## Sheinbaum Announces $1.6 Billion Investment from Constellation Brands
On September 26, 2024, Claudia Sheinbaum Pardo, the President-elect of Mexico, met with executives from the American brewing company Constellation Brands. During the meeting, the company announced a significant investment of $1.6 billion in Veracruz.
“There’s a strong interest in continuing to invest in Mexico,” Sheinbaum noted on her social media account, accompanied by a photograph alongside Bill Newlands, President and CEO of Constellation Brands, and other top executives from the company, including Jim Bordeau, Matt Stanton, and Bernardo H. Martínez Aguirre.
Sheinbaum was joined by Lázaro Cárdenas Batel, the future Chief of Staff, and Marcelo Luis Ebrard Casaubón, the upcoming Secretary of Economy.
Constellation Brands, founded in 1945, is a U.S.-based alcohol beverage company known for its beers, wines, and spirits, including brands such as Corona, Modelo, Robert Mondavi, and SVEDKA Vodka. The company operates in over 100 countries and is listed on the New York Stock Exchange.
This investment follows a series of developments including the cancellation of a previous plant project in Mexicali, Baja California, due to local opposition. The company announced in August 2022 that it had secured 14 water concessions for a new plant in Veracruz, although the project was still awaiting operational permits.
## Government Extends Deadline for Constellation Brands’ Relocation to Veracruz
On March 27, 2023, María Luisa Albores González, head of the Secretariat of Environment and Natural Resources (SEMARNAT), confirmed that Constellation Brands has been granted an additional six months to transfer its equipment from Mexicali to Veracruz. This extension comes after a comprehensive two-day meeting where a new deadline was established to facilitate the relocation.
President Andrés Manuel López Obrador highlighted the challenges faced by the company in Mexicali, where initial permits were granted despite water scarcity issues. He emphasized the company’s compliance with the public consultation’s outcome, leading to the decision to relocate to Veracruz.
López Obrador has firmly stated that no more breweries will be allowed in northern Mexico due to water shortages, redirecting such investments to the south where water resources are more abundant. He reiterated the government’s commitment to balance economic growth with sustainable resource management.
## Constellation Brands Secures Water Rights for Veracruz Plant
On August 4, 2022, Constellation Brands announced that it had obtained water rights for a new brewery in Veracruz. The $1.3 billion investment aims to leverage Veracruz’s strategic location and resource availability.
Bernardo Martínez Aguirre, responsible for the company’s investment in southeastern Mexico, confirmed that the project is in a preparatory phase, securing necessary permits and ensuring compliance with federal regulations. The site selected for the new plant offers advantageous logistical connectivity, crucial for the company’s operational efficiency.
The investment is part of a broader $5.5 billion commitment Constellation Brands plans to invest in Mexico over the next four years. The relocation involves reutilizing some infrastructure from Mexicali, optimizing costs, and minimizing losses.
## Confirmation of Veracruz Plant Construction
In April 2022, President López Obrador confirmed Constellation Brands’ plans to build a new brewery in Veracruz, underlining the region’s ample water resources and potential for job creation. The new facility will be constructed with cutting-edge technology, ensuring environmental sustainability.
The new plant, expected to create around 2,000 direct jobs and 10,000 indirect jobs, is a strategic move aligned with both federal and local governments’ interests in stimulating economic growth in southern Mexico.
### Secondary Article: Industry Response and Environmental Considerations
The brewing industry has responded positively to Constellation Brands’ strategic investment shift, viewing it as a commitment to sustainable development amidst growing environmental concerns.
Environmental advocacy groups, although initially opposed to the Mexicali plant, have praised the company’s decision to relocate to a region with more sustainable water supplies. This move is seen as an exemplary case of aligning corporate investments with environmental stewardship and community preferences.
As the construction in Veracruz progresses, industry analysts anticipate this development will set a precedent for future investments in water-intensive industries, encouraging a balance between economic growth and resource conservation.
Keneth Lee Salazar, the U.S. Ambassador to Mexico, commended the investment as a testament to the strong economic ties between the two nations. He remarked that such initiatives help address key issues like employment and regional development, highlighting the importance of sustainable investments in fostering long-term prosperity.