potential to reach 70 countries starting this year.
In a press conference, Dolf van den Brink, CEO of the firm in Mexico, reported that in 2017 the company began sales of the brand in Colombia.
After Heineken, Tecate is the second most important brand for the brewer in terms of volume, and is already sold in 17 countries through third parties, where the market with more relevance is the US.
"All the Tecate that is sold in the world comes from Mexico, but maybe in the future it can change," he said.
The CEO said that Mexico is one of the most important operations for the company, contributing 16% volume, 12% of revenues and 15% of profits, according to company data to 2016.
On the other hand he commented that they expect to start operations at their new MXN $2billion Meoqui plant by the end of 2017.
The plant will generate 500 permanent jobs and currently there are more than 2,000 people who collaborate in the construction of the complex.
Dolf van den Brink added that more than 1 billion pesos (mdp) have been allocated for the opening of new canning lines in Toluca and Guadalajara, as well as 200 mdp in its new distribution centre in Hermosillo.
According to data from market researcher Euromonitor International, Heineken has accelerated its participation in Mexico: in 2011 it had a penetration of 36.1%, while preliminary data to 2016 show that the share was 40.1%, ie almost 3.99 percentage points more.
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