Constellation Brands announces $2 Billion investment in Nava, Coahuila Brewery Plant

By: Ricardo E. Calderon, Copyright 2015, Eagle Pass Business Journal, Inc.

Mexican President Ernesto Pena Nieto welcomed Constellation Brands’ President and Chief Executive Officer Rob Sands to Los Pinos, the official residence of the Mexican President, in Mexico City, Mexico on Tuesday, June 16, 2015, to celebrate Constellation Brands’ $2 Billion investment in the expansion of its company’s brewery and glass bottle production plants in Nava, Coahuila, Mexico, near the U.S.-Mexico border about seven miles from Eagle Pass, Texas and Piedras Negras, Coahuila, Mexico.

President Pena Nieto congratulated Constellation Brands for its trust and confidence in Mexico’s future business environment in investing a record $2 Billion at its Nava, Coahuila brewery and glass bottling plants.

Sands stated “Constellation Brands is proud to be in Mexico, and we are here to stay. Our commitment and investments in our Mexican beer portfolio have resulted in record-breaking growth and accelerating U.S. consumer demand that is far ahead of market trends. We are thrilled about the investments we are making in Mexico because we believe Mexican high-end beer will continue to grow and be a leading beer segment in the U.S. for years to come.”

The $2 Billion investment will increase the brewery’s beer production capacity from its current 10 Million hectoliters to 25 Million hectoliters by the end of 2017 and expanding the glass furnace from one to four furnaces. When the expansion is completed in 2017, Constellation Brands estimates that approximately 2,500 persons will be employed at the Nava, Coahuila brewery, glass plant, and its Mexico City office locations.

Among the Mexican beers produced at the Nava, Coahuila brewery include Corona Extra, Corona Light, Modelo Especial, Negra Modelo, Pacifico, and Victoria. 100% of the beer produced is for export to the United States.

When completed, the Nava, Coahuila brewery will more than double its original plant and triple the size of its glass bottle plant.

Also present at the meeting were Governor Ruben Moreira Valdes of the State of Coahuila, Mexico’s Secretary of Finance Luis Velasquez, Secretary of the Economy Ildefonso Guajardo, Secretary of Agriculture Enrique Martinez, and U.S. Ambassador to Mexico Anthony Wayne.

This expansion is already having a significant economic impact on the U.S.-Mexico border twin cities of Eagle Pass, Texas and Piedras Negras, Coahuila as all the beer is exported through railroad at this border railroad port of entry. Both cities have seen an increased in international trade and freight resulting from materials, supplies, and personnel working on the expansion and operation of the two plants.

The increased railroad traffic through these two border cities is already causing long stoppage of automobile traffic at local railroad crossings and it is going to only get worse once the plant is fully operational producing 25 Million hectoliters by 2017.

Union Pacific Railroad is currently constructing a $40 Million railroad car washing facility in Spofford, Kinney County, Texas, about 40 miles north of Eagle Pass and Piedras Negras to wash the railroad cars coming in and out of the U.S. and Mexico transporting all the Constellation Brands’ Mexican beer as well as other railroad cars. The Spofford, Texas Union Pacific Railroad rail car washing facility is expected to be completed by October 2015 and fully operational by January 2016. Union Pacific Railroad is negotiating with the cities of Spofford and Brackettville, Texas to obtain the needed water to the rail car washing facility as well as exploring other options.

The Eagle Pass and Piedras Negras, Coahuila border and surrounding area will definitely see increased economic activity as a result of this significant $2 Billion investment by Constellation Brands.