Constellation Brands, the brewing company and the No. 1 seller of imported beer in the U.S. market, reported on its projects in Mexico.
During Fiscal 2023, which ended last February 28, it incurred capital expenditures of US$1.035 billion, including US$813.9 million for the Beer segment, mainly for the Beer Projects in Mexico.
Now, for fiscal 2024, the company plans to make capital expenditures of between $1.2 billion and $1.3 billion, of which approximately $1.0 billion will be for the Beer segment, primarily related to the Beer Projects in Mexico.
The remaining capital expenditures planned for fiscal 2024 consist of improvements to existing operating facilities and the replacement of existing equipment and/or buildings.
Management periodically reviews the investment program and modifies it based on the current and future needs of the Company.
Constellation Brands
In April 2022, the Company announced that, with the assistance of the Mexican government and state and local officials in Mexico, it acquired land in Veracruz for the construction of the Veracruz Brewery, where water is abundant and skilled labor will be available to meet its long-term needs.
The design and construction process for the Veracruz brewery is underway.
Over the past decade, Constellation Brands has significantly expanded its production capacity in Mexico. This growth has strengthened its leadership in the high-end segment of the U.S. beer market.
Since acquiring the imported beer business in 2013, the company has invested around $6.4 billion in its Mexico Beer Projects. Notably, over $750 million was spent during Fiscal 2023 alone.
During Fiscal 2023, optimization and productivity initiatives increased the brewery’s capacity. As a result, production capacity grew from approximately 39 million hectoliters to 42 million hectoliters.
Looking ahead, Constellation Brands plans to invest an additional $4.0 to $4.5 billion between Fiscal 2024 and 2026.
Expansion, optimization, and new construction are ongoing at its Mexican breweries. These efforts aim to meet future business demands.
By February 28, 2023, the company’s breweries in Mexico had a total capacity of 42 million hectoliters.
By the end of Fiscal 2026, Constellation Brands expects to expand its capacity in Mexico to between 67 and 72 million hectoliters. This will support the continued growth of its Mexican beer brands.