Constellation Brands' new brewing plant will be in southeastern Mexico and would have an investment of approximately 900 million dollars (million dollars), although without defining in which part of the country.

The decision was made after the current administration canceled the works of the headquarters in Mexicali, Baja California, as it considers that there is a gradual demand for beer in the North American market.

William Newlands, president and CEO of Constellation Brands, detailed that his investment guidance for the entire fiscal year 2022 is between $ 1 billion and $ 1.1 billion.

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The amount includes approximately $ 900 million for expansions of beer operations in Mexico, according to a publication by El Financiero.

“We continue to work with the Mexican government to solidify plans for a new brewery in southeastern Mexico with an adequate water supply and a talented workforce…”.

Meanwhile, the Secretariat for Economic Development and Competitiveness (SEDEC) of Tabasco reported that the entity "fights" for the installation of Constellation Brands.

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An investment of more than 1,500 million dollars and that would generate, at least, 400 direct jobs, mentioned Federico García Mallitz, head of the agency, according to a publication of TABASCO TODAY.

If completed, the work in Tabasco would involve the production of beer, containers and packaging, in addition to the transfer, which would trigger other projects related to this business.

In April 2021, the federal government canceled the advanced construction of the plant in Mexicali, derived from the result of a public consultation promoted by President Andrés Manuel López Obrador.

Constellation Brands explained in a report that the cancellation represented a loss of 665 million dollars and that in this work it executed 900 million dollars, of a total of 1,400, which was the estimated cost of the works.

According to the second quarter fiscal results report, the company's wine and spirits business generated $ 1.5 billion in EBITDA, up 6%, and $ 1.2 billion in free cash flow.

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