Heineken opens new brewery in Mexico

The world’s second-largest brewer, Heineken , is optimistic that talks to revamp the NAFTA trade deal will be successful, its Americas Division Chief Marc Busain said on Tuesday after attending the opening of the firm’s seventh brewery in Mexico .

On Twitter, Heineken México wrote in Spanish: "With the sustainable DNA of Heineken Mexico, today we open our new plant."

The process of getting beer from a brewery in Mexico to the United States involves a complex, cross-border supply network that could get more complicated if U.S. President follows through on threats to dump the North American Free Trade Agreement ( NAFTA ).

“Regarding NAFTA we are moderately positive that in the end there will be arrangement found that suits” the three nations, Marc Busain said in a telephone interview.

It should be noted that officials from Canada , the United States , and Mexico are meeting through March 5 in Mexico City for the seventh round of talks to renegotiate NAFTA . The trade deal underpins some USD$1.2 trillion in trilateral trade .

Heineken’s new USD$500 million brewery in Meoqui , Chihuahua , bordering the United States, will produce Tecate , Dos Equis , and Heineken for the Mexican domestic market and for exports .

“We chose the location because of its proximity to the U.S. and given the importance of the export business of Tecate and Dos Equis to the U.S.,” said Busain.

Mexican brewers have been building up capacity, as beer maker Grupo Modelo , the maker of Corona beer and a unit of global top brewer Anheuser-Busch InBev is planning to invest USD$744 million in a brewing and bottling plant in the central state of Hidalgo .

sg