MexicoCre Newsletter – April 25, 2025 Edition

Introduction: A New Era of Growth for Mexico

Mexico is solidifying its position as a global economic powerhouse, attracting significant investments from multinational corporations. With its strategic location, skilled workforce, and growing infrastructure, the country is becoming a hub for nearshoring and industrial expansion.

Two major announcements highlight Mexico's economic potential: Constellation Brands and Grupo Modelo are committing billions of dollars to expand their operations in the country. These investments not only underscore Mexico's importance in the global supply chain but also promise to create jobs, boost local economies, and enhance the nation's industrial capabilities.

In this edition of MexicoCre, we delve into these transformative developments, exploring their implications for Mexico's economy.

Constellation Brands: $1 Billion Investment in Veracruz

Expanding Operations to Meet Global Demand

Constellation Brands, a leading producer of beer, wine, and spirits, has announced a $1 billion USD investment to expand its operations in Veracruz. This move is part of the company's strategy to meet growing global demand for its products and leverage Mexico's strategic advantages in manufacturing and logistics.

• Why Veracruz? The state offers a prime location with access to ports, skilled labor, and a supportive business environment. These factors make it an ideal hub for Constellation Brands' expansion plans.

• Economic Impact: The investment is expected to create thousands of direct and indirect jobs, boosting the local economy and enhancing Veracruz's industrial profile.

• Sustainability Focus: Constellation Brands has emphasized its commitment to sustainable practices, ensuring that the expansion aligns with environmental standards and community needs.

This investment highlights Mexico's growing appeal as a destination for foreign direct investment, particularly in the beverage and manufacturing sectors.

Grupo Modelo: $3.6 Billion Investment Between 2025 and 2027

Strengthening Mexico's Brewing Industry

Grupo Modelo, one of the largest beer producers in the world, has unveiled plans to invest $3.6 billion USD in Mexico over the next three years. This ambitious initiative aims to expand production capacity, modernize facilities, and support the company's long-term growth strategy.

• Investment Breakdown: The funds will be allocated to building new facilities, upgrading existing plants, and enhancing distribution networks across the country.

• Job Creation: Grupo Modelo's investment is expected to generate thousands of new jobs, providing opportunities for local communities and strengthening Mexico's position as a global leader in beer production.

• Commitment to Innovation: The company plans to integrate cutting-edge technology into its operations, improving efficiency and sustainability.

This announcement reinforces Mexico's reputation as a key player in the global beverage industry and a top destination for large-scale investments.

Mexico's Strategic Advantages for Investors

Why Global Companies Are Betting on Mexico

The recent investments by Constellation Brands and Grupo Modelo are part of a broader trend of multinational corporations choosing Mexico as a base for expansion. Key factors driving this trend include:

• Proximity to the U.S.: Mexico's location makes it an ideal nearshoring destination, reducing transportation costs and ensuring faster delivery times.

• Trade Agreements: As a member of the USMCA, Mexico enjoys preferential trade terms with the U.S. and Canada, enhancing its appeal for exporters.

• Skilled Workforce: Mexico boasts a young, educated, and skilled labor force, particularly in manufacturing and engineering.

• Government Support: The Mexican government has implemented policies to attract foreign investment, including tax incentives and infrastructure development.

These factors position Mexico as a competitive and attractive destination for global businesses looking to expand their operations.

Economic and Social Impacts of These Investments

Transforming Local Communities and Industries

The investments by Constellation Brands and Grupo Modelo are expected to have far-reaching economic and social impacts:

• Job Creation: Thousands of direct and indirect jobs will be created, providing stable employment opportunities for local communities.

• Infrastructure Development: The expansion projects will drive improvements in infrastructure, including transportation, utilities, and logistics networks.

• Boost to Local Economies: Increased economic activity will benefit local businesses, from suppliers to service providers.

• Sustainability Initiatives: Both companies have emphasized their commitment to sustainable practices, ensuring that their operations benefit the environment as well as the economy.

These developments highlight the transformative potential of foreign direct investment in driving economic growth and improving quality of life in Mexico.

What's Next: Opportunities and Challenges

As Mexico continues to attract significant investments, the country faces both opportunities and challenges. On the one hand, these developments promise to boost economic growth, create jobs, and enhance Mexico's global competitiveness. On the other hand, the government and private sector must work together to address challenges such as infrastructure gaps, regulatory hurdles, and environmental concerns.

Conclusion: Join the Momentum

Mexico is on the rise. As the country continues to attract global attention, there are countless opportunities for businesses, investors, and professionals to be part of this exciting journey.

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Disclaimer

The views and opinions expressed in this newsletter are those of MexicoCRE and do not necessarily reflect the official policy or position of any affiliated organizations or individuals. While we strive to provide accurate and timely information, we encourage readers to conduct their own research and seek professional advice before making any investment or business decisions. MexicoCRE is committed to delivering insights and information that foster a better understanding of Mexico's economic landscape. Thank you for your continued support!