Euromonitor International
August 2014
Operating Environment............................................................................................................... 11
Contraband/parallel Trade ...................................................................................................... 11
Duty Free ................................................................................................................................ 12
Cross-border/private Imports .................................................................................................. 12
Market Indicators ........................................................................................................................ 12
Table 10
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Table 15
Table 16
Table 17
Table 18
Table 19
Table 20
Table 21
Table 22
Table 23
Table 24
Table 25
Definitions................................................................................................................................... 17
Published Data Comparisons ................................................................................................. 17
Sources ...................................................................................................................................... 18
Summary 1
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II
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III
Table 26
Table 27
Table 28
Table 29
Table 30
Table 31
Table 32
Table 33
Table 34
Table 35
Table 36
Table 37
Table 38
Table 39
Table 40
Table 41
Table 42
Table 43
Table 44
Table 45
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IV
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Table 83
Table 84
Table 85
Table 86
Table 87
Table 88
Table 89
Table 90
Table 91
Table 92
Table 93
Table 94
Table 95
Table 96
Table 97
Table 98
Table 99
Table 100
Table 101
Table 102
Table 103
Table 104
Table 105
Table 106
Table 107
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VI
Table 117
Table 118
Table 119
Table 120
Table 121
Table 122
Table 123
Table 124
Table 125
Table 126
Table 127
Table 128
Table 129
Table 130
Table 131
Table 132
Table 133
Table 134
Table 135
Table 136
Table 137
Table 138
Table 139
Table 140
Table 141
Table 142
Table 143
Table 144
Table 145
Table 146
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VII
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VIII
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Mexico has made many consumers hesitant to go out at night in many areas and to prefer to
entertain in their homes, where they feel safer.
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Outlook
The forecast of the whiskeys category is still on the increasing trend over the forecast period
with an estimated 12% volume CAGR until 2018. Consumers are boosting the category and the
bulk of sales are made to middle-income consumers, which are the segment that is growing
more in Mexico and in fact across Latin America. Middle-income consumers are more immersed
in aspirational products and keep searching for higher-quality products, driving the double-digit
growth rate of whiskeys. With new products or flavours from already recognised brands, this
trend is reinforced. As Jack Daniels Tennessee Honey brand has been launched with a
complete media campaign, other whisky companies might be willing to follow the trend of
targeting new consumers with innovative flavours that will attract their attention, whilst they also
invest in maintaining their already loyal consumers, especially with social network marketing,
which has been a well-used channel for alcoholic drinks promotion benefitting from the lack of
legislation around that channel.
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Premiumising Products
The increasing disposable income and purchasing power of the middle-class segment in
Mexico has elevated the quality of products that these same consumers want. Consumers
believe themselves to be hard-working persons who do not have much time for treating
themselves and thus, they are willing to play with the ratio of quality vs. quantity. Therefore
consumers are boosting the trend of having more products perceived as high quality and they
tend to spend less on basic commodities. A new type of consumer is arising and this consumer
makes careful decisions, knowing how to earn some money for basic commodities and also how
to spend it the best way, feeling at the same time that they are in a higher aspirational status.
This situation is prompting companies to start to elevate consumers to higher-quality products
with higher prices and margins. One example of this is the recent launch of Strongbow cider by
Heineken Mexico. Cider has been present in Mexico for decades but is mostly targeted to lowincome consumers who celebrate with cider instead of more expensive sparkling wines or
champagnes.
Outlook
Consumers are no longer easily satisfied, and with the effect of social networks they have
easier ways to know what products are trending, what places are the most famous or visited and
so forth. Products that formerly were targeted to the lower classes are now trendy products with
marketing campaigns that support their trendiness or high quality perception that targets
seekers of high quality, of whom the vast majority are now in the middle-class segment. This is
the case of tequila, mezcal, artisanal beer and most recently cider. The cider category is facing
changes due to the recent launch of Strongbow cider by Heineken Mxico. This product comes
in individual sizes of 300ml and 500ml when traditionally cider in Mexico is sold in sizes of one
litre or more, and is intended for celebrating with family and friends at home gatherings, the
strongest and main sales being in the off-trade channel and in specific seasons. Heinekens
strategy is to premiumise the cider category with the introduction of Strongbow, which is a very
different cider than what Mexicans are used to. Mexican cider is sweet and Strongbow is not,
but Heineken is betting that sales of Strongbow will be well received by consumers who are
already aware of the brand from travel to other countries where the brand has presence already.
Therefore, Strongbow cider is targeted to consumers who like premium brands or who are into
trying new products and like aspirational products, which is a trend amongst many consumers in
the alcoholic drinks industry and in various product categories. The Strongbow launch has
already made some competitors launch their own cider brands in personal formats as the cider
category become stronger in consumers minds thanks to Strongbows marketing efforts during
2013. Cider is an example of a category where premium products are launched to aim at the
middle and upper classes who consume more quality products, therefore boosting sales of
higher-price and higher-margin brands. Due to this launch and other examples of premiumised
products plus the demand of consumers to have high-quality products that are also aspirational
and make them feel amongst a new status quo, the alcoholic drinks industry is expected to keep
on innovating and aiming at a new consumer who is willing to pay more for products that they
perceive are worthwhile emotionally and financially.
MARKET BACKGROUND
Legislation
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activity in their advertising. Every actor or model appearing in any type of alcohol-related
advertisement must be at least 18 years old and clearly portrayed as an adult.
Television and radio advertisements for spirits, wine and RTDs can only be broadcast after
22.00hrs. Beer products are exempt from this regulation and may be advertised during special
events such as football matches at any time of the day. According to the government, this is
because beer products have a lower alcohol content than other types of alcoholic drinks.
Advertising alcoholic drinks via the internet has become increasingly common in Mexico. Not
only is internet advertising relatively cheap, it also affords greater flexibility and freedom, and
online campaigns can be more closely tailored to specific target audiences. Moreover, there
are no regulations regarding the time of the day alcoholic drinks can be advertised online and
unlike international rules that do not allow minors to enter the websites of companies
producing alcoholic drinks, in Mexico this is not a legal requirement. Some local producers of
wine and spirits, such as Monte Xanic SA de CV, Valle Redondo SA de CV and Vincola LA
Cetto SA de CV, do not demand that online visitors select their date of birth from drop-down
menus, which is something that has become standard worldwide.
Smoking ban
On 1 April 2008, a ban on smoking in all enclosed public areas including on-trade
establishments came into force in Mexico City. In August of the same year, the smoking ban
was implemented nationally through the passing of the Ley General Para el Control de
Tabaco (General Law for the Control of Tobacco). The ban was initially met with strong
opposition and even faced a number of legal challenges. It has gradually come to be widely
accepted by consumers and on-trade operators alike, however. Many restaurants, bars, clubs
and other on-trade establishments have created designated open-air smoking areas. As a
result, the smoking ban has not had a noticeably negative impact on on-trade alcoholic drinks
consumption.
Opening hours
In Mexico, it is the prerogative of individual states to regulate where and when alcoholic drinks
can be sold. Accordingly, opening hours for establishments selling alcoholic drinks vary from
state to state. Generally speaking, convenience stores in large cities are open 24 hours a day
and can sell alcoholic drinks without restriction. However, in some states and municipalities, it
is illegal for convenience stores and other retailers to sell alcoholic drinks after midnight.
Opening hours for independent small grocers and independent food/drink/tobacco specialists
vary depending on their locations and practices, but very few operate on a 24-hour basis.
Large grocery retailers and chained specialist outlets, meanwhile, are typically open 07.0023.00hrs, but in some states like Estado de Mxico they are not allowed to sell alcoholic
drinks after 22.00hrs.
Regulations for on-trade outlets depend not only on the type of establishment in question (eg
restaurants, bars, pubs, nightclubs), but also on their location. In Mexico City, for example, the
law regulating on-trade businesses (Ley de Establecimientos Mercantiles) states that on-trade
outlets must stop serving alcoholic drinks at 02.00hrs. This law also states that restaurants
may only serve alcoholic drinks between 12.00hrs and 24.00hrs. In coastal areas, restaurants
and bars may have extended opening hours at night due to the fact that higher temperatures
tend to limit the consumption of alcoholic drinks (with the exception of beer) during the day.
During special national holidays or events, the sale of alcoholic drinks is prohibited across
Mexico under a regulation known as the Ley Seca (Dry Law). Most notably, this ban is
enforced starting at 22.00hrs the night before and on the day of state and national elections,
although it also applies on certain national holidays like 16 September.
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On-trade establishments
Widespread public concern and government containment efforts during the H1N1 (swine flu)
outbreak in April and May 2009 resulted in the closure of many businesses in Mexico,
including on-trade outlets selling alcoholic drinks. Bars and restaurants in major urban centres
such as Mexico City were particularly badly affected. In 2009, the effect of the outbreak, in
combination with the severe economic recession, resulted in a 10% constant value decline for
the consumer foodservice industry in Mexico. Furthermore, bars and pubs posted a 3%
decline the same year.
As an economic recovery took place over the 2010-2012 period, the resurgence of the ontrade channel became imminent. This was particularly true in central Mexico and large cities
such as Mexico City, where fashionable neighbourhoods such as Condesa, Roma, Polanco
and Santa Fe continued to witness the opening of bars and restaurants to provide residents
with more recreational spaces outside the home. The opposite has occurred in northern
Mexico, where violence arising from drug cartel wars keeps the population in a state of alert,
with the consequent closure of many on-trade establishments. An exception to this is the state
of Nuevo Len where the largest city, Monterrey, has seen some on-trade outlets emerge
after a new sense of peace is entering the city again (in terms of drug cartel wars) prompting
young adults to go out again and attend these new outlets where alcoholic drinks are sold.
This situation has benefitted the industry, but not much, but it has benefitted from other
reasons, mainly the slight growth in 2013s economic situation.
Table 1
Consumer Foodservice
100% Home Delivery/
Takeaway
Cafs/Bars
Full-Service Restaurants
Fast Food
Street Stalls/Kiosks
Source:
2008
2009
2010
1011
2012
2013
772,946
2,879
771,767
2,884
779,981
2,922
760,609
2,959
757,978
2,989
759,117
3,026
28,723
219,267
34,515
487,562
29,114
216,250
34,711
488,808
29,573
219,129
36,209
492,148
30,087
222,519
37,544
467,500
30,581
225,929
39,482
458,997
31,185
229,295
41,327
454,284
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RTDs
Spirits
25
n/a
16
1.75
30
n/a
16
1.75
50
n/a
16
1.75
Table 3
Wholesaler
Retailer
Wholesaler
Retailer
Source:
Note:
Beer/Wine/
cider/perry
Beer
C/p
RTDs
Wine
Wh
BC
7
7
WS
20
25
10
20
Rum
23
15
12
20
T
20
30
18
28
L
15
15
22
22
OS
24
7
27
28
Table 4
13.8
24.6
10.3
13.3
38.0
100.0
Table 5
Selling Margin of a Typical Beer Brand in Retail Channel that does not use
Wholesalers 2013
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VAT
Retailer
Excise
Manufacturer
TOTAL
Source:
Passport
13.8
27.2
15.3
43.7
100.0
Table 6
13.8
27.2
15.6
11.3
32.2
100.0
Table 7
Selling Margin of a Typical Wine Brand in Retail Channel that Does Not Use
Wholesalers 2013
13.8
27.2
15.3
43.7
100.0
Table 8
13.8
27.2
15.6
11.3
32.2
100.0
Table 9
Selling Margin of a Typical Spirits Brand in Retail Channel that does not use
Wholesalers 2013
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2013
VAT
Retailer
Excise
Manufacturer
TOTAL
Source:
13.8
27.2
15.3
43.7
100.0
OPERATING ENVIRONMENT
Contraband/parallel Trade
Contraband and parallel trade represent a serious threat to legitimate manufacturers and
distributors in the Mexican alcoholic drinks industry. Illegal distributors import alcoholic drinks
products from countries other than their places of origin to avoid paying taxes, and then sell
them for less than the usual retail price in Mexico. These practices are most evident in spirits,
where taxation is considerably higher than in other categories. According to the Cmera de la
Industria de Vinos y Licores (Industry Commission for Wines and Liquors CIVYL), an
estimated 45% of alcoholic drinks value originated from illegal sales in 2011, and as a result of
the economic crisis and reduced purchasing power of consumers, that percentage has most
probably increased. According to the Comisin Federal para la Proteccin de Riesgos
Sanitarios (Federal Commission for the Protection from Sanitary Hazards), or COFEPRIS, the
supply of contraband alcoholic beverages increased by 300% between 2010 and 2012.
Increasing consumption of illegal alcoholic beverages over the review period prompted the
Mexican Congress to make the penalty for the alteration, falsification or contamination of
alcoholic beverages more severe in 2012, now punishable by nine years in prison and a fine of
between 100 and 1,000 times the daily minimum salary. During 2013 the Procuradura Federal
del Consumidor (Federal Bureau of Consumer Protection) pointed out that 40% of
commercialised alcoholic beverages are illegal.
According to the Ministry of Health, tequila, rum, Cognac and whisky are amongst the most
frequently counterfeited alcoholic drinks in Mexico. Counterfeit products are sold in tianguis,
large open street markets notorious for all kinds of criminal activity. The most famous of these
are found in the Tepito and Santa Cruz neighbourhoods of Mexico City. Counterfeit alcoholic
drinks sold at such locations usually cost less than half the price of legitimate products sold by
licensed retail and on-trade distributors.
According to industry sources, the states where most of the counterfeit alcohol drinks
products sold in Mexico are produced are Mexico City, Estado de Mxico and Jalisco. The
leading location for the consumption of counterfeit products, meanwhile, is Cancn.
The Ministry of Public Security is constantly working to limit the trade in counterfeit alcoholic
drinks, seizing thousands of illegal products each year. The Procuradura Federal del
Consumidor or PROFECO (Federal Bureau of Consumer Protection), meanwhile, carries out
regular inspections to identify and shut down on- and off-trade establishments that sell
counterfeit spirits. In the case of tequila, the Consejo Regulador del Tequila or CRT (Regulating
Council of Tequila) also carries out inspections and continually lobbies the Mexican Congress to
impose harsher penalties on those who produce or sell counterfeit products. Together with the
Mexican media, the government authorities are working to make the general public aware of the
health risks posed by counterfeit products, and inform consumers of practical ways to determine
whether the alcoholic drinks they buy are legitimate or fake. In addition, the authorities are
seeking to educate consumers about the simple steps they can take to limit the trade in
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counterfeit products, such as destroying the bottles used to package legitimate brands after their
contents have been consumed.
Duty Free
Dufry Mxico SA de CV is the firm that currently holds the government contract to manage
duty-free outlets in most major airports in Mexico, operating 47 duty-free outlets in the country.
A significant proportion of international air travellers purchase alcoholic drinks at these outlets,
especially premium spirits and wine products, to avoid high local excise taxes. Travellers can
either purchase alcoholic drinks in duty-free outlets or place an order via the internet and pick up
their purchases upon departure.
Cross-border/private Imports
Citizens residing within 50km of the US border in the North of Mexico or the Guatemalan
border in the south of the country are allowed to pay a discounted excise tax of 10% on
alcoholic beverages. It is likely that some people exploit this tax break by smuggling alcoholic
drinks into other parts of the country where excise taxes are higher. Whilst there are no official
figures available on how widespread this practice is, it is not believed to be significant.
MARKET INDICATORS
Table 10
MXN million
Total
Source:
Note:
2008
2009
2010
2011
2012
2013
154,193.8
161,639.4
169,840.2
184,643.2
202,073.8
210,619.0
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
2013 data is forecast
MARKET DATA
Table 11
Million litres
Beer
Cider/Perry
RTDs/High-Strength
Premixes
Spirits
Wine
Alcoholic Drinks
Source:
Table 12
2008
2009
2010
2011
2012
2013
6,467.9
12.9
128.7
6,545.5
12.1
130.1
6,397.6
12.3
135.7
6,788.5
12.4
144.2
6,931.9
12.5
154.5
6,876.3
12.7
158.2
214.6
60.6
6,884.7
215.2
59.3
6,962.2
223.7
63.2
6,832.5
231.0
67.4
7,243.4
237.7
72.4
7,409.0
242.8
76.4
7,366.4
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MXN million
Beer
Cider/Perry
RTDs/High-Strength
Premixes
Spirits
Wine
Alcoholic Drinks
Source:
Table 13
2008
2009
2010
2011
2012
2013
219,844.8
605.9
5,550.4
232,380.6
599.0
5,868.1
241,370.1
634.8
6,176.6
268,932.9
660.4
6,587.6
290,815.6
691.7
7,257.0
304,750.4
736.9
7,760.2
70,184.4
13,947.5
310,133.0
70,501.3
14,222.3
323,571.2
77,356.8
16,048.5
341,586.8
84,324.8
17,866.0
378,371.7
92,010.3
20,195.0
410,969.7
99,700.0
22,565.8
435,513.4
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Beer
Cider/Perry
RTDs/High-Strength Premixes
Spirits
Wine
Alcoholic Drinks
Source:
Table 14
2012/13
2008-13 CAGR
2008/13 Total
-0.8
2.0
2.4
2.1
5.5
-0.6
1.2
-0.3
4.2
2.5
4.7
1.4
6.3
-1.6
23.0
13.1
25.9
7.0
Euromonitor International from official statistics, trade associations, trade press, company research,
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Beer
Cider/Perry
RTDs/High-Strength Premixes
Spirits
Wine
Alcoholic Drinks
Source:
Table 15
2008-13 CAGR
2008/13 Total
4.8
6.5
6.9
8.4
11.7
6.0
6.7
4.0
6.9
7.3
10.1
7.0
38.6
21.6
39.8
42.1
61.8
40.4
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2012/13
Off-trade
On-trade
TOTAL
5,425.6
11,698.5
147,399.2
1,450.7
1,038.0
10,811.0
6,876.3
12,736.4
158,210.2
179,577.8
49.4
5,813.7
63,234.0
27.0
1,552.7
242,811.8
76.4
7,366.4
Euromonitor International from official statistics, trade associations, trade press, company research,
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Table 16
Passport
MXN million
Beer
Cider/Perry
RTDs/High-Strength Premixes
Spirits
Wine
Alcoholic Drinks
Source:
Off-trade
On-trade
TOTAL
162,455.9
542.0
5,617.9
40,117.4
8,139.4
216,872.6
142,294.5
194.9
2,142.4
59,582.6
14,426.4
218,640.8
304,750.4
736.9
7,760.2
99,700.0
22,565.8
435,513.4
Euromonitor International from official statistics, trade associations, trade press, company research,
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Table 17
% volume analysis
Beer
Cider/Perry
RTDs/High-Strength Premixes
Spirits
Wine
Alcoholic Drinks
Source:
Off-trade
On-trade
Total
78.9
91.9
93.2
74.0
64.6
78.9
21.1
8.1
6.8
26.0
35.4
21.1
100.0
100.0
100.0
100.0
100.0
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
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Table 18
% value analysis
Beer
Cider/Perry
RTDs/High-Strength Premixes
Spirits
Wine
Alcoholic Drinks
Source:
Off-trade
On-trade
Total
53.3
73.6
72.4
40.2
36.1
49.8
46.7
26.4
27.6
59.8
63.9
50.2
100.0
100.0
100.0
100.0
100.0
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
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Table 19
% total volume
Company
Anheuser-Busch InBev NV
Heineken NV
Damm SA
Pernod Ricard Groupe
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2009
2010
2011
2012
2013
1.1
0.3
3.7
1.0
1.1
38.3
3.6
1.1
1.1
38.5
3.5
1.1
1.2
40.0
3.4
1.1
47.9
40.7
3.3
1.1
14
Passport
Brown-Forman Corp
Productos de Uva SA de CV
Bacardi & Co Ltd
SABMiller Plc
Grupo Cuervo SA de CV
Diageo Plc
Others
Total
Source:
0.8
0.3
0.4
0.2
0.3
0.2
91.6
100.0
0.8
0.4
0.4
0.3
0.3
0.3
53.5
100.0
0.9
0.4
0.4
0.3
0.3
0.3
53.4
100.0
0.9
0.4
0.4
0.3
0.3
0.3
51.7
100.0
0.9
0.4
0.4
0.3
0.3
0.3
4.3
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
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Table 20
% off-trade
Store-Based Retailing
- Grocery Retailers
-- Discounters
-- Food/drink/tobacco
specialists
-- Hypermarkets
-- Small Grocery
Retailers
--- Convenience Stores
--- Forecourt Retailers
--- Independent Small
Grocers
-- Supermarkets
-- Other Grocery
Retailers
- Non-Grocery Retailers
-- Parapharmacies/
Drugstores
-- Mixed Retailers
--- Department Stores
--- Mass Merchandisers
--- Variety Stores
--- Warehouse Clubs
-- Other Non-Grocery
Alcoholic Drinks
Retailers
Non-Store Retailing
- Direct Selling
- Homeshopping
- Internet Retailing
- Vending
Total
Source:
2008
2009
2010
2011
2012
2013
100.0
96.8
7.3
28.2
100.0
97.0
8.1
27.5
100.0
97.0
8.2
26.9
100.0
96.9
8.1
25.9
100.0
96.9
8.1
25.8
100.0
96.9
8.1
25.7
9.1
42.6
9.4
42.6
9.8
42.0
10.0
42.1
10.0
42.1
10.1
42.1
18.0
1.2
23.4
18.0
1.2
23.3
18.1
1.2
22.7
18.3
1.0
22.8
18.3
1.0
22.8
18.3
1.0
22.8
5.2
4.3
5.1
4.2
5.8
4.3
6.7
4.2
6.9
4.1
6.9
3.9
3.2
-
3.0
-
3.1
-
3.1
-
3.1
-
3.1
-
3.2
1.6
1.6
-
3.0
1.5
1.5
-
3.1
1.6
1.5
-
3.1
1.6
1.5
-
3.1
1.6
1.5
-
3.1
1.6
1.5
-
100.0
100.0
100.0
100.0
0.0
0.0
100.0
0.0
0.0
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
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Table 21
% off-trade
Beer Cider/Perry RTDs/HighStrength
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Spirits
Wine
15
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Premixes
Store-Based Retailing
Grocery Retailers
Discounters
Food/drink/tobacco
specialists
Hypermarkets
Small Grocery Retailers
Convenience Stores
Forecourt Retailers
Independent Small Grocers
Supermarkets
Other Grocery Retailers
Non-Grocery Retailers
Parapharmacies/Drugstores
Mixed Retailers
Department Stores
Mass Merchandisers
Variety Stores
Warehouse Clubs
Other Non-Grocery
Alcoholic Drinks
Retailers
Non-Store Retailing
Direct Selling
Homeshopping
Internet Retailing
Vending
Total
Source:
99.4
98.0
8.2
22.9
100.0
100.0
27.3
33.4
100.0
100.0
7.1
8.7
99.7
97.3
9.2
46.4
98.7
96.2
5.4
28.8
10.9
46.5
18.8
2.0
25.7
6.7
2.9
1.5
0.0
1.5
0.0
0.0
0.0
1.5
0.0
16.0
8.8
2.5
0.0
6.3
14.4
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
18.4
51.0
35.5
0.0
15.5
14.8
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
19.3
8.4
4.8
0.0
3.6
11.1
2.9
2.3
0.0
2.3
0.8
0.0
0.0
1.5
0.0
24.5
1.8
1.8
0.0
0.0
35.7
0.0
2.5
0.0
2.5
1.0
0.0
0.0
1.5
0.0
0.6
0.0
0.0
0.6
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.0
0.0
0.0
0.0
0.0
100.0
0.3
0.0
0.0
0.3
0.0
100.0
1.3
0.0
0.0
1.3
0.0
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 22
Million litres
Beer
Cider/Perry
RTDs/High-Strength
Premixes
Spirits
Wine
Alcoholic Drinks
Source:
2013
2014
2015
2016
2017
2018
6,876.3
12.7
158.2
7,065.0
13.0
162.4
7,210.8
13.2
167.8
7,411.4
13.4
173.6
7,621.3
13.6
179.6
7,839.7
13.8
185.8
242.8
76.4
7,366.4
250.2
82.1
7,572.7
258.1
88.4
7,738.3
266.5
96.1
7,961.0
275.0
104.9
8,194.4
283.3
115.1
8,437.7
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 23
MXN million
Beer
Cider/Perry
RTDs/High-Strength
Premixes
Euromonitor International
2013
2014
2015
2016
2017
2018
304,750.4
736.9
7,760.2
313,903.9
756.6
7,985.7
320,705.1
775.0
8,259.7
329,945.4
793.1
8,543.9
339,650.9
810.7
8,834.6
349,725.1
827.2
9,121.8
16
Spirits
Wine
Alcoholic Drinks
Source:
Table 24
Passport
99,700.0
22,565.8
435,513.4
104,324.7
24,663.2
451,634.0
109,234.4
27,042.8
466,017.0
114,401.0
29,983.1
483,666.6
119,654.9
33,407.7
502,358.8
124,841.3
37,463.5
521,979.0
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Beer
Cider/Perry
RTDs/High-Strength Premixes
Spirits
Wine
Alcoholic Drinks
Source:
Table 25
2017/18
2013-18 CAGR
2013/18 Total
2.9
1.3
3.4
3.1
9.7
3.0
2.7
1.6
3.3
3.1
8.6
2.8
14.0
8.5
17.4
16.7
50.7
14.5
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Beer
Cider/Perry
RTDs/High-Strength Premixes
Spirits
Wine
Alcoholic Drinks
Source:
2013-18 CAGR
2013/18 TOTAL
2.8
2.3
3.3
4.6
10.7
3.7
14.8
12.3
17.5
25.2
66.0
19.9
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
DEFINITIONS
Explanations of words or terminology used in this report are as follows:
GBO refers to Global Brand Owner, which is the ultimate owner of a brand.
NBO refers to National Brand Owner, which is the company licensed to distribute a brand on
behalf of a GBO. The NBO may be a subsidiary of a GBO or it may be a completely separate
company. Share tables at both GBO and at NBO level are provided in the report. Reference
to shares in the report analysis is at NBO level.
Alcoholmetro Drink-driving checkpoints, usually placed in areas where there are many bars
and nightclubs.
Caguama A large bottle of beer, usually containing between 940ml and 1.2 litres.
Euromonitor International
17
Passport
SOURCES
Sources used during research include the following:
Summary 1
Research Sources
Official Sources
Trade Associations
Euromonitor International
18
Passport
100 Tequila
Advertising Age Mexico
Alto Nivel
America Economa
Beverage World
Catadores
CNN Expansion
Cosmos Online
Creativa Magazine
Diario Monitor
Drinks International
Euromonitor International
19
Passport
El Economista
El Financiero
El Norte
El Porvenir
El Semanario
El Sol de Puebla
El Universal
Empresas & Empresario
Hispanic Vista Magazine
La Prensa
Marketing Up
Mural
New York Times
Noticias Vinos & Vitivinicultura
Notimex
Prensa Libre
Reforma
Revista Abarrotes & Mas
Revista ADCebra
Revista America Economia
Revista Busines Mexico
Revista Milenio
Revista Poder
Vinos & Bebidas
Wine & Spirits International
World Drink Trends
World Trade Magazine
Source:
Euromonitor International
Euromonitor International
20
Passport
Key Facts
Summary 2
Bodegas Alianza SA de CV: Key Facts
Full name of company:
Bodegas Alianza SA de CV
Address:
Tel:
Fax:
www:
www.bodegasalianza.com.
Channels of operation:
Food/drink/tobacco specialists
Retailing brands:
Bodegas Alianza
Source:
Summary 3
Net sales
Mx$396.12 million
Mx$443.5 million
Outlets
68
75
Selling space
25,500 sq m
28,170 sq m
Sales of grocery
100%
100%
Source:
Euromonitor International
21
Internet Strategy
Bodegas Alianza provides a list of product prices on its website. However, the retailer does
not currently operate an online store through which consumers can order and pay for
products. Instead, consumers can get a quote for the products they would like to purchase
through the retailers quote tool, which allows the visitors to select the items they like and
receive a total price for their would-be purchases. That quote can be also sent or personally
taken into a Bodegas Alianza outlet to help with the order in front of the counter. The website
presents links to Bodegas Alianzas Facebook and Twitter pages for consumers to review the
promotions.
Company Background
Bodegas Alianza is a privately-owned family business, independent from other holdings. The
company operates in the food/drink/tobacco specialists channel, dealing exclusively in
alcoholic drinks retailing.
Whilst it mainly offers wines, spirits, RTD/high-strength premixes and beer, the company also
sells a limited assortment of juices, energy drinks, soft drinks and snack foods which are often
consumed as a complement to alcoholic beverages.
Bodegas Alianza is a regional retailer, mainly operating in Mexico City through its 51 outlets
there. Outside Mexico City, the company also has a presence in Estado de Mxico with 24
outlets.
The company regularly implements discount price promotions on different alcoholic drinks
products in its outlets, working closely with manufacturers and distributors to organise
sampling events and other in-store promotions and mentioning special thanks in its website to
specific partners of some activities.
Private Label
Bodegas Alianza does not offer any private label of alcoholic drinks.
Competitive Positioning
Bodegas Alianza was the third leading food/drink/tobacco specialist retailer in Mexico during
2013. In terms of number of outlets during 2013 it held the second place in food/drink/tobacco
specialists by owning 75 outlets in the Mexico City metropolitan area.
Its value share in food/drink/tobacco specialists increased slightly in 2013 thanks to new outlet
openings.
Besides other specialists, Bodegas Alianza competes with vinateras (small independent
retailers that mainly sell beer and cheap locally produced spirits), supermarkets and
hypermarkets. Competition from vinateras is limited as these retailers cannot match the
range of products, prices and services that Bodegas Alianza outlets offer. Whilst
supermarkets and hypermarkets pose a greater competitive threat in terms of pricing, they
cannot compete with Bodegas Alianza when it comes to product assortment, particularly in
terms of imported wine and spirits as well as service. Another competitive advantage held by
Bodegas Alianza is that its staff is very well trained, and therefore qualified to offer assistance
Euromonitor International
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22
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and recommend the best options of alcoholic drinks to consumers depending on the occasion,
tastes and budgets.
Bodegas Alianza is positioned in the fastest-growing retail channel, which is the
food/drink/tobacco specialists channel, and is playing a strategic role with good customer
service and price promotions.
Bodegas Alianza is positioned in a mature area of the market but still a very dynamic one with
more and more presence amongst consumers.
Summary 4
Channel
Food/drink/tobacco specialists
Source:
0.8%
Key Facts
Summary 5
Casa Cuervo SA de CV: Key Facts
Full name of company:
Casa Cuervo SA de CV
Address:
Tel:
www:
www.josecuervo.com.mx
Activities:
Source:
Euromonitor International from company reports, company research, trade press, trade sources
Company Background
Casa Cuervo is an independent company which has been family owned since its birth and the
largest Mexican company in spirits that is not part of a larger international holding.
The company has been in the spirits industry since it was founded in 1795 by Don Jos
Antonio de Cuervo when he obtained a parcel of land from King Fernando VI in the land of
Euromonitor International
23
Passport
Tequila, Jalisco. Casa Cuervo has a family tradition in the spirits industry which started with
tequila and has no other industry interests.
The company has national coverage with distribution centres located in key cities from where
Casa Cuervo distributes its products nationwide.
The most recent activity of Cuervo is the closing of its contract with Diageo, which distributed
Cuervo products in the US, Greece, Canada, the UK and Spain. Now Cuervo must reorganize
to ensure continued strong distribution in these countries, particularly the US.
Production
Cuervo manufactures tequila in Mexico, more specifically in the region of Tequila, Jalisco.
Due to legal restrictions, Cuervo, like all other manufacturers, exports tequila already bottled.
Since tequila has a certificate of origin it has to be made in the region of Tequila. On the other
hand, other spirits brands like Matusalem rum and Stolichnaya vodka are brands that Cuervo
commercialises, imports and distributes. Another brand that is manufactured by Cuervo is
Castillo rum.
Cuervo exports globally to 196 countries, the most important one in terms of volume being
Mexicos neighbour, the US.
Cuervo does not have other manufacturing capacity outside the country. The companys
products were sold by Diageo in the US, but the contract ended and Cuervo allied with a new
distributor, Proximo Spirits, which will take the lead now to distribute Cuervos products in the
US. It already started with the companys tequila and Kraken rum.
The company does not manufacture brands for third parties, private label or licensed brands.
Cuervo started as a manufacturer of tequila, and tequila can only be produced in Mexico and
especially in the region of Tequila.
Summary 6
Location
Centenario
Tequila
Jos Cuervo
Don Julio
Source:
Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews
Competitive Positioning
Casa Cuervo ranked in fifth position within the alcoholic drinks industry in Mexico, accounting
for 34 million litres in 2013.
Shares of Cuervo have been growing since 2011 and especially during 2013, volume share of
Cuervo benefitted from Oxxo convenience stores sales. Matusalem rum grew strongly along
with the Kraken brand.
Casa Cuervo is positioned in fast-growing channels like convenience stores and modern
retailers with a wide portfolio that has strong brands positioned in varied channel formats.
The company is positioned in a mature market but a very dynamic one still. In fact, despite
being mature, the spirits category is proving that it can innovate and keep on having dynamic
growth.
Euromonitor International
24
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The company has many types of products for almost every type of consumer and every
budget. It has one of the most high-priced whisky brands (The Macallan) and starts with very
affordable tequila and vodka brands.
Summary 7
Product type
20.8%
Whiskies
7.8%
Vodka
43.8%
Source:
Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews
Key Facts
Summary 8
Grupo Modelo SA de CV: Key Facts
Full name of company:
Grupo Modelo SA de CV
Address:
Tel:
www:
www.gmodelo.com.mx
Activities:
Source:
Euromonitor International from company reports, company research, trade press, trade sources
Summary 9
Mx$ Million
2013
Net sales
91,203
99,297
88,603
Net profit
18,441
18,915
n/a
Number of
employees
37,307
37,379
32,934
Source:
Euromonitor International
25
Company Background
Grupo Modelo was up until June 2012 a publicly traded company on the Mexican stock
exchange; however, it was acquired by the largest beer company in the world, the Belgian
company Anheuser-Busch InBev. This recent purchase is the largest in the history of
business in Mexico, valued at US$20.1 billion.
Grupo Modelo is primarily focused on the production and sale of beer, but also has a retail
segment including the convenience store chain Extra and the drink specialist chain
Modelorama.
The company has national coverage with special brands concentrated in certain cities as
being regional brands.
The most recent and interesting news about the company is precisely the acquisition of the
remaining 50% that had not already been acquired by Anheuser-Busch InBev. After 20 years
of partnership, both companies agreed on the benefit that would result from the complete
acquisition of Grupo Modelo SA de CV and the negotiation resulted in the highest-priced
acquisition in the Mexican alcoholic drinks industry, as the price was around 4% higher than
the average price of acquisitions in the industry.
In 2013 the company announced that its Corona brand was acknowledged as the most
valuable brand in Latin America according to the ranking in BrandZ Top 50 Most Valuable
Latin American Brands 2013.
Production
Grupo Modelo produces in-country and distributes nationwide and it also exports its products
to over 180 countries globally.
Grupo Modelos facilities are only in the Mexican territory and it does not manufacture outside
the country.
The company does not manufacture brands for third parties.
The company originally is Mexican. With its recent acquisition, AB InBev demonstrates the
importance that Mexico represents in terms of consumption and production of beer. Beer is
the biggest alcoholic drinks category in terms of consumption and the expectation of AB InBev
is that the increasing middle class and increasing consumer spending will support the
categorys growth.
Competitive Positioning
For 2013, the company remained the leader in the beer category with 55% volume share.
The companys share declined in 2013 due to poor economic conditions, strong competition
from Heineken and an adjustment period due to the acquisition by AB InBev.
The company is best positioned in the domestic mid-priced lager category, which is quite
mature and expected to experience the slowest growth of any beer category over the forecast
period. Grupo Modelo is also, however, well positioned in the imported premium lager
category, which is amongst the faster-growing beer categories.
The companys portfolio, despite being focused in beer, is very wide, targeting and seeking to
satisfy every type of consumer and having strong presence in every season of the year. Its
portfolio is positioned from the low end up to the high end of the market.
Euromonitor International
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26
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Grupo Modelo, before and after being part of AB InBev, has been a leading company in
innovation strategy as well as market share. The company has been present in the Mexican
market since 1925, and that benefit has helped the company to always be aware of what the
consumers want.
Summary 10
Product type
Standard lager
55.4%
Premium lager
53.2%
Economy lager
22.3%
Imported lager
64.4%
Source:
Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews
Key Facts
Summary 11
Heineken Mxico S de RL de CV: Key Facts
Full name of company:
Heineken Mxico S de RL de CV
Address:
Tel:
www:
www.cuamoc.com
Activities:
Source:
Euromonitor International from company reports, company research, trade press, trade sources
Summary 12
Net sales
Euromonitor International
Mx$55,600 million
Mx$66,150 million
Mx$68,478 million
27
Number of
employees
Source:
18,384
Passport
17,000
18,000
Company Background
From 1890 and until 2010, Cervecera Cuauhtemoc Moctezuma was an independent
company owned by Mexicans and associated with Mexican tradition. In 2010 it was acquired
by the Dutch company Heineken with the national brand ownership changing to Heineken
Mxico S de RL de CV.
The company is focused entirely in the beer category; however, during 2013 it launched in
Mexico one of the strongest cider brands in the world, Strongbow; therefore it entered a new
category, cider/perry.
The company has national coverage with special brands concentrated in certain cities as
being regional brands from their beginnings, therefore being strong in their own regions.
In 2013 Heineken Mxico S de RL de CV entered the cider category by launching globally
leading cider brand Strongbow. This launch was strongly supported by media investment and
activities at points of sale.
In August 2013 Heineken Mxico S de RL de CV launched Tecate Titanium, widening its
portfolio even more with a very well recognised and traditional brand, but with 5.5% ADV
giving it a more intense flavour.
Production
Heineken Mxico S de RL de CV produces in-country and distributes nationwide at the same
time as it exports its products globally.
Heineken Mxico S de RL de CV has its facilities only in the Mexican territory; therefore it
does not manufacture outside Mexico.
The company does not manufacture products for third parties or for private label.
Cervecera Cuauhtemoc Moctezuma was the first brewery in Mexico and has been present in
the country since its founding. Heineken acquired the company since the importance of the
Mexican market has attracted the attention of the investors in Europe. Beer is the biggest
alcoholic drinks category in sales in Mexico and has still strong potential for growth, Mexico
being a very interesting market for beer producers.
Competitive Positioning
During 2013 Heineken Mxico owned 44% volume share, ranking second in beer, and second
overall in alcoholic drinks. With the launch of Strongbow, it is also now a player in the
cider/perry category, holding a 1% volume share for 2013 and ranking fifth.
Due to the strength of several of its core brands, including Heineken and Tecate, Heineken
Mxico grew in share during 2013, experiencing 1% volume growth compared with the 2%
decline for Grupo Modelo.
Heineken is well positioned in the premium beer segment, which is expected to continue to
experience strong growth over the forecast period, as well as flavoured/mixed lager, non/low
alcohol beer and cider/perry. The company owns the widest portfolio in the beer category in
Euromonitor International
28
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Mexico. The company is positioned in the fastest-growing channels, as its products can be
found in both modern and traditional channels.
Heineken is positioned in a mature but still dynamic area of the market. The company targets
every type of consumer, from young adults to old people, from poor to rich consumers.
The company has been a leader in terms of innovation since its first days; however, it can
play also the role of follower, and that is the main area of competition between this company
and its main competitor, which plays the same roles depending on the case.
Summary 13
Product type
Standard lager
43.4%
Premium lager
25.1%
Economy lager
23.3%
88.6%
Cider/perry
1.2%
Source:
Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews
Key Facts
Summary 14
La Madrilea SA de CV: Key Facts
Full name of company:
La Madrilea SA de CV
Address:
Tel:
www:
www.madrilena.com.mx/inicio/
Activities:
Source:
Euromonitor International from company reports, company research, trade press, trade sources
Euromonitor International
29
Company Background
La Madrilea SA de CV is a privately-held company established in 1911 and whose core
business is the production and distribution of alcoholic beverages. The company sells its own
brands of liqueurs, vodka, rum and tequila as well as well-recognised sherry, and also
distributes international brands. The companys products are available nationwide in Mexico in
supermarkets, department stores and specialist stores
La Madrilea SA de CV became the exclusive distributor of Beam Incs full portfolio of
products in Mexico, including well-known brands such as Jim Beam bourbon and Sauza tequila,
from 1 January 2012. The agreement was made as a step towards Beam Incs goal to
streamline the companys route to market and increase growth in Mexico.
Production
La Madrilea produces wine and spirits at its facilities in the states of Quertaro and Jalisco,
in Central Mexico. As of 2013, it did not export any of its products, with its total output going to
the domestic market. The company does not produce any brands under licence in Mexico
(although it does distribute multinational-owned imported brands), nor does it manufacture
private label products.
Summary 15
Location
Totoln, Jalisco
San Juan del Ro, Quertaro
Source:
Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews
Competitive Positioning
La Madrilea held less than a 1% share of total volume sales in 2013, ranking eighth in the
Mexican alcoholic drinks industry. This share has remained mostly stable over the review
period, with only marginal increases or declines in market shares in wine, spirits and RTDs/highstrength premixes. The company is expected to maintain its shares with little change in the
forecast period.
The companys sales are growing mostly in line with the growth of the categories in which it
plays. La Madrilea is positioned in several of the more mature and less dynamic areas of the
market, including wine-based RTDs, rum, fortified wine and cream-based liqueurs. However, a
strong percentage of its sales come from still light grape wine, which is a dynamic channel that
is expected to continue experiencing strong growth over the forecast period. La Madrilea is the
leader of the Mexican wine category and its share of still light grape wine has continued to grow
slowly but steadily over the review period.
Most of the companys brands have a low- or mid-priced positioning. It actively targets lowand middle-income and price-conscious consumers. Although it is not renowned as an
innovator, La Madrilea has historically been quick to recognise new trends in alcoholic drinks
and update its portfolio with imported brands that meet the changing demands of consumers,
typically following other companies.
Summary 16
Product type
Euromonitor International
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30
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Wine
21.7%
White rum
5.3%
Dark rum
17.3%
RTDs/high-strength premixes
4.2%
Source:
Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews
Key Facts
Summary 17
Pernod Ricard Mxico SA de CV: Key Facts
Full name of company:
Pernod Ricard Mxico SA de CV
Address:
Tel:
www:
www.domecq.com.mx www.pernod-ricardmexico.com
Activities:
Source:
Euromonitor International from company reports, company research, trade press, trade sources
Company Background
Pernod Ricard Mxico SA de CV has been part of the Pernod Ricard Group since 2005;
however, it is only recently, in 2012, that the name of the company became solely Pernod
Ricard Mxico with the consolidation of Casa Pedro Domecq Mxico SA de CV with Pernod
Ricard Mxico SA de CV.
The company was born to produce and distribute alcoholic beverages, and until the present
day this industry is the only one where it appears.
Pernod Ricard Mxico has national presence with wide coverage in Mexico through its own
distribution and with other distributors.
Euromonitor International
31
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The most recent and relevant news is the consolidation of Casa Pedro Domecq Mxico SA de
CV with Pernod Ricard Mxico, a decision made after a considerable downturn in sales of
13% during the first quarter of 2012.
Production
Pernod Ricard is a local distributor and producer but at the same time it is an important
importer of wine and spirits.
Pernod Ricard also exports some of its products, like tequila, to other neighbouring countries.
Pernod Ricard does not manufacture brands for third parties or private label.
Competitive Positioning
During 2013 Pernod Ricard was the third ranking alcoholic drinks company, holding 1% of the
total market volume at 87 million litres. The companys share has increased significantly since
the consolidation of Pernod Ricard Mxico SA de CV with Casa Pedro Domecq Mxico SA de
CV in 2012, jumping from marginal share of alcoholic drinks in 2011 to 1% volume share in
2013.
The company is positioned in the mature formats and channels, though its growth is still fast
in the country. Its products can be found in traditional and in modern channels and formats.
Pernod Ricard is positioned in a mature area of the market as alcoholic beverages have been
in the country for centuries now, especially the traditional tequila. However, it is still a dynamic
industry in Mexico with considerable forecast growth whilst changes of habits and trends
cause consumers in the industry to be the driving factor of its dynamism despite its maturity. It
is also well positioned in wine, which is a very dynamic category that is expected to
experience strong growth through the forecast period.
The company owns a wide product portfolio and is present in the categories of vodka, tequila,
rum, wine and RTDs amongst others.
The companys products are positioned in the mid and high end of the consumer market.
Pernod Ricard is regarded as a more traditional company in Mexico. In its former years it was
responsible for innovations in the market, but now it is more focused on buying strategic and
successful brands to follow up its success in the market.
Summary 18
Product type
Wine
13.4%
RTDs
26.4%
Spirits
14.7%
Source:
Euromonitor International from company reports, company research, trade press, trade sources, trade
interviews
Euromonitor International
32
TRENDS
There were two major stories in the Mexican beer market in 2013. The first was the complete
acquisition of Grupo Modelo by the leading Belgian company AB InBev in June 2013. The
purchase was valued at US$20.1 billion, giving AB InBev a 95% ownership stake of Grupo
Modelo. This acquisition had been prepared since 2012; however, it was delayed by an
antitrust suit in the US, where Grupo Modelos Corona brand and AB InBevs Budweiser and
Bud Light brands are amongst the top-selling brands. In order to alleviate these issues, Grupo
Modelos brands will be distributed by Constellation Brands Inc in the US, and by AB InBev in
all other countries.
Another big piece of news is the complaint that the Mexican Brewers Association started with
the Mexican Federal Competition Commission concerning the leading beer companies.
Namely, Grupo Modelo and Heineken Mxico used to buy all the barley that the Economy
Secretary allowed without tax imposed, leaving the levied barley to the artisanal smaller
breweries, and thus leaving them the problem of insufficient margins of operation after paying
those taxes. Finally this complaint resulted in the Economy Secretary making the quota of
unlevied barley three times larger to help artisanal brewers.
Finally, the other big story also concerned help for artisanal or smaller brewers against the
exclusive contracts that the leading beer companies, Grupo Modelo and Heineken Mxico,
have with small retailers and on-trade establishments. This complaint saw a resolution when
the Mexican Federal Competition Commission declared that Grupo Modelo and Heineken
Mxico must limit their exclusive contracts with small retailers to 20% or else face fines. This
resolution is intended to stop monopolistic practices in the Mexican market, which is expected
to have a positive impact on the demand for artisanal beer and possibly products of other
international players, such as SABMiller.
Growth in 2013 was slower than previous years, at -1% in volume terms. This market decline
can be attributed to the poor economic situation affecting Mexico in 2013 as well as the
restructuring of Grupo Modelo with the AB InBev acquisition.
The fastest-growing category was flavoured/mixed lager where a new product is helping the
category growth. A widely used mixed beer cocktail in the on-trade channel was taken to off-
Euromonitor International
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33
trade with Sol Clamato, where Heinekens Sol brand and Cadburys Clamato brand meet and
offer the consumers what they are asking for already in the on-trade channel but is now
available ready to drink in a metal can. Flavoured/mixed lager recorded 48% volume growth
as the basis before was not very large with only one brand leading the category.
Average unit price increased 6% in 2013 to reach Mx$44 per litre, at slightly above the rate of
inflation. Price increases were over the inflation rate due to a combination of price increases
from the major companies and a premiumisation of the category. Artisanal beers are
perceived as expensive ones, but consumers are open to trying them as they reflect a trendy
way of life and a way of supporting Mexican entrepreneurs, which is another trend amongst
consumers, especially in both wine and beer. On the other hand, imported beers also have
their own well-recognised target consumers who are looking for different products that can put
them in some aspirational status. This perception is supported by brands like Heineken,
Budweiser or Guinness; and consumers of these brands are willing to pay a higher price to
have that experience and aspirational moment, especially amongst friends.
Domestic standard lager is the biggest category, accounting for 97% of total beer volume
sales in Mexico. This category is led by the biggest beer companies in Mexico, Grupo Modelo
SA de CV and Heineken Mxico SA de CV. In terms of preferences standard lager beers are
also competing with both economy and premium lagers with new brands in the market from
Heineken and Grupo Modelo for young adults who like more premium products, but also from
artisanal domestic brewers who are aiming more and more to young adults who are willing to
pay more for artisanal beers. However, switches are not complete, since by price it is more
common that young adults drink fewer artisanal beers for the same price as more standard
premium lagers.
According to a PROFECO (Procuradura Federal del Consumidor) study from April 2013,
more men drink beer than women, though nearly 30% of women do consider themselves beer
drinkers. Younger adults, both women and men, are very likely to try standard premium lager
and some imported premium beers, but this is more in the on-trade channel as for parties and
gatherings the more frequent type of beer offered is domestic standard domestic lager.
The off-trade channel is the largest channel for beer consumption as this reflects the custom
of having beer with meals, particularly during the weekends and at parties which can be
celebrated almost every day of the week. Off-trade accounts for almost 80% of overall volume
sales in beer; however, it is more common to find artisanal beer since requirements for
entering the off-trade channel are higher and hard to meet by small artisanal brewers.
The most popular packaging in the beer category is glass bottles, 355ml being the most
popular size, and metal cans also sized 355ml. There are also some brands that sell another
option called caguama, referring to the biggest sea turtle that exists; these are bigger
presentations of glass bottles that carry up to 1.2 litres and whose packaging when empty can
be returned to stores in exchange for a refund of the deposit the consumer gave with the
purchase.
Lite/light beer is available in the country; however, it is not yet very popular, though it has
market potential as more and more Mexicans are more concerned with their diets and are
developing healthier lifestyles. These products are not very well known, and are perceived as
having an unpleasant flavour. Light beer is most popular amongst women as men still believe
light beer to be feminine; however, this trend is also changing and more young men are
beginning to consume lighter versions of their already known brands like Tecate Light, Modelo
Light, Pacfico Light, Corona Light and Bud Light.
Non/low alcohol beer is mainly lager type. Heinekens brand Sol Cero, along with its brand
extension with lemon and salt, is the most popular brand of non/low alcohol beer in Mexico,
accounting for 89% volume share of this category in 2013. However, during 2013 another
Euromonitor International
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34
non/low alcohol brand started to be mentioned more and more amongst consumers, and this
is ODouls, a brand from Grupo Modelo SA de CV which accounted for almost 10% volume
share. These non/low alcohol brands are not as easy to find as any other beer category,
reinforcing their low popularity amongst consumers.
Flavoured lagers are popular in the country, but not as popular as in Europe for example.
Flavoured lagers are mainly produced by Heineken Mxico SA de CV in the off-trade channel
with Sol Limn y Sal (Sol lemon and salt) and the recently launched brand Sol Clamato. Sol
Clamato is a joint venture brand between Heineken and Cadbury Schweppes where a very
popular cocktail in the on-trade channel made with beer and Clamato with lemon, salt and
some other condiments is now ready to drink in a Sol beer can. Flavoured lagers are very
niche products within the off-trade channel; however, popular flavoured brands are sold in
specialised restaurants which make them in an artisanal way. Flavoured beers are mainly
sold in metal cans in the off-trade channel.
Craft or artisanal beers are becoming more and more popular in Mexico and for years they
have been growing at double-digit rates. Artisanal beers grew 25% during 2013. According to
Acermex (Mexican Association of Beer), from every 879 litres produced by leading companies
Heineken Mxico and Grupo Modelo SA de CV, 1 litre is produced by the artisanal brewers
and of every 975 litres consumed in the country, 1 comes from the artisanal or craft brands.
Artisanal beer is considered to be beer that is not mass produced, and made by small
independent manufacturers. It is most popular in urban areas amongst younger adults (in their
20s and 30s).
COMPETITIVE LANDSCAPE
Grupo Modelo SA de CV was the leading company during 2013 with 55% share of total
volume sales, followed by Heineken Mxico with 44% share of volume sales. Grupo Modelo
was recently bought by Anheuser Busch, the leading beer company across the world, and its
seventh production plant is the worlds most automated beer brewery and bottling facility in
Euromonitor International
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35
the world to date, which has benefitted the companys operation costs, reducing them by
around 40%. Both companies practically dominate the entire beer category with both
domestic and imported brands and a very varied portfolio with leading brands in very specific
regions and nationwide, and these companies benefit from strongly positioned brands in
consumers minds and from long-term presence in Mexico.
Many craft brewers are strongly positioned amongst their consumers and in their respective
areas of sales, as these types of brewers usually have no easy ways of distributing their
products across the country, thus staying in their production cities and maybe some nearby
ones. The leader in craft beers is Cervecera Minerva with estimated sales of 1.5 million litres
during 2013, followed by Andreu Primus with estimated sales of 0.68 million litres during
2013. According to Acermex (Mexican Association of Beer) there are around 153 brands of
artisanal beers in Mexico and the bulk of craft beers are in the states of Baja California Norte
and Baja California Sur in the North of Mexico as well as Mexico City and Estado de Mxico,
which are in the central part of Mexico. Mexican legislation levies beer with a duty around
42% of the value selling price and this situation, along with the small or practically negligible
economies of scale in the craft brewers, give this type of beer in much higher prices than
traditional beer, thus making it almost impossible for craft breweries to compete in terms of
price with Grupo Modelo and Heineken products.
Heineken Mxico had a much stronger performance in 2013 than Grupo Modelo, increasing
by 1% versus Modelos 2% volume decline. Heinekens growth can be attributed to strong
performances of several major brands including Heineken, Tecate Light and Dos Equis.
As mentioned earlier, the leading companies in the beer category in Mexico are Grupo
Modelo SA de CV, recently bought by leading Belgian beer company Anheuser Busch InBev,
and Heineken Mxico SA de CV accounting together for 99% share of volume sales in
Mexico. The remaining domestically held manufacturers are therefore very small in volume
terms compared to international manufacturers.
One key new launch was made by Heineken Mxico SA de CV with its very popular brand
Tecate, which launched a brand extension with higher ABV of 5.5% when most brands and
even the traditional Tecate brand have 4.5% ABV. Tecate Titanium is aimed to premium
consumers, especially amongst men, which its mass media ads are targeting. Tecate
Titanium is for young adults who like to have more intense flavours and is sold only in metal
355ml cans.
Mid-priced brands lead the beer category, with major mid-priced brands dominating selling
space across different retail channels and on-trade establishments. Mid-priced brands
compete with price promotions or merchandising to gain consumers choice at the points of
sale. Economy brands compete with price promotions most of the time and premium brands
compete with experiences and events, especially imported premium brands, and domestic
premium brands compete by offering varied products and flavours with high-quality products.
In Mexico there were 46 craft breweries with around 153 brands of beers during 2013, though
they made up less than 1% volume share of total beer sales. It is important to mention that
craft brewers have grown fast over recent years, having double- and even triple-digit sales
growth in many years, and with the anti-exclusivity rulings are expected to gain importance in
the beer category in coming years.
Private label beer is almost negligible with the only notable private label being Walmarts
private label, Dorada Premium Quality, which was launched in mid-2012. This beer is
manufactured by Cervecera Centroamericana, a Guatemalan brewer, and is made to
compete in the premium segment where brands like Heineken, Budweiser, Negra Modelo and
Bohemia compete, but Dorada is competing with lower price of Mx$25 per glass bottle of
350ml.
Euromonitor International
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36
The biggest story about mergers and acquisitions happened with Grupo Modelo SA de CV
when it was acquired by leading Belgian beer company Anheuser Busch InBev in June 2013
in the biggest purchase in the beer industry, valued at US$20.1 billion. The already strong
position of Grupo Modelo leading the Mexican beer category was strengthened even more
with this acquisition, in which the globally leading company AB InBev strengthened its
portfolio with successful brands like Corona, Pacfico and Victoria amongst others, joined with
the successful strategies of its established brands like Budweiser, Bud Light, Carlsberg and
ODouls, all of which are seen more and more often in on-trade channels in Mexico.
PROSPECTS
As now the leading companies in Mexico are international companies, there are expected to
be stronger promotional efforts for beer in mass media and stronger competition at the points
of sale. Fortunately for the domestic artisanal brands, the recently published law from the
Federal Competition Commission in Mexico will help reduce significantly the extent of the
exclusive contracts that Grupo Modelo SA de CV and Heineken Mxico are used to signing
with their principal clients. This law mentions that the exclusive contracts shall not be used
with more than 20% of their clients, and for many artisanal brewers this is a positive step
allowing them the ability to compete more strongly in the market, especially in the on-trade
channel.
Beer in Mexico is expected to grow at 3% CAGR in volume terms and 3% value CAGR at
constant 2013 prices to reach Mx$350 billion in 2018. This expected growth is mainly due to
the expected performance of both the leading companies and the artisanal/craft brands over
the forecast period, which is expected to keep on seeing double-digit growth in the coming
years.
Growth rates are expected to rise due to higher competition amongst the biggest leading
companies, stronger presence and consumption trends in artisanal/craft beers and the
entrance of even more competitors in the artisanal/craft beer segment, especially due to more
support from competition laws and increasing demand.
The main potential forecast threats to growth would be new laws that put higher levies on malt
and barley, and economic downturns or any adverse economic situation in the country that
would make consumers lower their going out habits and on-trade consumption or change
from more premium beers, both traditional and artisanal ones, to consume lower-price brands.
Ultimately another potential risk, which is being considered by governors who have made
comments about this but have not gone further on the proposal, is to raise the legal age of
consuming alcohol to 21 when in Mexico it is now 18.
Non/low alcohol beer is expected to produce better performance over the forecast period as it
is an incompletely developed category, and it has been supported by temporary laws that
remove the taxes on them to promote their consumption.
Average unit price is expected to grow 2% until 2018 in constant value terms, flavoured/mixed
lager being the only one with a slight decrease in average unit price of -1% until 2018 due to a
more competitive environment in the category and the expected entrance of new brands.
Tecate Titanium is expected to perform well as it comes from a very popular brand, the
leading brand amongst young men consumers, and a very representative brand with metal
can packaging. As its flagship claim is stronger intensity of flavour and it comes with strong
marketing in mass media and on-trade efforts, it is expected to keep on growing and bringing
more volume to the Tecate brand.
Euromonitor International
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37
Passport
Potential company activity is expected to go into stronger social network efforts to link brands
more with younger adults and harder price promotions in the off-trade channel. Another
expected activity is companies investing efforts in keeping consumers attracted to the
premium beers as an aspirational trend but still keeping strong competitive promotions for the
economy and mid-priced products whose consumers have been loyal for years, especially
amongst the older adults.
The off-trade channel is expected to grow at 3% CAGR in volume terms for the forecast
period and the on-trade channel is expected to grow at 2% CAGR in volume terms. This
situation is supported by the fact that most consumption of beer takes place in the off-trade
channel and this trend is expected to continue, although not very far ahead of on-trade
growth, which will benefit from the new legislation prohibiting exclusive contracts in the
majority of the on-trade outlets. Consumers are expected to continue having beer as the notto-be-missed alcoholic drink at house parties.
CATEGORY BACKGROUND
Lager Price Band Methodology
Standard lager is the largest beer segment in Mexico and it is where most popular Mexican
brands like Corona, Victoria, Pacfico, Modelo and Estrella from Grupo Modelo SA de CV are
positioned, as well as Tecate, Sol and Carta Blanca from Heineken Mxico.
Economy lager is where brands like Tropical Light from Grupo Modelo SA de CV and Kloster
from Heineken Mxico are positioned.
Premium brands are the next most sought-after brands after standard lager, and their
consumption trend is increasing amongst younger adults who seek aspirational products in
many alcoholic drinks. Inside the premium sector are imported and domestic brands like
Tempus, La Ch, Cucap and Minerva from artisanal brewers; Heineken and Bohemia from
Heineken Mxico; and Miller, Budweiser and Coors Light from Miller Trading Co and Grupo
Modelo SA de CV.
Recently launched brand Tecate Titanium is the only brand where alcohol content is
positioned as a differentiator beyond the flavour, type or price elements. With 5.5% ABV,
Tecate Titanium is sold only in metal cans and advertised under the umbrella slogan for
those who seek more intensity. Its main target is young male adults.
Summary 19
Category
Premium
Above Mx$45.00
Mid-priced
Mx$25.00-MX$43.50
Economy
Mx$17.00-MX$19.00
Source:
Note:
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Price bands for lager are based primarily on price, but positioning and packaging are other factors that
are considered in classification.
Euromonitor International
38
Passport
CATEGORY DATA
Table 26
million litres
Dark Beer
- Ale
- Sorghum
- Weissbier/Wiezen/
Wheat Beer
Lager
- Flavoured/Mixed Lager
- Standard Lager
-- Premium Lager
--- Domestic Premium
Lager
--- Imported Premium
Lager
-- Mid-Priced Lager
--- Domestic Mid-Priced
Lager
--- Imported Mid-Priced
Lager
-- Economy Lager
--- Domestic Economy
Lager
--- Imported Economy
Lager
Non/Low Alcohol Beer
Stout
Beer
Source:
2008
2009
2010
2011
2012
2013
6,458.3
3.3
6,455.1
162.7
15.5
6,535.1
23.6
6,511.5
156.8
18.3
6,387.2
22.1
6,365.1
155.9
19.8
6,777.1
22.3
6,754.7
164.9
41.0
6,919.4
22.8
6,896.6
175.1
43.4
6,862.7
33.7
6,829.0
185.1
46.2
147.2
138.5
136.1
123.9
131.8
138.9
6,270.8
6,270.8
6,332.9
6,332.9
6,184.7
6,184.7
6,565.0
6,565.0
6,695.1
6,695.1
6,616.6
6,616.6
21.6
11.6
21.8
12.0
24.5
12.1
24.8
12.7
26.3
13.0
27.3
13.4
10.0
9.8
12.4
12.1
13.3
14.0
9.6
6,467.9
10.5
6,545.5
10.4
6,397.6
11.4
6,788.5
12.5
6,931.9
13.6
6,876.3
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 27
MXN million
Dark Beer
- Ale
- Sorghum
- Weissbier/Wiezen/
Wheat Beer
Lager
- Flavoured/Mixed Lager
- Standard Lager
-- Premium Lager
--- Domestic Premium
Lager
--- Imported Premium
Lager
-- Mid-Priced Lager
--- Domestic Mid-Priced
Lager
--- Imported Mid-Priced
Euromonitor International
2008
2009
2010
2011
2012
2013
219,605.9
52.2
219,553.7
6,916.7
868.0
232,100.8
397.8
231,702.9
7,046.0
1,023.2
241,084.2
397.5
240,686.7
7,997.7
1,119.8
268,607.3
415.3
268,191.9
9,223.8
2,419.2
290,444.4
432.9
290,011.5
10,425.7
2,733.5
304,330.8
656.1
303,674.7
11,792.6
3,097.0
6,048.6
6,022.9
6,877.9
6,804.6
7,692.2
8,695.6
212,322.2
212,322.2
224,307.3
224,307.3
232,291.5
232,291.5
258,563.0
258,563.0
279,133.6
279,133.6
291,390.4
291,390.4
39
Lager
-- Economy Lager
--- Domestic Economy
Lager
--- Imported Economy
Lager
Non/Low Alcohol Beer
Stout
Beer
Source:
Table 28
Passport
314.8
178.7
349.7
211.6
397.5
212.8
405.1
216.7
452.1
236.0
491.7
253.0
136.1
138.1
184.8
188.4
216.1
238.7
238.9
219,844.8
279.8
232,380.6
285.9
241,370.1
325.6
268,932.9
371.2
290,815.6
419.7
304,750.4
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Dark Beer
- Ale
- Sorghum
- Weissbier/Wiezen/Wheat Beer
Lager
- Flavoured/Mixed Lager
- Standard Lager
-- Premium Lager
--- Domestic Premium Lager
--- Imported Premium Lager
-- Mid-Priced Lager
--- Domestic Mid-Priced Lager
--- Imported Mid-Priced Lager
-- Economy Lager
--- Domestic Economy Lager
--- Imported Economy Lager
Non/Low Alcohol Beer
Stout
Beer
Source:
Table 29
2012/13
2008-13 CAGR
2008/13 Total
-0.8
47.6
-1.0
5.7
6.5
5.4
-1.2
-1.2
3.9
2.5
5.2
8.8
-0.8
1.2
59.3
1.1
2.6
24.5
-1.2
1.1
1.1
4.8
2.9
6.9
7.3
1.2
6.3
924.3
5.8
13.8
198.7
-5.6
5.5
5.5
26.4
15.1
39.5
42.1
6.3
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Dark Beer
- Ale
- Sorghum
- Weissbier/Wiezen/Wheat Beer
Lager
- Flavoured/Mixed Lager
- Standard Lager
-- Premium Lager
--- Domestic Premium Lager
--- Imported Premium Lager
-- Mid-Priced Lager
--- Domestic Mid-Priced Lager
Euromonitor International
2012/13
2008-13 CAGR
2008/13 Total
4.8
51.5
4.7
13.1
13.3
13.0
4.4
4.4
6.7
65.9
6.7
11.3
29.0
7.5
6.5
6.5
38.6
1,157.7
38.3
70.5
256.8
43.8
37.2
37.2
40
Passport
8.7
7.2
10.4
13.1
4.8
9.3
7.2
11.9
11.9
6.7
56.2
41.5
75.4
75.6
38.6
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 30
million litres
Off-trade
On-trade
Total
Source:
2008
2009
2010
2011
2012
2013
5,093.1
1,374.8
6,467.9
5,217.3
1,328.3
6,545.5
5,066.5
1,331.1
6,397.6
5,356.8
1,431.8
6,788.5
5,464.6
1,467.3
6,931.9
5,425.6
1,450.7
6,876.3
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 31
MXN million
Off-trade
On-trade
Total
Source:
2008
2009
2010
2011
2012
2013
115,345.3
104,499.5
219,844.8
125,473.7
106,906.9
232,380.6
130,352.6
111,017.5
241,370.1
144,688.2
124,244.7
268,932.9
155,705.4
135,110.2
290,815.6
162,455.9
142,294.5
304,750.4
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 32
% volume growth
Off-trade
On-trade
Total
Source:
Table 33
2012/13
2008-13 CAGR
2008/13 TOTAL
-0.7
-1.1
-0.8
1.3
1.1
1.2
6.5
5.5
6.3
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Off-trade
On-trade
Total
Source:
2012/13
2008-13 CAGR
2008/13 TOTAL
4.3
5.3
4.8
7.1
6.4
6.7
40.8
36.2
38.6
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
41
Table 34
Passport
% total volume
Company
Anheuser-Busch InBev NV
Heineken NV
Damm SA
SABMiller Plc
Cervecera
Centroamericana SA
Molson Coors Brewing Co
Modelo SA de CV, Grupo
FEMSA (Fomento
Economico Mexicano SA
de CV)
Anheuser-Busch Cos Inc
Others
Total
Source:
2011
2012
2013
1.2
0.3
4.0
0.3
0.1
1.1
40.9
3.8
0.4
0.2
1.2
41.0
3.8
0.3
0.2
1.3
42.8
3.6
0.4
0.2
51.3
43.6
3.5
0.4
0.2
0.2
51.7
41.4
0.1
52.6
-
0.1
52.5
-
0.1
50.8
-
0.1
-
0.9
100.0
0.9
100.0
0.9
100.0
0.9
100.0
0.9
100.0
% total volume
Company
Modelo SA de CV, Grupo
Heineken Mxico S de RL
de CV
Miller Trading Co SA de
CV
Cervecera
Centroamericana SA
Cervecera Cuauhtemoc
Moctezuma SA de CV
Herdez SA de CV, Grupo
Others
Total
Table 36
2010
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 35
Source:
2009
2009
2010
2011
2012
2013
56.9
0.3
57.6
41.0
57.6
41.1
55.8
42.9
55.0
43.7
0.3
0.4
0.3
0.4
0.4
0.1
0.2
0.2
0.2
0.2
41.6
0.8
100.0
0.8
100.0
0.8
100.0
0.8
100.0
0.7
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
% total volume
Brand (Global Brand
Owner)
Corona Extra
(Anheuser-Busch
InBev NV)
Victoria (AnheuserBusch InBev NV)
Sol (Heineken NV)
Euromonitor International
Company
2010
2011
2012
2013
20.4
15.2
Heineken Mxico S de RL
11.5
11.3
11.5
11.5
42
Tecate Light
(Heineken NV)
Tecate (Heineken NV)
Modelo Especial
(Anheuser-Busch
InBev NV)
Carta Blanca
(Heineken NV)
Estrella (Damm SA)
Corona Barrilito
(Anheuser-Busch
InBev NV)
Superior (Heineken
NV)
Corona Extra
Victoria
Modelo Especial
Corona Barrilito
Others
Total
Source:
Passport
de CV
Heineken Mxico S de RL
de CV
Heineken Mxico S de RL
de CV
Modelo SA de CV, Grupo
9.0
9.7
10.8
11.0
7.2
7.1
7.4
7.5
6.1
Heineken Mxico S de RL
de CV
Modelo SA de CV, Grupo
Modelo SA de CV, Grupo
5.5
5.3
5.3
5.3
3.8
-
3.8
-
3.6
-
3.5
3.3
Heineken Mxico S de RL
de CV
Modelo SA de CV, Grupo
Modelo SA de CV, Grupo
Modelo SA de CV, Grupo
Modelo SA de CV, Grupo
Others
Total
2.5
2.4
2.4
2.5
21.4
15.8
6.6
3.5
13.2
100.0
21.3
16.0
6.5
3.5
13.1
100.0
20.7
15.6
6.2
3.3
13.2
100.0
13.6
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 37
Million litres
Beer Production
Beer Apparent
consumption
Beer Exports
Beer Imports
Source:
Note:
2007
2008
2009
2010
2011
2012
8,051.6
6,256.5
8,158.1
6,280.2
8,220.7
7,603.9
7,991.6
6,542.7
8,474.8
6,459.4
8,643.1
6,380.0
1,937.4
142.3
2,026.9
148.9
748.5
131.7
1,577.9
129.0
2,148.3
132.9
2,403.6
140.5
Table 38
million litres
Beer US
Beer Guatemala
Beer Germany
Beer Netherlands
Beer Portugal
Beer Belgium
Beer Spain
Beer Denmark
Beer Ireland
Beer United Kingdom
Beer Canada
Beer China
Beer Argentina
Beer Czech Republic
Euromonitor International
2007
2008
2009
2010
2011
2012
125.4
10.5
0.6
4.0
0.6
0.3
0.0
0.1
0.0
0.2
0.1
0.0
0.0
131.2
12.0
0.5
4.0
0.2
0.2
0.0
0.2
0.0
0.1
0.1
0.1
0.0
116.0
10.2
0.5
3.7
0.0
0.1
0.1
0.0
0.3
0.1
0.1
0.1
0.1
0.0
105.9
16.8
0.7
3.6
0.7
0.3
0.1
0.0
0.3
0.1
0.1
0.1
0.1
0.0
117.8
10.3
1.0
1.1
0.9
0.3
0.2
0.0
0.4
0.2
0.2
0.1
0.1
0.1
122.5
12.6
1.3
1.3
0.7
0.4
0.3
0.2
0.2
0.2
0.2
0.2
0.1
0.1
43
Beer Uruguay
Beer Cuba
Beer Russia
Beer Italy
Beer France
Beer Thailand
Beer Japan
Beer Colombia
Beer Chile
Beer Poland
Beer Korea, South
Beer Others
Beer Total
Source:
Note:
Passport
0.1
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.1
0.0
142.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
148.9
0.0
0.0
0.0
0.0
0.0
0.0
0.3
0.0
131.7
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
129.0
0.0
0.0
0.0
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
132.9
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
140.5
Table 39
MX$ million
Beer US
Beer Guatemala
Beer Germany
Beer Netherlands
Beer Belgium
Beer Portugal
Beer United Kingdom
Beer Spain
Beer Canada
Beer Ireland
Beer China
Beer Denmark
Beer Argentina
Beer Czech Republic
Beer Uruguay
Beer Cuba
Beer Russia
Beer Italy
Beer Japan
Beer Thailand
Beer France
Beer Austria
Beer Chile
Beer Colombia
Beer Korea, South
Beer Others
Beer Total
Source:
Note:
2007
2008
2009
2010
2011
2012
1,027.0
55.6
9.9
38.5
6.6
0.7
3.7
2.8
2.2
1.1
0.0
0.4
0.0
0.9
0.1
0.3
0.1
1.5
2.2
0.2
0.0
1.3
1,155.1
1,174.5
69.1
9.4
47.5
4.6
1.3
3.0
3.1
2.4
1.7
0.0
0.8
0.0
0.3
0.0
0.5
0.3
0.5
0.1
0.0
0.2
2.1
1,321.2
1,306.8
78.9
11.0
50.0
5.4
0.1
2.0
1.7
3.2
4.7
1.2
0.0
0.9
0.1
0.5
0.0
0.5
0.1
0.3
0.3
0.0
4.9
1,472.4
1,151.2
118.3
13.6
46.2
9.4
11.1
3.9
1.2
3.6
5.5
1.1
0.2
1.1
0.5
0.5
0.4
0.1
0.7
0.2
0.2
0.1
0.1
0.0
0.0
1.1
1,370.4
1,319.2
73.3
20.4
18.6
12.8
14.2
5.5
3.7
4.0
6.4
1.1
0.7
1.5
1.1
0.8
0.8
0.4
1.0
0.1
0.3
0.2
0.0
0.1
0.4
0.0
0.0
1,486.4
1,493.6
99.9
26.3
25.1
15.5
12.4
6.7
6.7
6.2
4.1
3.0
2.9
1.7
1.2
1.1
0.9
0.6
0.5
0.3
0.3
0.3
0.1
0.1
0.1
0.3
1,709.9
Table 40
million litres
Beer US
Euromonitor International
2007
2008
2009
2010
2011
2012
1,623.5
1,654.5
401.3
1,213.2
1,745.1
1,858.2
44
Passport
49.4
67.9
42.1
7.8
12.5
18.1
7.8
5.9
2.5
6.7
9.5
4.1
4.7
4.3
7.2
1.3
3.3
2.2
2.1
0.2
0.2
1.2
59.8
89.3
52.9
12.6
11.0
19.0
8.7
5.7
4.5
6.7
10.0
4.1
4.1
5.6
9.7
2.1
3.3
1.7
2.3
0.2
0.2
2.5
61.7
67.2
50.7
11.7
14.6
24.0
7.7
6.0
6.2
6.5
9.1
4.0
4.2
4.7
9.0
3.1
3.5
2.2
2.8
0.3
2.4
62.3
61.1
59.3
21.7
16.8
22.1
8.0
8.6
7.9
6.1
6.0
4.2
5.3
4.1
7.5
3.2
3.6
2.8
3.0
0.3
3.0
67.9
55.6
69.4
33.6
16.3
18.3
9.6
10.2
11.7
4.8
6.7
4.5
5.0
5.5
4.0
4.7
4.6
3.5
4.7
4.6
4.7
3.1
128.4
100.2
75.9
41.7
19.4
17.6
9.8
9.6
9.4
8.2
7.6
5.6
5.6
5.6
5.1
4.9
4.8
4.6
4.1
3.6
3.5
3.5
3.8
2.3
47.0
1,937.4
3.6
2.3
50.4
2,026.9
2.1
2.6
40.7
748.5
2.1
3.4
42.5
1,577.9
2.8
3.2
44.3
2,148.3
3.3
3.3
59.9
2,403.6
Table 41
MX$ million
Beer US
Beer Australia
Beer Canada
Beer United Kingdom
Beer Chile
Beer Italy
Beer Spain
Beer New Zealand
Beer Japan
Beer Argentina
Beer Puerto Rico (U.S.)
Beer China
Beer Guatemala
Beer Netherlands
Beer France
Beer Germany
Beer Honduras
Beer Sweden
Beer Panama
Beer Greece
Beer Colombia
Beer Norway
Beer United Arab
Emirates
Euromonitor International
2007
2008
2009
2010
2011
2012
16,105.4
441.7
887.8
540.7
62.4
138.8
203.5
85.1
73.5
22.7
92.3
70.2
35.0
36.1
44.7
51.4
37.8
24.2
12.9
3.7
19.2
17.7
12.8
15,989.7
696.8
781.0
684.9
107.8
129.4
219.4
125.4
79.4
47.2
103.4
101.4
35.6
38.3
48.0
47.1
48.4
28.7
22.7
3.9
15.5
26.5
27.7
4,738.5
1,019.3
944.3
844.1
123.3
205.4
336.2
151.5
94.7
78.7
121.2
123.0
50.1
49.8
56.8
59.4
50.6
42.3
40.9
23.6
36.9
33.0
14,552.0
1,071.3
802.6
719.8
218.8
191.9
242.7
141.4
88.3
96.4
81.7
97.1
68.8
42.3
46.5
58.8
38.9
36.4
37.2
28.0
31.0
32.8
19,920.7
1,249.6
714.9
821.2
328.9
185.1
208.1
164.3
76.8
139.8
93.2
69.0
83.3
60.2
53.5
60.0
52.6
57.1
48.5
54.8
33.8
31.8
37.9
21,855.8
1,556.0
784.7
719.0
532.5
213.3
190.4
187.9
143.2
126.9
120.3
97.2
88.5
63.3
62.7
60.8
57.1
48.1
47.3
45.7
44.1
44.0
39.4
45
Passport
Beer Brazil
Beer Austria
Beer Others
Beer Total
Source:
Note:
1.5
25.0
505.1
19,550.9
2.2
26.8
533.3
19,970.6
4.1
36.1
522.0
9,785.7
2.9
37.1
481.4
19,246.4
45.0
35.9
518.8
25,144.8
35.8
35.7
722.0
27,921.6
Table 42
million litres
Dark Beer
- Ale
- Sorghum
- Weissbier/Wiezen/
Wheat Beer
Lager
- Flavoured/Mixed Lager
- Standard Lager
-- Premium Lager
--- Domestic Premium
Lager
--- Imported Premium
Lager
-- Mid-Priced Lager
--- Domestic Mid-Priced
Lager
--- Imported Mid-Priced
Lager
-- Economy Lager
--- Domestic Economy
Lager
--- Imported Economy
Lager
Non/Low Alcohol Beer
Stout
Beer
Source:
2013
2014
2015
2016
2017
2018
6,862.7
33.7
6,829.0
185.1
46.2
7,050.2
35.6
7,014.6
196.7
48.7
7,194.6
37.1
7,157.5
207.6
50.9
7,393.7
38.4
7,355.3
219.8
53.6
7,601.9
39.6
7,562.2
232.1
56.5
7,818.4
40.9
7,777.4
244.9
59.4
138.9
148.0
156.8
166.2
175.7
185.5
6,616.6
6,616.6
6,789.3
6,789.3
6,920.3
6,920.3
7,104.8
7,104.8
7,298.2
7,298.2
7,499.3
7,499.3
27.3
13.4
28.5
13.8
29.5
14.1
30.7
14.4
31.9
14.9
33.3
15.3
14.0
14.8
15.5
16.3
17.1
17.9
13.6
6,876.3
14.8
7,065.0
16.2
7,210.8
17.7
7,411.4
19.4
7,621.3
21.3
7,839.7
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 43
MXN million
Dark Beer
- Ale
- Sorghum
- Weissbier/Wiezen/
Wheat Beer
Lager
- Flavoured/Mixed Lager
- Standard Lager
-- Premium Lager
--- Domestic Premium
Lager
Euromonitor International
2013
2014
2015
2016
2017
2018
304,330.8
656.1
303,674.7
11,792.6
3,097.0
313,444.7
676.5
312,768.2
12,716.1
3,311.6
320,202.6
698.6
319,504.0
13,610.9
3,495.2
329,394.5
722.4
328,672.1
14,605.1
3,722.2
339,045.9
747.8
338,298.1
15,627.4
3,960.5
349,058.9
773.9
348,285.0
16,711.5
4,209.8
46
Table 44
Passport
8,695.6
9,404.5
10,115.6
10,882.9
11,666.9
12,501.7
291,390.4
291,390.4
299,534.6
299,534.6
305,353.2
305,353.2
313,500.6
313,500.6
322,075.6
322,075.6
330,947.6
330,947.6
491.7
253.0
517.5
262.7
540.0
270.5
566.3
280.5
595.1
291.9
625.9
304.5
238.7
254.8
269.5
285.8
303.2
321.4
419.7
304,750.4
459.1
313,903.9
502.5
320,705.1
550.9
329,945.4
605.0
339,650.9
666.2
349,725.1
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Dark Beer
- Ale
- Sorghum
- Weissbier/Wiezen/Wheat Beer
Lager
- Flavoured/Mixed Lager
- Standard Lager
-- Premium Lager
--- Domestic Premium Lager
--- Imported Premium Lager
-- Mid-Priced Lager
--- Domestic Mid-Priced Lager
--- Imported Mid-Priced Lager
-- Economy Lager
--- Domestic Economy Lager
--- Imported Economy Lager
Non/Low Alcohol Beer
Stout
Beer
Source:
Table 45
2017/18
2013-18 CAGR
2013/18 Total
2.8
3.3
2.8
5.5
5.3
5.6
2.8
2.8
4.1
3.1
5.0
9.9
2.9
2.6
4.0
2.6
5.8
5.2
6.0
2.5
2.5
4.0
2.8
5.1
9.5
2.7
13.9
21.5
13.9
32.3
28.7
33.6
13.3
13.3
21.8
14.8
28.4
57.2
14.0
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Dark Beer
- Ale
- Sorghum
- Weissbier/Wiezen/Wheat Beer
Lager
- Flavoured/Mixed Lager
Euromonitor International
2013-18 CAGR
2013/18 TOTAL
2.8
3.4
14.7
18.0
47
- Standard Lager
-- Premium Lager
--- Domestic Premium Lager
--- Imported Premium Lager
-- Mid-Priced Lager
--- Domestic Mid-Priced Lager
--- Imported Mid-Priced Lager
-- Economy Lager
--- Domestic Economy Lager
--- Imported Economy Lager
Non/Low Alcohol Beer
Stout
Beer
Source:
Passport
2.8
7.2
6.3
7.5
2.6
2.6
4.9
3.8
6.1
9.7
2.8
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Euromonitor International
14.7
41.7
35.9
43.8
13.6
13.6
27.3
20.3
34.7
58.7
14.8
48
TRENDS
Cider/perry is trying to get out of the stigmatisation of being a category only for the Christmas
and New Years season. This is a consequence of the recent launch of Heineken Mxico SA
de CVs Strongbow brand, a globally leading cider that is trying to move the category in
Mexico to an all-season one. This effect is expected to expand across the category,
benefitting all competitors within it. And this situation is letting itself be seen, as smaller
competitors are now launching cider, traditionally offered in 1-litre size, in smaller ready-todrink bottles.
Growth of the cider/perry category in 2013 was faster than in previous years when the
category was declining in popularity and mostly only consumed during the winter and
amongst older adults. However, due to the entrance of a new brand, Strongbow, the category
grew faster to reach 2% volume growth during 2013.
Average unit price grew 4% in 2013 to reach Mx$58 per litre. This growth is according to the
categorys historic performance at slightly over the inflation rate in Mexico. Cider/perrys
consumers are very much linked to the category precisely due to the fact that it represents a
less costly way of celebrating than sparkling wine or champagne.
Key consumers of cider are mainly adults, both men and women; however, it is more common
to see men consuming it. This category is mainly consumed by low- and middle-income
consumers, especially during winter holidays like Christmas and New Years. Having
cider/perry during the winter season celebrations has been a long-term tradition for many
years now, but this tradition is carried on more by older adults than younger ones because
these younger adults are more eager to try new beverages, flavours and products. This
situation has benefitted for example the wine and spirits categories.
Apple is the most important flavour within cider/perry in Mexico. An example of this is the fact
that many popular cities and towns in Mexico where large amounts of apples are produced
are also famous for their cider production. Therefore it is very common to link cider with
apples.
Euromonitor International
Passport
49
COMPETITIVE LANDSCAPE
Valle Redondo is the leading company with 37% volume share with its leading brands
Campanario, Santa Claus and Valle Redondo, Campanario being the owner of 24% volume
share in 2013.
Being a very stable category with traditional consumption patterns by its consumers,
cider/perry did not have important increases or decreases amongst companies or brands, the
only interesting movement being the share gain of Strongbow. As Strongbow is positioned
completely differently than other brands of cider, it is not really stealing share from other
brands but rather attracting new consumers, growing the category overall.
As most of the sales are domestic, international brands are not significant in the cider/perry
category, with the recent exception of Strongbow, but having just been introduced in the
market, its performance against domestic ciders has yet to be seen during the forecast period.
Also, a possible positive effect on other cider competitors is expected to be seen after the
launch of Strongbow in Mexico.
The key new launch was Strongbow; despite being launched at the end of 2012, its
advertising efforts and strong media campaigns were held during 2013. Strongbow is a cider
with a taste very different from what Mexicans are used to in terms of cider. Strongbow is
unsweetened and Mexican cider is a sweet sparkling alcoholic drink. This is the first challenge
that Strongbow confronts; but the benefit that Strongbow flagships with this unsweetened
flavour is that it can be consumed all year round despite being a cider. Also, this new launch
is expected to make the categorys players move to smaller personal sizes, therefore trying to
appeal again to younger adults.
No new packaging innovations were detected in the review period.
Cider/perry products compete usually on price. Only at cider festivals, they also compete on
flavour, but usually ciders are exhibited during the winter season in off-trade channels and are
always displayed with their price tags very visible to let consumers know about them and
make the purchase decision. Most cider brands are in the mid-priced segment and targeted to
low- and middle-income consumers who celebrate with cider instead of more expensive
sparkling wine or champagne.
No private label products were detected during the review period for cider/perry.
Euromonitor International
Passport
50
PROSPECTS
With the recent launch of a new type of cider, aimed to a different type of consumers and sold
in more personal sizes, cider/perry volume is expected to increase slightly over the forecast
period, making cider/perry probably re-enter competition with other alcoholic beverages sold
in personal sizes all year round like flavoured beer and RTDs. However, the performance of
new ciders with less sweet taste, unlike the typical Mexican taste, is yet to be seen, and
maybe it will be a successful case study of how this taste appeal will be a factor in the growth
of the category with new players reinventing it.
Cider/perry is expected to perform at a good 2% volume CAGR over the forecast period with
the new sizes and presentations along with new moments of consumption introduced by new
players, a situation that is expected to be followed by traditional cider companies that are
more used to seasonal sales. This expected volume CAGR is a very good one considering
the negative volume growth that the category has been recording in the review period.
Positive growth rates in the coming years will be driven by efforts amongst companies
focusing on attracting young adults in competition with other alcoholic drinks like beer, some
spirits and cocktails, thus reinstating cider/perry amongst modern consumer trends.
Cider/perry players are expected to focus on positioning cider/perry as an everyday category
and no more only a seasonal one, but without killing the seasonality appeal from which the
main volume comes.
A very specific threat that the category entails is the price difference that it has compared to
other categories like RTDs or even more, flavoured/artisanal beers. Competing for young
adults preferences also involves competing for their out-of-pocket money. Another threat that
cider/perry confronts would be any drought or bad situation in the crop of apples that might
occur and therefore affect prices of apples and cider, especially amongst the more
traditional/artisanal products.
Average unit price is expected to grow at a similar rate to the previous years of the review
period, when producers only leveraged the inflation rate to increase prices. Keeping low
prices is expected to be still the preferred strategy amongst manufacturers, which are well
aware of the importance that this low-price strategy represents to consumers.
Recently introduced brands like Strongbow are expected to keep on gaining consumers for
the cider/perry category. However, due to the difference of taste between Strongbow and
usual Mexican apple cider, it is expected that the change will be rather slow. At the same time
competitors are expected to enter the categorys new format of personal presentations and
therefore pick up interest in the category amongst consumers again, especially young ones.
Furthermore, companies are expected to invest efforts to position the cider/perry category as
an all-year-round one and not just for the winter season.
Off-trade is expected to still be the leading channel for cider/perry. However, it is important to
mention that if the personal formats of cider gain popularity, this situation will bring more ontrade consumption to the category, but still not as much as the off-trade channel brings
already.
CATEGORY DATA
Table 46
Euromonitor International
Passport
51
Passport
'000 litres
Cider/Perry
Source:
2008
2009
2010
2011
2012
2013
12,941.0
12,129.4
12,286.6
12,374.2
12,480.9
12,736.4
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 47
MXN million
Cider/Perry
Source:
2008
2009
2010
2011
2012
2013
605.9
599.0
634.8
660.4
691.7
736.9
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 48
Cider/Perry
Source:
2012/13
2008-13 CAGR
2008/13 Total
2.0
-0.3
-1.6
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 49
Cider/Perry
Source:
2012/13
2008-13 CAGR
2008/13 Total
6.5
4.0
21.6
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 50
'000 litres
Off-trade
On-trade
Total
Source:
2008
2009
2010
2011
2012
2013
11,803.3
1,137.6
12,941.0
11,080.4
1,049.0
12,129.4
11,242.2
1,044.4
12,286.6
11,335.5
1,038.8
12,374.2
11,453.4
1,027.6
12,480.9
11,698.5
1,038.0
12,736.4
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 51
MXN million
2008
Euromonitor International
2009
2010
2011
2012
2013
52
Off-trade
On-trade
Total
Source:
Passport
422.8
183.1
605.9
429.6
169.4
599.0
459.5
175.3
634.8
480.3
180.0
660.4
506.1
185.6
691.7
542.0
194.9
736.9
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 52
% volume growth
Off-trade
On-trade
Total
Source:
2012/13
2008-13 CAGR
2008/13 TOTAL
2.1
1.0
2.0
-0.2
-1.8
-0.3
-0.9
-8.8
-1.6
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 53
Off-trade
On-trade
Total
Source:
2008-13 CAGR
2008/13 TOTAL
7.1
5.0
6.5
5.1
1.3
4.0
28.2
6.4
21.6
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 54
% total volume
Company
Valle Redondo SA de CV
Bodegas Copa de Oro SA
de CV
Deolarte SA de CV
Grusifas SA
Heineken NV
Others
Total
Source:
2012/13
2009
2010
2011
2012
2013
34.4
16.9
36.4
17.2
36.8
16.7
36.9
16.7
36.5
16.5
12.4
9.0
27.3
100.0
12.5
9.1
24.8
100.0
12.6
9.0
24.9
100.0
12.6
9.0
24.8
100.0
12.5
8.8
1.2
24.5
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 55
% total volume
Company
Valle Redondo SA de CV
Bodegas Copa de Oro SA
de CV
Euromonitor International
2009
2010
2011
2012
2013
34.4
16.9
36.4
17.2
36.8
16.7
36.9
16.7
36.5
16.5
53
Passport
12.5
12.6
12.6
12.5
9.0
-
9.1
-
9.0
-
9.0
-
8.8
1.2
27.3
100.0
24.8
100.0
24.9
100.0
24.8
100.0
24.5
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 56
% total volume
Brand (Global Brand
Owner)
Campanario
Gota Real (Deolarte
SA de CV)
Copa de Oro
Pomar (Grusifas SA)
Santa Claus
Valle Redondo
Palencia
Strongbow Cider
(Heineken NV)
25 Aniversario
Reneta
Others
Total
Source:
12.4
Company
2010
2011
2012
2013
Valle Redondo SA de CV
Fabrica de Sidra Gota
Real SA
Bodegas Copa de Oro SA
de CV
Casa Cuervo SA de CV
Valle Redondo SA de CV
Valle Redondo SA de CV
Bodegas Copa de Oro SA
de CV
Heineken Mxico S de RL
de CV
Bodegas Copa de Oro SA
de CV
Bodegas Copa de Oro SA
de CV
Others
Total
23.5
12.5
23.8
12.6
23.8
12.6
23.6
12.5
12.7
12.2
12.3
12.1
9.1
7.1
5.9
4.6
9.0
7.1
5.9
4.4
9.0
7.1
5.9
4.4
8.8
7.1
5.9
4.4
1.2
24.8
100.0
24.9
100.0
24.8
100.0
24.5
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 57
'000 litres
Cider/Perry
Source:
2013
2014
2015
2016
2017
2018
12,736.4
12,990.9
13,225.9
13,438.1
13,639.6
13,816.1
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 58
MXN million
Cider/Perry
Source:
2013
2014
2015
2016
2017
2018
736.9
756.6
775.0
793.1
810.7
827.2
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Euromonitor International
54
Table 59
Passport
Cider/Perry
Source:
2017/18
2013-18 CAGR
2013/18 Total
1.3
1.6
8.5
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 60
Cider/Perry
Source:
2013-18 CAGR
2013/18 TOTAL
2.3
12.3
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Euromonitor International
55
RTDS/HIGH-STRENGTH PREMIXES IN
MEXICO - CATEGORY ANALYSIS
HEADLINES
RTDs in Mexico grows 2% in volume terms and 7% in value terms to reach 158.2 million litres
and Mx$7.8 billion
Major media advertising campaigns drive competition in RTDs/high-strength premixes
Spirit-based RTDs is the most dynamic category during 2013, with 3% growth in volume
terms and 8% in current value terms
Average unit price increases 4% in 2012 to reach Mx$49 per litre
Competitive environment is led by Casa Herradura SA de CV, owning 32% total value share
during 2013
RTDs/high-strength premixes shows a CAGRs of 3% in volume and value at constant 2013
prices over the forecast period
TRENDS
RTDs/high-strength premixes brands are still competing by price or price promotions, and
despite having many years without major media advertising campaigns, during 2013 players
in RTDs performed ad campaigns. A good example of these campaigns, which target
especially young consumers, is the Cero Complicado campaign for Caribe Cooler. One of
the most notable commercials includes a girl who is sad because she cannot go on vacations
due to lack of money. Then she realises she can bathe dogs and in a kind of sexy scene, she
starts bathing dogs at a park. That way she ends up enjoying her vacations with her friend
whilst drinking a Caribe Cooler.
2013s growth was slower than in the previous year, mainly driven by the better security
environment across the country and especially in northern states. RTDs/high-strength
premixes received a boost in popularity earlier in the review period when many Mexican
consumers were uncomfortable going out to bars at night and chose to gather with friends in
someones home instead. Also, it is important to note that 2013s economic performance was
slower than expected with an economic growth of only 1.3%, negatively impacting the growth
of RTDs/high-strength premixes.
Spirit-based premixes was the highest-growing category with 3% growth in volume and 8%
growth in value terms. This situation is highly driven by the presence of bigger presentations
along with higher-priced products like whiskey RTDs. Casa Herradura SA de CV, which owns
almost a third of volume share, offers the biggest presentations with its leading brand New
Mix, a tequila-based RTD which is very popular amongst young adults. Another driver of the
categorys growth is the whisky-based RTDs like Jack Daniels, which is the brand of spirits
most popular now amongst young and not-so-young adults in Mexico.
Average unit price increased 4% in 2013, slightly above inflation in Mexico. This category is
not one where manufacturers can raise prices much, since it is a category targeted to middleincome consumers, and a strong increase in prices would surely affect the sales, despite the
products convenience.
Euromonitor International
Passport
56
RTD/high-strength premixes are mainly drunk off-trade. This category is very much targeted
to middle-income consumers and a great part of the attractiveness of this category is the
convenience that these drinks represent. On- trade channels are more focused on beverages
made in the establishments other than RTDs.
At-home entertaining in Mexico has been less relevant as the perception of security problems
has been decreasing. RTDs are most commonly consumed during vacations or at home
parties, particularly over summer, since they are an easy and relatively inexpensive way of
having a greater variety of alcoholic beverages.
There were no RTD cocktails being launched during the review period and people are going
out more than in previous years since the security issues that Mexico faced during exPresident Felipe Calderons term are now improved.
RTDs/high-strength premixes in Mexico are targeted to middle-income consumers and many
of these consumers are young adults. Even in media advertisements one can see that this
category is targeted to young adults as one of the trendiest subcultures, the hipsters, are
featured in one of the media ads of one of the leading brands in wine-based RTDs, Caribe
Cooler. Another reflection of this target is that RTD producers are also very concerned with
advertising to consumers, especially young adults, the importance of drinking responsibly.
COMPETITIVE LANDSCAPE
The leading company in RTDs high-strength premixes is undoubtedly Casa Herradura SA de
CV, which still owned 32% total volume share in 2013. This strong position is driven by the
leading brand of the company, New Mix, a very popular RTD made with the most popular
Mexican spirit, tequila, containing the companys strong brand of tequila, El Jimador. New Mix
was the first spirit-based RTD in Mexico and still owns the benefit of being the first. This brand
is an inexpensive way to have a tequila beverage and very convenient for young adults in
terms of practicality and price.
During the review period the behaviour between the companies in RTDs/high-strength
premixes was very stable, resulting in no big increases or decreases in sales and shares.
Jack Daniels RTDs now have only two versions, with mineral water and cola; therefore a
slight decrease in brand share was visible during 2013.
International manufacturers lead the RTDs/high-strength premixes category with Casa
Herradura SA de CV accounting for 32% volume share in 2013 and Pernod Ricard Mxico SA
de CV accounting for 26% volume share. These two companies, thus, together owned nearly
60% volume share on the market, whilst domestic companies are mainly represented by
Productos de Uva SA de CV with its well-recognised brand within wine-based RTDs, Via
Real, accounting for 17% volume share.
Key new launches in the RTDs/high-strength premixes are mainly bigger presentations, which
represents the categorys good performance and at the same time, the need of higher volume
sales. New Mix is the product that leads the category with 57% value share of the spirit-based
RTDs and during 2013 it was presenting a bigger can for consumers who seek greater
product volume in this already well-known tequila-based RTD.
No packaging innovations were detected during the review period in RTDs/high-strength
premixes.
The great majority of RTDs/high-strength premixes products are aimed to middle-income
consumers. In fact, one of the categorys attractions is the price band that the products are in,
meaning that consumers can have a good mixed alcoholic beverage without having to pay
much more for it. The exception to this is brands like Jack Daniels and Finlandia Frost, which
Euromonitor International
Passport
57
are priced higher than the other competitors like New Mix, Via Real or Caribe Cooler. This
differentiation is helped by the fact that tequila is an already well-known and demanded spirit
in Mexico, whilst the trend to consume other spirits, like vodka and much more whisky, helps
these types of spirit-based RTDs become more premiumised by companies and consumers.
RTDs/high-strength premixes does not have private label players.
No relevant mergers or acquisitions were detected in RTDs/high-strength premixes during the
review period.
PROSPECTS
RTDs/high-strength premixes is expected to see more stable growth over the forecast period
than it did in the review period, at a 3% value CAGR at constant 2013 prices. Growth will be
driven mainly by bigger presentations and continued flavour innovation within brands already
well known by consumers. RTDs/high-strength premixes is a very popular category consumed
by young adults who benefit from the availability of various flavours and from having a mixed
alcoholic beverage at a very reasonable price, especially compared to other beverages that
they could make with the same ingredients (spirits or wine with soda). This trend amongst
middle-income young adults is expected to continue, especially with the hard economic
situation amongst them.
As mentioned, growth rates are expected to be more stable due to other trends that are
arising and continuing to grow amongst young adults in the middle-income segment, namely
increasing wine consumption and whisky consumption. But when convenience and price are
more concerned, RTDs are very strong amongst young adults for consumption, especially at
house parties and during the summer or spring vacations. This trend is not expected to
change over the forecast period, thus leading to RTDs/high-strength premixes having a stable
presence amongst Mexican consumers.
Potential threats to growth in this category are, contrary to other alcoholic drinks categories,
the possibility of increasing income amongst young adults, because this situation might help
them enter other categories that are also trendier than RTDs, such as wine or whiskies.
Another threat to the category is the increasing trend towards and availability of artisanal or
flavoured beer, but the higher price that these products represent compared to RTDs/highstrength premixes might be a dissuader of an easy change of habits.
Over the forecast period spirit-based RTDs is expected to continue leading RTDs/highstrength premixes since this category includes the tequila-based RTDs, made with tequila, the
most famous spirit amongst Mexican consumers. Also, the spirit-based RTD category
includes whisky-based RTDs and whisky is still a growing kind of spirit amongst Mexican
consumers, therefore giving another reason for this categorys good forecast performance.
The off-trade average unit price is expected to record a slight increase over the forecast
period. Mid-priced products are expected to continue competing on price in the off-trade
outlets whilst more premium RTD brands are expected to increase price slightly to keep their
premium status. RTDs in general is expected to remain a category with a good positioning in
terms of price-benefit relationship.
New Mixs larger presentation of 16 ounces (473ml) is expected to perform well as it is a
considerable increase of volume with, as usual in these cases, a lower unit price.
Companies are expected to continue with flavour innovations and keep on investing in getting
closer to young adults, especially for consumption in their home parties and during vacations.
Media ad campaigns are expected to be stronger and more widely present to persuade
consumers; this example has been seen in the final part of the year 2013 when Caribe Cooler
Euromonitor International
Passport
58
Passport
was very visible in ad campaigns with a hipster girl starting her own work of washing dogs in a
park, in order to get money for her vacations. Other companies are expected to invest in mass
media to be also present in consumers minds.
Over the forecast period, within RTDs/high-strength premixes the split between off-trade and
on-trade will not change significantly. The majority of sales will still be made in the off-trade
channel due to the convenience that it represents and the lower pricing in this channel.
RTDs/high-strength premixes are interesting to consumers due to the lower expense that they
represent vs. preparing mixed drinks at home and the convenience in consumption whilst
outdoors or at home parties. On-trade channels are more focused on preparing beverages
other than RTDs because of the higher margins, and on their part consumers in on-trade
channels prefer to have freshly made beverages other than those which they can have at
home. Off-trade volume is expected therefore to grow at 3% CAGR over the forecast period
whilst on-trade volume is expected to grow at slightly below 1% CAGR.
CATEGORY DA
Table 61
'000 litres
High-Strength Premixes
RTDs
- Malt-Based RTDs
- Spirit-Based RTDs
- Wine-Based RTDs
- Other RTDs
RTDs/High-Strength
Premixes
Source:
2008
2009
2010
2011
2012
2013
128,671.3
3,937.0
64,347.8
60,386.5
128,671.3
130,050.9
3,311.8
65,923.4
60,815.6
130,050.9
135,732.2
3,408.0
70,586.2
61,738.0
135,732.2
144,160.4
3,588.9
76,619.9
63,951.5
144,160.4
154,526.4
3,776.4
84,369.9
66,380.2
154,526.4
158,210.2
3,864.4
86,771.1
67,574.7
158,210.2
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 62
MXN million
High-Strength Premixes
RTDs
- Malt-Based RTDs
- Spirit-Based RTDs
- Wine-Based RTDs
- Other RTDs
RTDs/High-Strength
Premixes
Source:
Table 63
2008
2009
2010
2011
2012
2013
5,550.4
196.7
2,191.1
3,162.6
5,550.4
5,868.1
170.5
2,263.2
3,434.4
5,868.1
6,176.6
174.6
2,544.5
3,457.5
6,176.6
6,587.6
188.1
2,813.8
3,585.7
6,587.6
7,257.0
207.8
3,211.6
3,837.6
7,257.0
7,760.2
222.6
3,461.3
4,076.4
7,760.2
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
59
Passport
High-Strength Premixes
RTDs
- Malt-Based RTDs
- Spirit-Based RTDs
- Wine-Based RTDs
- Other RTDs
RTDs/High-Strength Premixes
Source:
2012/13
2008-13 CAGR
2008/13 Total
2.4
2.3
2.8
1.8
2.4
4.2
-0.4
6.2
2.3
4.2
23.0
-1.8
34.8
11.9
23.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 64
High-Strength Premixes
RTDs
- Malt-Based RTDs
- Spirit-Based RTDs
- Wine-Based RTDs
- Other RTDs
RTDs/High-Strength Premixes
Source:
2012/13
2008-13 CAGR
2008/13 Total
6.9
7.1
7.8
6.2
6.9
6.9
2.5
9.6
5.2
6.9
39.8
13.2
58.0
28.9
39.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 65
'000 litres
Off-trade
On-trade
Total
Source:
2008
2009
2010
2011
2012
2013
118,123.0
10,548.3
128,671.3
119,640.5
10,410.4
130,050.9
125,275.8
10,456.4
135,732.2
133,571.2
10,589.1
144,160.4
143,777.6
10,748.8
154,526.4
147,399.2
10,811.0
158,210.2
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 66
MXN million
Off-trade
On-trade
Total
Source:
2008
2009
2010
2011
2012
2013
3,894.3
1,656.0
5,550.4
4,083.9
1,784.2
5,868.1
4,315.0
1,861.6
6,176.6
4,655.0
1,932.6
6,587.6
5,221.9
2,035.2
7,257.0
5,617.9
2,142.4
7,760.2
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
60
Table 67
Passport
% volume growth
Off-trade
On-trade
Total
Source:
2012/13
2008-13 CAGR
2008/13 TOTAL
2.5
0.6
2.4
4.5
0.5
4.2
24.8
2.5
23.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 68
Off-trade
On-trade
Total
Source:
2008-13 CAGR
2008/13 TOTAL
7.6
5.3
6.9
7.6
5.3
6.9
44.3
29.4
39.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 69
% total volume
Company
Brown-Forman Corp
Pernod Ricard Groupe
Productos de Uva SA de CV
E&J Gallo Winery Inc
Vinicolas de Tecate D
de RL
Valle Redondo SA de CV
Campari Milano SpA,
Davide
Allied Domecq Plc
Casa Herradura SA de CV
Bacardi & Co Ltd
Others
Total
Source:
2012/13
2009
2010
2011
2012
2013
33.4
27.8
18.0
5.2
1.7
34.7
26.4
17.6
4.1
2.1
36.0
27.4
18.0
4.2
2.1
36.1
27.0
17.6
4.3
2.1
35.8
26.4
17.2
4.2
2.1
1.1
0.2
1.0
0.2
1.0
0.2
1.1
0.2
1.0
0.2
12.6
100.0
13.8
100.0
11.0
100.0
11.7
100.0
13.1
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 70
% total volume
Company
2009
2010
2011
2012
2013
Casa Herradura SA de CV
Pernod Ricard Mxico SA
31.2
-
32.1
-
32.1
-
31.8
27.0
31.5
26.4
Euromonitor International
61
Passport
de CV
Productos de Uva SA de CV
Brown-Forman Tequila
Mexico S de RL de CV
La Madrilea SA de CV
Vinicolas de Tecate D
de RL
Valle Redondo SA de CV
Casa Pedro Domecq
Mexico SA de CV
Bacardi y Cia SA de CV
Others
Total
Source:
Table 71
17.6
2.8
18.0
4.1
17.6
4.5
17.2
4.4
5.2
1.7
4.1
2.1
4.2
2.1
4.3
2.1
4.2
2.1
1.1
27.8
1.0
26.4
1.0
27.4
1.1
-
1.0
-
12.6
100.0
13.8
100.0
11.0
100.0
11.7
100.0
13.1
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
% total volume
Brand (Global Brand
Owner)
New Mix (BrownForman Corp)
Caribe Cooler
(Pernod Ricard
Groupe)
Via Real
Presidencola
(Pernod Ricard
Groupe)
Boone's Farm (E&J
Gallo Winery Inc)
Jack Daniel's &
Cola (Brown-Forman
Corp)
Cubaraima (Pernod
Ricard Groupe)
Paloma Real
Sunset
Finlandia Frost
(Brown-Forman Corp)
Caribe Cooler
(Pernod Ricard
Groupe)
Presidencola
(Pernod Ricard
Groupe)
Cubaraima (Pernod
Ricard Groupe)
Others
Total
Source:
18.0
2.4
Company
2010
2011
2012
2013
Casa Herradura SA de CV
31.9
31.9
31.6
31.3
18.9
18.5
17.6
-
18.0
-
17.6
4.6
17.2
4.5
La Madrilea SA de CV
4.1
4.2
4.3
4.2
Brown-Forman Tequila
Mexico S de RL de CV
2.8
3.4
3.5
3.4
3.4
3.4
2.1
2.1
2.1
2.1
1.0
-
1.0
0.7
1.1
1.0
1.0
1.0
18.3
19.4
4.5
4.6
3.6
3.4
14.0
100.0
11.2
100.0
11.9
100.0
13.3
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
62
Table 72
Passport
'000 litres
High-Strength Premixes
RTDs
- Malt-Based RTDs
- Spirit-Based RTDs
- Wine-Based RTDs
- Other RTDs
RTDs/High-Strength
Premixes
Source:
2013
2014
2015
2016
2017
2018
158,210.2
3,864.4
86,771.1
67,574.7
158,210.2
162,379.8
3,965.8
89,451.8
68,962.2
162,379.8
167,764.9
4,072.1
92,599.8
71,093.0
167,764.9
173,595.6
4,180.6
95,919.8
73,495.2
173,595.6
179,631.8
4,291.0
99,317.9
76,023.0
179,631.8
185,775.3
4,403.9
102,797.0
78,574.5
185,775.3
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 73
MXN million
High-Strength Premixes
RTDs
- Malt-Based RTDs
- Spirit-Based RTDs
- Wine-Based RTDs
- Other RTDs
RTDs/High-Strength
Premixes
Source:
Table 74
2013
2014
2015
2016
2017
2018
7,760.2
222.6
3,461.3
4,076.4
7,760.2
7,985.7
229.7
3,592.0
4,163.9
7,985.7
8,259.7
237.1
3,741.5
4,281.1
8,259.7
8,543.9
244.1
3,893.7
4,406.1
8,543.9
8,834.6
250.7
4,048.2
4,535.7
8,834.6
9,121.8
257.0
4,199.6
4,665.2
9,121.8
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
High-Strength Premixes
RTDs
- Malt-Based RTDs
- Spirit-Based RTDs
- Wine-Based RTDs
- Other RTDs
RTDs/High-Strength Premixes
Source:
Table 75
2017/18
2013-18 CAGR
2013/18 Total
3.4
2.6
3.5
3.4
3.4
3.3
2.6
3.4
3.1
3.3
17.4
14.0
18.5
16.3
17.4
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Euromonitor International
63
High-Strength Premixes
RTDs
- Malt-Based RTDs
- Spirit-Based RTDs
- Wine-Based RTDs
- Other RTDs
RTDs/High-Strength Premixes
Source:
Passport
2013-18 CAGR
2013/18 TOTAL
3.3
2.9
3.9
2.7
3.3
17.5
15.5
21.3
14.4
17.5
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Euromonitor International
64
TRENDS
Over the last few years of the review period, drinking whisky has become an important trend
amongst consumers, especially young adults, who are entering the category either because
they perceive whiskies as an aspirational category with more social status, or due to health
and wellness trends which support the drinking of whisky as a lower-calorie alcoholic drink.
This trend has become so popular that it is common to hear that in many diets whisky and
tequila are allowed. These trends have continued in 2013, encouraging double-digit growth in
the category.
The 2% volume growth for 2013 is similar to but slightly lower than growth in the previous
years (3% for 2012). This slight deceleration can be attributed to the weaker economic
performance of 2013 that caused many Mexican consumers to reduce consumption of many
nonessential products.
Bourbon/other US whiskey was the fastest-growing category during 2013 with 34% volume
growth. This category has benefitted from the still increasing trend amongst consumers,
especially young adults, of drinking whisky and the strong distribution and influence of US
whiskey due to the proximity of the US.
Average unit price increased 6% in 2013, twice the rate of inflation, to reach Mx$411 per litre.
This can be attributed to the premiumisation of the category and the importance of imported
products that are influenced by exchange rate fluctuations.
Brandy is the category which showed the slowest growth during 2013 with 5% volume
decrease. This category is strongly perceived as a category for older adults and this
positioning limits its consumption amongst young adults, who are driving spirits categories
growth.
Whisky has become very popular in recent years, particularly amongst the young urban crowd
who see the drink as a status symbol or proof of their sophistication. Whiskys image change
was driven by heavy investment from whisky producers and distributors, mainly Diageo, which
Euromonitor International
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65
sponsors private parties at the most distinguished universities to give it a younger image to
help associate the drink with partying and an urban lifestyle. Whisky is an aspirational drink
and despite it being expensive, consumers want to be seen drinking whisky. This has helped
the category to offer more varieties; whereas in previous years whisky was focused mainly on
Scotch and bourbon, it has seen an increased presence of other types of whiskies, such as
single malts. Once consumers have been introduced to whisky by trying other blended scotch
or bourbon, companies encourage them to upgrade to single malts or other more expensive
variants. Bourbon/other US whiskey is seeing the strongest growth of all with 34% volume
growth during 2013 and blended Scotch whisky was the most popular whisky sold in 2013,
accounting for 93% of the categorys total volume sales. This is led by the popularity of
Johnnie Walker Red Label (Diageo), which led blended Scotch whisky with a 24% share of
volume sales.
Off-trade and on-trade sales grew at similar rates during 2013. However, the largest volume is
seen in the off-trade channel which accounted for 74% of the overall spirits sales, though this
split varies significantly between categories. A deeper look shows that liqueurs for example is
growing faster in the off-trade channels since these drinks are more consumed at home, and
even media advertisements show this trend of having liqueurs at friends parties.
Microdistillers are beginning to play a more important role in spirits in Mexico due to the
increasing popularity of mezcal, the production of which has become a source of
entrepreneurship for many Mexicans, especially in the states of Oaxaca, Michoacn and
Guerrero. There are over 500 small producers of mezcal in Oaxaca alone, and only one
industrialised brand of mezcal on the market, called Zignum (made by Casa Armando
Guillermo Prieto SA de CV).
The strength of different price platforms of vodka has remained largely stable in recent years,
with a slight increase in the importance of premium vodka at the expense of economy
varieties between 2011 and 2013.
Gin is led by the economy brand Oso Negro, accounting for 55% share of volume sales
during 2013. Gin is generally used with mixers to prepare cocktails; therefore the quality of gin
is less important to many consumers than in other spirits that are consumed neat. Economy
gin gained 1% in volume during 2013 with no significant effect on the main leading super
premium brands.
Other blended Scotch is the leading category amongst whiskies and tends to be the entrance
door to the category. However, once people become loyal consumers of other blended Scotch
whisky, they begin to try other types of whisky such as single malt. In the case of an economic
downturn, however, the single malt users are expected to switch back to other blended
Scotch where recognised brands offer different types of quality levels and prices for
consumers to select their best options depending on the occasion and the availability of
money at the moment of purchase.
During 2013 the split of tequila and mezcal sales was 95% tequila and 5% mezcal, despite
the increasing trend of consuming mezcal. Mezcal is still benefitting from the efforts of the
Consejo Regulador del Tequila and Consejo Mexicano Regulador de la Calidad del Mezcal
which have encouraged the mezcal production and consumption across the nation and for
exports also, but it is still is a niche product.
The most important local spirits in Mexico are tequila and mezcal, accounting for almost
Mx$45 billion in 2013. One of the most iconic products made in Mexico is tequila, which is
famous across the world and is part of the Mexican identity. However, tequilas performance
has slowed in recent years, due not only to competition from imitation tequila made from cane
alcohol rather than agave, but also to the increased competition from other spirits which are
becoming popular amongst Mexican drinkers, most notably whisky. Mezcal has been
Euromonitor International
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66
struggling for years to get rid of the burden that links it with the low economic situation of
those who have been used to drinking it for decades. Despite this fact, mezcal is gaining
popularity with Mexican consumers following the increasing trend of favouring Mexican-made
products, especially as quality has improved and a greater number of mezcal producers are
being certified by COMERCAM. (Consejo Mexicano Regulador de la Calidad del Mezcal
Mexican Regulatory Council of the Quality of Mezcal)
As mentioned earlier, tequila has lost share to different types of whiskies, especially bourbon
and Scotch, which are currently trendy amongst young adults. Brandy has also suffered as a
direct consequence of the rising popularity of mezcal, although older brandy drinkers have
also moved away from brandy towards gin. White rum has also lost share in recent years
towards other trendier spirits like whisky and vodka, but the launch of spiced rum has made
the category of rum revive in interest amongst young consumers who are switching from
brandy to spiced rum.
Vodka sales have been declining over the past few years due to the increasing trend of
whisky for example. During 2013 vodka saw a decrease in volume sales of 2% and the
flavoured vodkas seem to be the products that are making the category stronger in growth
terms despite the small amount of sales that they represent to the category. Flavoured vodkas
grew to 11% volume share during 2013, which is a growth of two percentage points since
2008. Many of the leading vodka brands, including Absolut and Stolichnaya from Pernod
Ricard Mxico SA de CV and Smirnoff from Casa Cuervo SA de CV, offer a wide variety of
flavours, although there were no significant new flavoured vodka launches in 2013.
The only flavour movement amongst spirits detected during 2013 was the launch of Jack
Daniels Tennessee Honey Bourbon, which added a honey flavour to the already wellrecognised brand.
Spirits are popular amongst all genders, ages and income groups. The most consumed spirit
in Mexico is tequila and it can be widely consumed either by men or by women and by the
lower, middle and upper classes equally. What differentiates them are the quality of the
product and the times of consumption. Vodka is consumed both by young and older adults
and whisky, despite being traditionally enjoyed by older Mexicans with higher incomes, is now
a trend amongst young adults of the middle and upper classes. Brandy and Cognac remain
popular amongst older consumers.
Euromonitor International
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67
COMPETITIVE LANDSCAPE
Pernod Ricard Mxico SA de CV was the leading company during 2013 with 15% share of
total volume sales, followed by Casa Cuervo SA de CV with 14% share of volume sales.
Pernod Ricard Mexico combined in mid-2012 with Casa Pedro Domecq to reposition itself
more strongly and more evidently as part of the leading group Pernod Ricard and to try to
boost sales that had been declining in some categories recently. Both companies benefit from
strong and large portfolios with both domestic and imported brands in wine, vodka, whiskies
and tequila and also benefit from the name recognition that comes from decades of
establishment in Mexico.
Despite 2013 being a year with low economic growth which affected the spirits category, the
industry remained pretty stable. Diageo Mxico showed particularly strong growth, growing
7% to 8% volume share during 2013. Diageo is benefitting from the trend of increasing whisky
consumption, which is strongly driven by its leading brand Johnnie Walker.
Despite the fact that the leading spirits in Mexico, which are tequila and mezcal, are
domestically produced, the leading companies in tequila are owned by international
companies, causing the sales performance to be led by international manufacturers. Such is
the case of Casa Herradura, which owned 10% of total volume sales and stood in the third
position of share ranking. Casa Cuervo SA de CV owned 21% volume share during 2013 and
led the share ranking; however, the second place with 14% volume share was taken by
Tequila Sauza SA de CV, which has been owned by Beam Inc since 2011, therefore placing
two of the three top companies in the hands of international manufacturers.
A key new launch in spirits was Jack Daniels Tennessee Bourbon brand extension Honey.
Honey is a much sweeter variant that is designed to entice people who are not yet whisky
drinkers to try the product. The campaign was strongly supported by trials and events in the
on-trade channel.
No packaging innovation was detected during 2013 with the vast majority of spirits being sold
in glass bottles in many different shapes according to the price, quality and target of the
product.
Premium spirits brands compete mainly on quality perception, helped by the packaging
design and image, along with the higher price band that enforces the quality perception of the
product. Mid-priced brands compete with price promotions and sometimes they also compete
with giveaways in both the off-trade and on-trade channels, whilst in the on-trade channel
they also compete by giving experiences to consumers like free courses to help them learn
more about some types of spirits. Economy brands mainly compete on price.
No private label products were detected in spirits during 2013.
No new merger and acquisition activity in spirits was detected during 2013, the last
recognised activity having been the acquisition in 2012 by Gruppo Campari of Lascelles de
Mercado & Co, which produces amongst other brands Appleton and Appleton Special rum.
PROSPECTS
Over the forecast period the whiskies category is expected to see double-digit growth with the
probability of new launches and if the launch of Jack Daniels Tennessee Honey Bourbon
performs as well as expected, there might even be other flavour innovations seen in the
category.
Euromonitor International
Passport
68
Volume growth is expected to be somewhat faster during the forecast period than during the
review period with a forecast CAGR of 3%. Review period growth was negatively impacted by
the economic recession and the security problems facing the country especially in 2008 and
2009 as perceptions of security have improved and no further severe recessions are
predicted during the forecast period, growth prospects are more optimistic.
Potential threats to growth are mainly linked to economic downturns causing consumers to
trade off quality vs price promotions or causing them to switch trends or preferences because
of the effects on disposable income.
Bourbon/other US whiskey is expected to continue leading the growth in spirits over the
forecast period with a 28% volume CAGR. This situation is expected due to the trend of
whisky drinking amongst consumers which is expected to continue through the forecast
period.
Average unit price in spirits is expected to rise by 7% over the forecast period. This will be
driven by increased commodity costs, which will affect imported spirits in particular.
Jack Daniels Tennessee Honey is expected to perform well amongst non-habitual whiskey
drinkers as whisky is viewed as a trendy and sophisticated drink, but its strong taste is not
very popular amongst many. Other manufacturers are expected to be very aware of
Tennessee Honeys performance to see if Mexicans are now prepared to try new flavours or
new ways of drinking whisky.
Leading companies are expected to keep on innovating either in flavour or in new product
launches whilst at the same time, companies are expected to keep investing in promoting
brands around young adults trends, namely spiced rum, whisky and tequila. Mezcal is
expected to keep on growing but there is no foreseeable interest of the biggest companies in
this category in the near future.
On-trade volume sales are expected to perform very similarly to off-trade sales over the
review period with both having an expected 3% CAGR in volume terms until 2018, with ontrade growth slightly faster. Mexicos economic performance is expected to recover over the
forecast years after 2013s slow growth, and this situation might help give consumers more
out-of-pocket money to spend on alcoholic drinks, both in on-trade channels where they can
be seen by others and in off-trade channels for private parties, especially in northern areas
where for security reasons entertaining at home is more common.
Premium products are expected to lead growth over the forecast period, especially after
companies strategies succeed in taking consumers to a more premium segment, which is
happening in the tequila and whiskies categories. Mid-priced products are expected to keep
on competing through price promotions, giveaways or experiences for consumers in both offtrade and on-trade channels.
CATEGORY BACKGROUND
Classification for these spirits products is based on purely pricing, taking a typical brand,
usually the leading brand by volume, as the benchmark price which is indexed as 100%. The
benchmark brand will usually be a mid-priced brand. There will be exceptions, however,
whereby an economy brand (likely for vodka in some countries in Eastern Europe) or a
premium brand (typically the case for Scotch whisky in the US) is used as the benchmark
brand. Refer to the guidelines below for further detail.
Based on benchmark brand being mid-priced:
Super-premium: 30% or higher than the price of the benchmark brand
Euromonitor International
Passport
69
Passport
Positioning
Premium
Vodka
Absolut
Premium
Gin
Oso Negro
Economy
Dark rum
Appleton
Mid-priced
White rum
Mid-priced
Source:
CATEGORY DATA
Table 76
'000 litres
Euromonitor International
2008
2009
2010
2011
2012
2013
28,854.6
28,012.6
842.1
7,517.6
571.7
3,588.7
3,357.2
35,627.8
10,776.9
24,850.9
29,846.6
29,092.9
753.7
7,632.3
787.3
3,621.1
3,224.0
33,693.5
10,308.6
23,385.0
30,044.5
29,307.6
736.9
7,581.6
865.8
3,598.5
3,117.3
32,993.0
10,129.5
22,863.5
30,234.9
29,503.9
730.9
7,536.7
916.9
3,589.9
3,030.0
33,430.1
10,264.0
23,166.1
28,528.1
27,803.7
724.4
7,584.2
984.4
3,625.0
2,974.8
33,491.7
10,460.5
23,031.2
27,148.1
26,417.5
730.6
7,662.7
1,037.7
3,657.1
2,967.9
33,486.8
10,611.7
22,875.1
70
Passport
92,363.9
12,453.9
534.4
88,463.6
15,559.0
616.2
88,931.3
22,557.6
748.9
90,338.6
25,838.5
881.4
93,077.3
29,829.8
1,201.7
94,444.0
33,894.9
1,613.6
209.5
39.8
11,568.3
102.0
239.5
41.0
14,522.7
139.6
333.1
43.9
21,256.1
175.6
383.3
49.8
24,302.3
221.8
430.5
59.7
27,864.3
273.7
474.4
64.2
31,413.7
329.0
13,648.2
522.5
13,125.7
24,141.9
2,264.3
559.2
14,174.6
506.8
13,667.8
25,782.2
2,503.0
552.8
14,591.7
505.3
14,086.4
27,040.8
2,593.5
559.5
15,022.8
515.6
14,507.2
28,636.4
2,668.7
505.4
15,333.5
522.9
14,810.5
29,892.0
2,781.5
470.6
15,109.6
529.7
14,579.8
31,065.8
2,871.7
441.8
207.1
21,111.3
177.4
22,549.0
166.0
23,721.9
154.2
25,308.1
144.8
26,495.1
136.5
27,615.8
214,608.0
215,151.8
223,740.5
231,038.0
237,736.6
242,811.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 77
MXN million
Euromonitor International
2008
2009
2010
2011
2012
2013
7,574.2
6,808.6
765.6
2,975.5
350.3
1,451.2
1,174.0
8,266.1
2,915.6
5,350.5
36,031.0
7,987.7
326.7
7,219.0
6,473.9
745.0
3,015.8
480.9
1,363.2
1,171.8
8,177.2
2,900.6
5,276.6
35,013.0
9,546.5
392.6
7,171.3
6,426.0
745.2
2,882.9
542.7
1,350.8
989.4
8,321.6
2,971.9
5,349.7
36,723.6
14,367.6
480.4
7,549.9
6,781.9
768.0
3,007.3
583.2
1,407.8
1,016.2
8,869.8
3,170.2
5,699.6
39,289.0
17,076.7
590.5
7,486.3
6,675.6
810.7
3,196.1
650.9
1,497.3
1,047.9
9,306.8
3,385.1
5,921.6
42,180.5
20,670.2
838.0
7,725.7
6,868.3
857.4
3,392.9
710.4
1,584.1
1,098.4
9,727.6
3,587.6
6,140.1
44,530.1
24,656.2
1,173.7
91.3
41.2
7,422.8
105.8
103.3
41.9
8,860.8
147.9
143.5
43.9
13,512.9
187.0
170.7
50.9
16,020.7
244.0
198.2
64.8
19,251.5
317.8
227.3
73.4
22,771.5
410.3
5,629.1
271.7
5,357.4
1,720.8
294.8
120.4
5,667.5
253.9
5,413.5
1,862.2
285.9
108.1
5,881.0
248.9
5,632.1
2,008.8
296.3
109.0
6,337.1
256.8
6,080.3
2,195.1
314.6
104.7
6,791.8
270.7
6,521.1
2,378.7
338.2
103.0
7,105.3
285.0
6,820.3
2,562.2
359.6
101.1
9.4
8.6
8.0
7.7
7.4
7.2
71
- Other Distilled
Beverages
Spirits
Source:
Table 78
Passport
1,296.2
1,459.7
1,595.4
1,768.1
1,930.1
2,094.3
70,184.4
70,501.3
77,356.8
84,324.8
92,010.3
99,700.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 79
2012/13
2008-13 CAGR
2008/13 Total
-4.8
-5.0
0.9
1.0
5.4
0.9
-0.2
0.0
1.4
-0.7
1.5
13.6
34.3
10.2
7.5
12.7
20.2
-1.5
1.3
-1.6
3.9
3.2
-6.1
-5.7
4.2
2.1
-1.2
-1.2
-2.8
0.4
12.7
0.4
-2.4
-1.2
-0.3
-1.6
0.4
22.2
24.7
17.8
10.0
22.1
26.4
2.1
0.3
2.1
5.2
4.9
-4.6
-8.0
5.5
2.5
-5.9
-5.7
-13.2
1.9
81.5
1.9
-11.6
-6.0
-1.5
-8.0
2.3
172.2
202.0
126.5
61.1
171.6
222.5
10.7
1.4
11.1
28.7
26.8
-21.0
-34.1
30.8
13.1
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
2012/13
2008-13 CAGR
2008/13 Total
3.2
2.9
5.8
6.2
9.1
5.8
4.8
4.5
6.0
0.4
0.2
2.3
2.7
15.2
1.8
-1.3
3.3
4.2
2.0
0.9
12.0
14.0
102.8
9.2
-6.4
17.7
23.0
72
Passport
- White Rum
Tequila (and Mezcal)
Whiskies
- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
- Blended Scotch Whisky
- Single Malt Scotch Whisky
- Other Whiskies
White Spirits
- Gin
- Vodka
Other Spirits
- Aguardente/Aguardiente
- Aniseed-Flavoured Spirits
- Charanda
- Other Distilled Beverages
Spirits
Source:
3.7
5.6
19.3
40.1
14.7
13.3
18.3
29.1
4.6
5.3
4.6
7.7
6.3
-1.8
-2.8
8.5
8.4
2.8
4.3
25.3
29.1
20.0
12.2
25.1
31.1
4.8
1.0
4.9
8.3
4.1
-3.4
-5.2
10.1
7.3
14.8
23.6
208.7
259.2
149.1
78.2
206.8
287.9
26.2
4.9
27.3
48.9
22.0
-16.0
-23.3
61.6
42.1
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 80
'000 litres
Off-trade
On-trade
Total
Source:
2008
2009
2010
2011
2012
2013
155,693.8
58,914.3
214,608.0
159,902.6
55,249.2
215,151.8
165,999.8
57,740.7
223,740.5
171,467.7
59,570.3
231,038.0
176,130.6
61,606.0
237,736.6
179,577.8
63,234.0
242,811.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 81
MXN million
Off-trade
On-trade
Total
Source:
2008
2009
2010
2011
2012
2013
28,491.7
41,692.7
70,184.4
28,880.9
41,620.4
70,501.3
31,445.2
45,911.6
77,356.8
34,197.4
50,127.4
84,324.8
37,129.3
54,881.0
92,010.3
40,117.4
59,582.6
99,700.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 82
% volume growth
Off-trade
On-trade
Total
Source:
2012/13
2008-13 CAGR
2008/13 TOTAL
2.0
2.6
2.1
2.9
1.4
2.5
15.3
7.3
13.1
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
73
Table 83
Passport
Off-trade
On-trade
Total
Source:
2012/13
2008-13 CAGR
2008/13 TOTAL
8.0
8.6
8.4
7.1
7.4
7.3
40.8
42.9
42.1
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 84
% total volume
Super Premium
Premium
Mid-Priced
Economy
Total
Source:
Note:
2008
2009
2010
2011
2012
2013
3.7
6.2
67.8
22.3
100.0
3.4
6.2
69.2
21.2
100.0
3.3
6.1
62.9
27.7
100.0
3.4
6.3
69.1
21.2
100.0
3.0
6.6
71.8
18.6
100.0
2.9
9.8
68.2
19.2
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
- indicates data not available
Table 85
% total volume
Super Premium
Premium
Mid-Priced
Economy
Total
Source:
Note:
2008
2009
2010
2011
2012
2013
1.7
7.6
60.3
30.4
100.0
1.7
7.6
60.5
30.2
100.0
1.8
7.7
60.9
29.6
100.0
1.8
7.9
63.8
26.4
100.0
1.8
7.8
64.4
26.1
100.0
1.8
7.9
63.4
26.9
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
- indicates data not available
Table 86
% total volume
Super Premium
Premium
Mid-Priced
Economy
Total
Source:
Note:
2008
2009
2010
2011
2012
2013
1.6
36.4
42.5
19.5
100.0
1.7
35.5
42.4
20.3
100.0
1.5
34.0
38.5
26.1
100.0
1.6
33.6
36.2
28.5
100.0
1.8
31.6
37.1
29.5
100.0
1.8
30.2
33.8
34.3
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
- indicates data not available
Euromonitor International
74
Table 87
Passport
% total volume
Super Premium
Premium
Mid-Priced
Economy
Total
Source:
Note:
2008
2009
2010
2011
2012
2013
36.4
1.5
1.5
60.6
100.0
36.2
1.5
1.5
60.8
100.0
38.7
1.6
1.6
58.2
100.0
39.2
1.8
1.8
57.3
100.0
39.9
1.8
1.8
56.6
100.0
39.9
1.9
1.9
56.4
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
- indicates data not available
Table 88
% total volume
Super Premium
Premium
Mid-Priced
Economy
Total
Source:
Note:
2008
2009
2010
2011
2012
2013
3.3
31.4
33.9
31.4
100.0
3.3
33.1
33.1
30.6
100.0
3.3
32.5
30.1
34.2
100.0
3.3
33.4
29.6
33.7
100.0
3.3
33.9
29.4
33.4
100.0
3.4
34.5
29.6
32.4
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
- indicates data not available
Table 89
% total volume
Flavoured Vodka
Non-Flavoured Vodka
Total
Source:
2008
2009
2010
2011
2012
2013
9.4
90.6
100.0
9.6
90.4
100.0
10.2
89.8
100.0
10.6
89.4
100.0
10.7
89.3
100.0
11.1
88.9
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 90
% total volume
Company
Pernod Ricard Groupe
Grupo Cuervo SA de CV
Bacardi & Co Ltd
Diageo Plc
Grupo Corona Spirits SA
de CV
Beam Inc
Brown-Forman Corp
Tequila Centinela SA de
CV
Euromonitor International
2009
2010
2011
2012
2013
13.9
9.5
10.3
7.4
7.0
14.5
9.6
10.2
8.1
7.2
14.5
9.6
9.9
8.6
7.4
14.1
9.9
9.8
9.4
7.6
13.8
10.2
9.7
9.5
7.7
4.5
4.0
4.6
3.9
6.0
4.6
3.7
6.0
4.6
3.6
6.1
4.6
3.6
75
Tequila Supremo SA de CV
Miguel Torres SA
La Madrilea SA de CV
Licores El Compadre SA
de CV
Campari Milano SpA,
Davide
Tequilas del Seor SA
de CV
La Martiniquaise SVS
Tequila Orendain de
Jalisco SA de CV
Oro de Oaxaca SA de CV
Nacional Vincola SA de
CV
Proximo Spirits Inc
William Grant & Sons Ltd
Belvdre SA
Destiladora Ibarra
Mast-Jgermeister SE
Matusalem & Co
Soyuzplodimport ZAO
Grupo Osborne SA
Diego Zamora SA
Productora de Licores y
Jarabes de Yucatan SA
de CV
Destilera Serralls Inc
Rmy Cointreau Group
Others
Total
Source:
Passport
3.4
2.6
1.6
1.2
3.6
2.8
1.5
1.3
3.5
2.8
1.5
1.3
3.5
2.6
1.5
1.3
3.5
2.6
1.5
1.3
0.1
0.2
0.2
1.3
1.2
1.1
1.0
1.0
0.9
0.9
0.4
0.6
0.5
0.6
0.5
0.6
0.6
0.6
0.6
0.6
0.4
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.0
0.2
0.3
0.1
0.1
0.0
0.2
0.1
0.1
0.1
0.2
0.3
0.1
0.1
0.1
0.2
0.1
0.1
0.0
0.3
0.2
0.2
0.2
0.1
0.1
0.2
0.1
0.1
0.1
0.2
0.2
0.2
0.2
0.1
0.2
0.2
0.1
0.1
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.2
0.1
0.1
0.1
0.0
30.1
100.0
0.1
0.0
28.4
100.0
0.1
0.0
22.0
100.0
0.1
0.0
20.5
100.0
0.1
0.0
20.1
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 91
% total volume
Company
Pernod Ricard Mxico SA
de CV
Casa Cuervo SA de CV
Bacardi y Cia SA de CV
Diageo Mxico SA de CV
Grupo Corona Spirits SA
de CV
Tequila Sauza SA de CV
Casa Herradura SA de CV
Tequila Centinela SA de
CV
Tequila Supremo SA de CV
Bodegas La Negrita SA
de CV
Licores El Compadre SA
de CV
La Madrilea SA de CV
Tequilas del Seor SA
de CV
La Martiniquaise SVS
Euromonitor International
2009
2010
2011
2012
2013
3.0
3.7
3.9
15.0
14.7
13.7
10.2
5.4
7.0
13.3
10.1
6.2
7.2
12.6
9.8
6.6
7.4
13.0
9.7
7.4
7.6
13.5
9.6
7.8
7.7
6.2
4.6
4.0
5.8
4.7
3.9
5.3
5.7
3.7
5.4
5.5
3.6
5.5
5.4
3.6
3.4
2.6
3.6
2.8
3.5
2.8
3.5
2.6
3.5
2.6
1.2
1.3
1.3
1.3
1.3
1.3
1.1
1.2
1.0
1.3
1.0
1.3
0.9
1.3
0.9
0.4
0.5
0.5
0.6
0.6
76
Passport
Tequila Orendain de
Jalisco SA de CV
Oro de Oaxaca SA de CV
Nacional Vincola SA de
CV
William Grant & Sons
Mexico
Destiladora Ibarra SA
de CV
Mast-Jgermeister AG
Productora de Licores y
Jarabes de Yucatan SA
de CV
Maxxium de Mxico SA de
CV
Casa Pedro Domecq
Mexico SA de CV
Others
Total
Source:
Table 92
0.6
0.6
0.6
0.6
0.4
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.3
0.0
0.1
0.3
0.2
0.3
0.3
0.3
0.2
0.2
0.2
0.1
0.1
0.1
0.1
0.2
0.1
0.2
0.1
0.2
0.1
0.0
0.0
0.1
0.1
0.1
11.8
11.7
11.7
21.8
100.0
21.0
100.0
20.9
100.0
20.4
100.0
20.0
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
% total volume
Brand (Global Brand
Owner)
Rancho Escondido
Bacardi Carta
Blanca (Bacardi &
Co Ltd)
Cabrito
Presidente (Pernod
Ricard Groupe)
100 aos (Beam Inc)
Johnnie Walker Red
Label (Diageo Plc)
Tequila Cazadores
(Bacardi & Co Ltd)
El Jimador (BrownForman Corp)
Torres (Miguel
Torres SA)
Jos Cuervo
Tradicional (Grupo
Cuervo SA de CV)
Presidente (Pernod
Ricard Groupe)
Don Pedro (Pernod
Ricard Groupe)
100 aos (Fortune
Brands Inc)
Others
Total
Source:
0.6
Company
2010
2011
2012
2013
7.2
7.4
7.6
7.7
4.2
4.0
4.0
3.9
Tequila Centinela SA de CV
Pernod Ricard Mxico SA
de CV
Tequila Sauza SA de CV
Diageo Mxico SA de CV
3.9
-
3.7
-
3.6
3.5
3.6
3.2
2.6
3.0
2.7
3.1
3.1
3.1
3.0
Bacardi y Cia SA de CV
3.2
3.1
3.0
3.0
Casa Herradura SA de CV
3.3
3.3
3.1
3.0
Bodegas La Negrita SA
de CV
Casa Cuervo SA de CV
2.8
2.8
2.6
2.6
2.3
2.3
2.3
2.2
4.0
3.9
2.5
2.5
3.1
60.7
100.0
61.4
100.0
64.2
100.0
64.8
100.0
Others
Total
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
77
Table 93
Passport
'000 litres
Spirits Exports
Spirits Imports
Source:
Note:
2007
2008
2009
2010
2011
2012
141,913.0
38,017.8
185,405.2
46,817.9
141,935.7
45,913.8
171,535.8
51,610.4
182,105.2
53,365.5
200,174.0
67,510.7
Table 94
'000 litres
Spirits United Kingdom
Spirits US
Spirits Spain
Spirits Sweden
Spirits Guatemala
Spirits France
Spirits Ireland
Spirits Argentina
Spirits Poland
Spirits Puerto Rico
(U.S.)
Spirits Latvia
Spirits Germany
Spirits Nicaragua
Spirits Italy
Spirits Cuba
Spirits Canada
Spirits Guyana
Spirits Netherlands
Spirits Finland
Spirits Barbados
Spirits Bahamas
Spirits Korea, South
Spirits Russia
Spirits South Africa
Spirits Dominican
Republic
Spirits Others
Spirits Total
Source:
Note:
2007
2008
2009
2010
2011
2012
9,651.9
2,561.5
11,899.8
3,025.7
35.1
2,307.9
1,875.1
1,099.5
703.8
100.1
13,060.9
2,899.2
11,513.6
3,338.2
71.9
2,140.4
1,773.0
2,239.4
698.2
148.2
14,098.0
2,791.3
11,668.8
4,159.2
120.5
1,795.5
1,824.3
3,225.1
889.3
100.7
20,228.6
3,455.9
11,143.7
4,973.3
907.8
1,827.3
2,224.2
1,753.2
1,223.0
86.3
22,958.8
4,573.3
10,912.6
3,165.1
1,439.9
1,932.8
1,468.4
1,797.5
918.3
128.9
26,526.2
13,306.7
11,933.0
2,654.9
2,213.8
2,130.6
1,988.7
668.3
629.0
616.7
251.9
236.2
377.6
568.9
777.1
1.8
106.9
65.3
7.8
103.4
39.0
361.1
12.5
216.0
255.4
322.8
372.9
517.0
303.8
2.6
105.1
64.9
95.3
4,096.0
44.6
706.0
4.8
333.1
316.7
304.9
361.3
599.0
216.4
0.0
200.7
49.0
54.7
1,559.5
67.6
474.3
3.3
386.1
0.0
516.3
422.4
384.1
549.1
300.0
96.1
174.6
95.0
51.8
120.3
55.0
349.6
4.4
427.9
211.4
445.0
510.3
401.7
434.1
326.4
160.3
195.1
176.3
97.7
77.4
75.3
347.2
85.6
278.9
519.2
498.9
468.3
455.4
420.7
345.7
246.9
174.9
167.9
78.6
75.5
70.8
50.5
19.3
16.8
1,632.0
38,017.8
1,710.5
46,817.9
647.5
45,913.8
240.6
51,610.4
247.1
53,365.5
1,233.4
67,510.7
Table 95
MX$ million
Spirits United Kingdom
Spirits Spain
Euromonitor International
2007
2008
2009
2010
2011
2012
575.6
673.4
812.0
742.6
944.5
905.2
1,361.2
835.7
1,616.7
800.1
1,980.5
935.4
78
Spirits US
Spirits France
Spirits Sweden
Spirits Ireland
Spirits Guatemala
Spirits Guyana
Spirits Poland
Spirits Italy
Spirits Germany
Spirits Jamaica
Spirits Nicaragua
Spirits Latvia
Spirits Canada
Spirits Cuba
Spirits Puerto Rico
(U.S.)
Spirits Argentina
Spirits Netherlands
Spirits Finland
Spirits Bahamas
Spirits Russia
Spirits South Africa
Spirits Dominican
Republic
Spirits Panama
Spirits Others
Spirits Total
Source:
Note:
Passport
226.5
275.7
178.5
114.2
3.7
0.1
29.3
35.3
18.4
53.8
13.1
44.0
25.8
4.8
259.4
293.5
202.8
111.3
9.8
0.1
38.5
39.3
25.4
54.9
17.6
25.5
20.3
7.4
261.1
286.0
269.1
114.9
14.8
0.0
74.2
43.2
35.9
17.0
21.4
22.1
28.0
6.1
324.8
269.1
239.8
133.0
46.5
21.5
91.1
43.3
43.5
3.6
26.9
0.0
27.4
28.8
6.0
390.4
295.5
217.0
100.2
72.7
38.2
56.9
43.4
44.6
3.9
33.6
12.6
23.5
25.6
6.6
403.4
342.4
164.4
148.2
111.2
61.1
52.9
51.0
48.5
38.4
38.1
33.1
29.6
25.2
24.1
11.5
6.5
2.9
3.0
12.7
0.9
5.9
35.8
5.4
2.9
78.3
24.7
0.4
7.5
63.1
13.9
2.2
35.6
24.5
0.3
10.3
31.2
9.8
3.8
6.8
20.7
0.4
11.0
31.1
11.7
5.0
3.5
20.0
6.8
6.9
14.9
11.3
5.4
3.6
3.0
1.7
1.4
0.1
11.6
2,327.2
0.0
28.1
2,843.5
0.0
29.4
3,222.9
0.5
30.1
3,616.5
2.2
13.7
3,882.5
0.0
21.5
4,550.4
Table 96
'000 litres
Spirits US
Spirits Russia
Spirits Puerto Rico
(U.S.)
Spirits Germany
Spirits Spain
Spirits Panama
Spirits France
Spirits Unidentified
Country
Spirits United Kingdom
Spirits Chile
Spirits Japan
Spirits Brazil
Spirits Singapore
Spirits Honduras
Spirits Australia
Spirits Costa Rica
Spirits Latvia
Spirits South Africa
Spirits Canada
Spirits Colombia
Spirits Argentina
Spirits Guatemala
Euromonitor International
2007
2008
2009
2010
2011
2012
96,234.9
1,102.1
239.3
131,768.7
1,643.1
234.2
105,572.8
706.6
223.7
115,687.1
959.4
6,616.6
116,729.8
1,668.4
10,468.5
121,571.9
12,292.2
11,255.1
5,048.8
4,259.3
1,861.1
2,011.1
7,999.6
7,116.6
2,736.5
2,193.2
2,029.6
5,267.5
6,670.2
2,515.7
2,527.4
1,691.8
1,953.3
7,234.2
4,454.8
2,815.1
2,034.8
2,241.2
6,163.0
5,005.7
3,917.0
2,840.1
2,090.9
5,976.9
5,814.0
3,592.1
2,808.6
2,429.7
1,364.4
784.1
1,157.1
646.2
638.0
741.7
1,468.3
1,524.7
273.0
779.4
1,087.6
363.9
577.4
436.7
1,640.8
612.2
1,062.0
918.6
298.9
608.9
8,938.8
1,835.1
279.6
799.4
1,225.2
442.3
690.6
576.7
1,552.8
1,297.3
1,355.2
929.3
415.0
557.8
1,463.8
1,255.0
276.2
807.1
1,131.7
335.7
261.3
533.7
1,578.9
2,299.4
1,182.1
1,468.7
494.0
577.5
1,601.6
1,266.0
613.3
1,401.3
1,734.2
455.1
557.2
660.2
2,809.4
2,019.2
1,310.5
1,818.6
1,128.3
585.9
1,503.1
858.6
940.1
1,194.6
2,709.4
650.7
909.9
728.9
2,313.0
1,840.3
1,639.5
1,566.7
1,491.3
1,448.7
1,411.1
1,318.5
1,198.9
1,175.8
984.8
797.2
778.6
739.8
79
Spirits Turkey
Spirits Italy
Spirits New Zealand
Spirits Others
Spirits Total
Source:
Note:
Passport
243.3
985.3
259.2
9,826.5
141,913.0
205.5
408.0
356.8
11,516.7
185,405.2
218.5
319.3
291.4
7,072.9
141,935.7
358.0
450.9
5,069.3
7,724.7
171,535.8
607.5
536.3
5,637.0
7,273.8
182,105.2
561.2
530.6
240.6
14,397.1
200,174.0
Table 97
MX$ million
Spirits US
Spirits Unidentified
Country
Spirits Russia
Spirits Spain
Spirits Germany
Spirits Japan
Spirits United Kingdom
Spirits Panama
Spirits Puerto Rico
(U.S.)
Spirits Singapore
Spirits Australia
Spirits Brazil
Spirits France
Spirits South Africa
Spirits Chile
Spirits United Arab
Emirates
Spirits Latvia
Spirits Canada
Spirits Colombia
Spirits Greece
Spirits Turkey
Spirits Korea, South
Spirits Italy
Spirits Czech Republic
Spirits Paraguay
Spirits Others
Spirits Total
Source:
Note:
2007
2008
2009
2010
2011
2012
6,369.2
588.3
6,398.9
672.6
7,165.2
653.2
7,892.5
754.0
8,487.4
798.1
9,235.5
1,083.4
125.8
342.4
114.0
82.8
72.9
121.7
14.5
241.6
104.3
194.6
78.0
90.3
101.1
16.2
107.3
114.2
163.6
130.9
120.9
146.7
19.2
151.2
192.7
177.4
105.6
111.6
144.9
95.5
270.7
228.4
176.3
117.0
161.1
201.7
143.6
283.9
283.5
230.7
202.1
197.2
172.9
168.3
40.3
93.9
29.2
53.0
53.2
24.6
14.3
22.3
87.3
35.8
60.5
49.3
21.8
18.8
36.2
107.0
61.4
52.2
69.9
65.8
20.3
41.1
121.3
71.5
70.6
112.2
102.0
35.0
91.5
104.6
105.3
82.7
100.8
76.8
44.0
144.2
112.3
110.2
105.8
84.7
70.8
70.2
19.8
58.7
15.7
64.5
12.6
14.8
56.0
9.9
6.6
481.3
8,880.0
14.6
69.4
21.4
83.0
10.8
19.0
23.7
6.9
7.8
501.1
8,951.2
17.1
75.1
18.2
83.1
13.4
25.4
18.2
2.3
10.1
380.3
9,677.3
35.2
91.2
20.3
55.2
20.8
29.4
30.1
45.0
17.0
481.9
11,005.2
49.7
98.0
35.9
34.5
34.1
25.6
32.8
53.9
27.9
410.7
11,993.0
68.8
61.7
55.7
52.7
36.1
34.2
33.7
32.1
30.7
522.6
13,484.0
Table 98
Production, Imports and Exports of Brandy & Cognac: Total Volume 20072012
'000 litres
Brandy and Cognac
Imports
Brandy and Cognac
Exports
Source:
Euromonitor International
2007
2008
2009
2010
2011
2012
13,879.1
14,611.8
15,517.4
13,387.0
13,072.9
12,933.7
1,963.3
1,844.4
1,548.4
1,497.8
1,385.8
984.0
80
Note:
Passport
Table 99
'000 litres
Rum Production
Rum Exports
Rum Apparent
consumption
Rum Imports
Source:
Note:
2007
2008
2009
2010
2011
2012
18,924.0
8,550.8
13,349.4
19,511.0
11,172.4
15,541.8
28,195.0
12,223.0
19,716.0
29,033.0
17,586.0
14,411.8
30,781.0
19,262.1
15,113.1
30,177.0
24,571.0
10,958.3
2,976.3
7,203.2
3,744.0
2,964.8
3,594.2
5,352.3
Table 100
Production, Imports and Exports of Tequila (and Mezcal): Total Volume 20072012
'000 litres
Tequila (and Mezcal)
Production
Tequila (and Mezcal)
Exports
Tequila (and Mezcal)
Apparent consumption
Tequila (and Mezcal)
Imports
Source:
Note:
2007
2008
2009
2010
2011
2012
284,200.0
309,100.0
126,893.0
138,133.0
152,108.0
163,058.0
116,982.1
119,760.0
115,258.9
133,438.2
139,809.4
156,238.5
168,072.0
190,305.4
12,388.5
5,504.8
13,435.5
16,756.7
854.1
965.5
754.4
810.0
1,136.8
9,937.1
Table 101
'000 litres
Whiskies Imports
Whiskies Exports
Source:
Note:
2007
2008
2009
2010
2011
2012
9,690.3
1,235.1
13,736.4
823.1
15,251.6
310.6
22,016.5
425.9
24,788.9
496.8
29,129.7
526.8
Table 102
'000 litres
Gin Imports
Gin Exports
Source:
Note:
Euromonitor International
2007
2008
2009
2010
2011
2012
255.0
241.2
263.2
98.1
219.9
37.7
275.6
47.7
277.8
44.2
345.7
47.3
81
Table 103
Passport
'000 litres
Vodka Imports
Vodka Exports
Source:
Note:
2007
2008
2009
2010
2011
2012
5,308.7
1,272.3
6,015.7
630.4
6,800.2
271.0
7,841.6
337.9
6,047.5
423.1
5,230.5
510.8
Table 104
'000 litres
2013
2014
2015
2016
2017
2018
27,148.1
26,417.5
730.6
7,662.7
1,037.7
3,657.1
2,967.9
33,486.8
10,611.7
22,875.1
94,444.0
33,894.9
1,613.6
26,632.7
25,896.6
736.1
7,763.8
1,096.1
3,695.8
2,972.0
33,511.8
10,772.4
22,739.4
96,176.6
38,421.3
2,125.6
26,215.3
25,473.1
742.2
7,866.4
1,155.0
3,731.2
2,980.1
33,535.2
10,927.4
22,607.9
97,744.2
43,316.9
2,772.4
25,947.3
25,198.9
748.4
7,969.0
1,212.5
3,764.6
2,991.8
33,572.6
11,071.0
22,501.6
99,155.3
48,600.1
3,555.1
25,774.6
25,019.3
755.3
8,078.2
1,270.6
3,795.9
3,011.7
33,625.2
11,214.0
22,411.2
100,401.4
53,872.8
4,483.2
25,828.6
25,066.3
762.2
8,190.0
1,329.4
3,825.9
3,034.7
33,692.7
11,349.2
22,343.5
101,402.8
59,056.9
5,529.5
474.4
64.2
31,413.7
329.0
526.3
69.6
35,304.3
395.5
580.5
75.6
39,413.4
474.9
636.2
82.2
43,756.0
570.7
695.5
89.1
47,918.7
686.2
760.1
96.1
51,843.9
827.4
15,109.6
529.7
14,579.8
31,065.8
2,871.7
441.8
15,304.7
536.8
14,767.9
32,396.7
2,968.7
421.0
15,492.8
543.8
14,949.0
33,947.6
3,065.5
403.5
15,677.2
550.7
15,126.6
35,611.1
3,162.7
388.5
15,859.6
557.5
15,302.1
37,342.7
3,261.4
375.9
16,059.9
564.2
15,495.7
39,112.5
3,361.2
364.7
136.5
27,615.8
129.0
28,877.9
122.1
30,356.4
115.8
31,944.1
109.9
33,595.6
104.6
35,282.1
242,811.8
250,207.5
258,118.3
266,532.6
274,954.5
283,343.3
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 105
MXN million
Euromonitor International
2013
2014
2015
2016
2017
2018
7,725.7
6,868.3
7,685.7
6,815.6
7,651.2
6,770.0
7,581.9
6,695.4
7,532.3
6,637.5
7,502.1
6,599.7
82
- Cognac
Liqueurs
- Bitters
- Cream-Based Liqueurs
- Other Liqueurs
Rum
- Dark Rum
- White Rum
Tequila (and Mezcal)
Whiskies
- Bourbon/Other US
Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
- Blended Scotch Whisky
- Single Malt Scotch
Whisky
- Other Whiskies
White Spirits
- Gin
- Vodka
Other Spirits
- Aguardente/Aguardiente
- Aniseed-Flavoured
Spirits
- Charanda
- Other Distilled
Beverages
Spirits
Source:
Passport
857.4
3,392.9
710.4
1,584.1
1,098.4
9,727.6
3,587.6
6,140.1
44,530.1
24,656.2
1,173.7
870.0
3,463.0
744.4
1,609.6
1,109.0
9,782.5
3,656.7
6,125.8
45,287.2
28,246.0
1,547.8
881.2
3,536.3
778.4
1,635.5
1,122.3
9,836.6
3,722.9
6,113.8
45,964.3
32,193.5
2,017.7
886.4
3,590.8
806.9
1,653.7
1,130.2
9,891.4
3,788.4
6,103.0
46,569.5
36,567.2
2,589.9
894.8
3,650.4
835.6
1,673.6
1,141.2
9,947.6
3,853.3
6,094.3
47,125.6
41,052.5
3,258.5
902.4
3,713.8
864.2
1,695.9
1,153.7
9,986.7
3,910.0
6,076.7
47,542.0
45,601.4
4,003.3
227.3
73.4
22,771.5
410.3
252.1
80.1
25,856.7
509.2
279.2
87.2
29,183.9
625.5
305.5
95.0
32,813.0
763.8
333.7
103.3
36,424.9
932.2
364.5
112.1
39,983.4
1,138.2
7,105.3
285.0
6,820.3
2,562.2
359.6
101.1
7,199.5
288.7
6,910.8
2,660.9
368.3
96.2
7,273.2
292.2
6,980.9
2,779.2
377.4
92.3
7,300.2
293.3
7,006.9
2,900.0
387.2
88.9
7,324.5
294.2
7,030.3
3,022.0
397.1
86.4
7,352.9
294.3
7,058.6
3,142.6
407.2
84.2
7.2
2,094.3
6.8
2,189.6
6.4
2,303.2
6.0
2,417.9
5.7
2,532.8
5.4
2,645.8
99,700.0
104,324.7
109,234.4
114,401.0
119,654.9
124,841.3
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 106
Euromonitor International
2017/18
2013-18 CAGR
2013/18 Total
0.2
0.2
0.9
1.4
4.6
0.8
0.8
0.2
1.2
-0.3
1.0
9.6
23.3
9.3
7.9
8.2
20.6
1.3
1.2
-1.0
-1.0
0.9
1.3
5.1
0.9
0.4
0.1
1.4
-0.5
1.4
11.7
27.9
9.9
8.4
10.5
20.3
1.2
1.3
-4.9
-5.1
4.3
6.9
28.1
4.6
2.2
0.6
6.9
-2.3
7.4
74.2
242.7
60.2
49.7
65.0
151.5
6.3
6.5
83
- Vodka
Other Spirits
- Aguardente/Aguardiente
- Aniseed-Flavoured Spirits
- Charanda
- Other Distilled Beverages
Spirits
Source:
Passport
1.3
4.7
3.1
-3.0
-4.9
5.0
3.1
1.2
4.7
3.2
-3.8
-5.2
5.0
3.1
6.3
25.9
17.0
-17.5
-23.4
27.8
16.7
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 107
2013-18 CAGR
2013/18 TOTAL
-0.6
-0.8
1.0
1.8
4.0
1.4
1.0
0.5
1.7
-0.2
1.3
13.1
27.8
9.9
8.8
11.9
22.6
0.7
0.6
0.7
4.2
2.5
-3.6
-5.8
4.8
4.6
-2.9
-3.9
5.3
9.5
21.6
7.1
5.0
2.7
9.0
-1.0
6.8
84.9
241.1
60.3
52.7
75.6
177.4
3.5
3.3
3.5
22.7
13.2
-16.7
-26.0
26.3
25.2
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Euromonitor International
84
TRENDS
Wine consumption in Mexico is still a growing trend and it has apparently become stronger
amongst the middle-income classes where the boom of drinking wine has taken a lead, and
now companies are focusing their efforts on reaching this segment. Wine consumption has no
strong loyalty amongst Mexican consumers because they like to try new tastes, flavours and
types and get to know more about winery. Thus, companies efforts have to be stronger in
becoming strongly positioned amongst consumers minds.
2013s growth was slightly below the previous years growth, but this fact has more to do with
Mexicos weaker economic growth than the intrinsic facts of the category. Mexicos economy
was expected to grow at nearly 4% during 2013, but the latest results point to a very slow
growth of 1.3% at the time of writing this report. This lack of growth amongst consumers has
affected amongst other industries, the alcoholic drinks industry, but the forecasts for 2014 are
closer to previous performance in both volume and value terms.
The most dynamic category has been still red wine with 14% growth in current value terms
and 7% growth in volume in 2013 to reach 44 million litres. The reason for this category to
keep on being the strongest one is the growing consumption trend amongst consumers, both
young and older adults, but especially amongst women. Women are now more open to having
their own wine for gatherings with friends or dinners in both off- and on-trade channels;
therefore they are a very interesting target group who are also helping volume growth. An
interesting fact is that during 2013 the sparkling red wine variety Lambrusco had a strong
growth, with 5% volume share within the other sparkling wine category, and this type of wine
is mainly consumed by women. Other sparkling wine is the most strongly growing category of
all in volume terms during 2013, by over 7%.
Average unit price movement was faster in 2013 with 7% increase, reaching almost Mx$300
per litre. This situation is attributed to exchange rates, growing demand that helped producers
and retailers increase prices as they had not made strong increases in the previous year and
the fact that Mexican consumers are more into trying new products each time. And as at the
Euromonitor International
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85
beginning of the year the economic performance allowed it more, the middle- and upper-class
consumers were trying to get higher-priced brands.
During 2013 the sherry category saw a bigger decrease in sales than it already had been
seeing since 2009. Sherry is a drink more consumed by older adults and one has to keep in
mind that Mexicos economic performance during 2013 was slower than it was in previous
years, affecting especially categories those that were already with declining sales, which is
the case of Sherry. In 2013 the categorys decline was slightly less than 2% but it is expected
to see a better performance for 2014.
The off-trade channel is the most important in wine sales, accounting for 65% volume share in
2013. The on-trade channel accounted for the remaining 35% of the sales; however, this
percentage is increasing slightly and is expected to increase over the coming years. It is
important to mention that for security reasons or operations that police groups make to arrest
consumers who are caught driving with high alcohol levels, on-trade volume has difficulty
lifting off. This is besides the fact that on-trade prices are much higher than prices at off-trade
outlets where many promotions can be found.
Still red wine sales are still dominated by Cabernet Sauvignon, accounting for 55% volume
share in 2013 and followed in a distant second place by Tempranillo with 28% volume share,
being a popular wine that can marry almost every dish because of its softness. In terms of still
white wine, Chardonnay is the leading type in volume sales with 37% share, followed by
Sauvignon Blanc in second place with 30% share and closely followed in turn by Riesling with
29% share.
In terms of quality classification of wine, basic premium wines are still the leader in volume
sales of still white wine, accounting for 54% share in 2013, followed by basic wines with 40%
share. In still red wine the situation is almost the same with basic premium wines accounting
for 45% share of volume sales and followed by basic wines with 29% share of volume sales.
Mid-priced wines are the leading wines in sales in Mexico, with products priced from Mx$91 to
Mx$119.99 accounting for 30% share of volume sales in red still wine. Still red wine from
Mx$120 to Mx$149 and from Mx$150 to Mx$199 owned 19% and 20% volume share each.
For the still white wine category the bulk of sales are in the mid-priced band also, with wines
from Mx$91 to Mx$139.99 and from Mx$65 to Mx$90.99 owning 30% volume share each in
2013. Consumers are more eager and willing to try new products in red wine more than in
white wine and are willing to pay higher price for red wine. Still ros wine has the largest
share of sales between the prices of Mx$72 and Mx$90.99, giving this price band 28%
volume share as consumers show less intention to buy still ros wine when their decision
includes the possibility of red or white wines.
The majority of product offerings within other sparkling wine comprise cava-type products
from the Asti Martini brand owned by Bacardi y Cia SA de CV and the Freixenet brand offered
by Freixenet SA de CV. However, a surprise of 2013 was the remarkable performance of
other sparkling wine brand Riunite Lambrusco from Riunite Co, which targeted women and
had a major success amongst them, reaching a 5% volume share.
Domestic wines are still growing in popularity and thanks to the Consejo Mexicano
Vitivincola, the association of Mexican wine producers and wineries, Mexican production of
wine is becoming more popular. Domestic wine producers know the importance of the middleincome segment and how it is affecting the volume in wine, and they are investing in many
efforts to link young consumers in the middle- and high-income segments to domestic
products. However, still the bulk of the sales are of the imported products since the domestic
production is small, and older adults still believe that many imported brands are of higher
quality than some domestic ones and even sometimes at cheaper prices.
Euromonitor International
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86
Old World wine is still the most popular amongst Mexican consumers, who associate Old
World wine with high quality and winery knowledge. In previous years, Australian wines were
gaining in importance and popularity amongst consumers, especially because of their good
price-quality equation, but this trend ended very soon. However, wines from the New World,
especially from countries like Chile and Argentina, have been very popular for years now and
are still perceived as good-quality products with good prices, and therefore as good choices
compared to Italian or Spanish wines with maybe higher prices. These decisions are equally
made by younger or middle-aged adults.
The most popular packaging in Mexico for wine is definitely the 750ml glass bottle, although
larger glass bottles also have presence, especially for less expensive brands. Only a few
brands are sold in carton bricks, but as a category that is consumed because of the premium
appeal that it reflects, carton tetra bricks are not the best option of showing off the brands.
According to the Consejo Mexicano Vitivincola, per capita consumption is expected to
increase very slightly and be between 1.5 and 2 litres over the forecast period as it is believed
to be right now. Key consumers of wine are middle-aged men from mid- and high-income
segments who are the biggest wine consumers. However, the current boom in both domestic
and international wine consumption has been largely due to low-middle and middle-income
consumers with especial focus on consumers between ages 25 and 35 who visit more often
the on-trade channels and who are more willing to try wines, especially mid-priced wines
which are more available now in the on-trade and off-trade channels throughout Mexico.
COMPETITIVE LANDSCAPE
La Madrilea SA de CV led sales during 2013 with 22% volume share. The company is the
exclusive distributor in Mexico of wines from E&J Gallo Winery, Las Moras de Grupo Peaflor
(Argentina) and Via Tarapac and Misiones de Rengo (Chile), and this company has
benefited from Mexicans preference for its offered foreign wine brands. One of La
Madrileas most successful brands is Jerez Tres Coronas, a very popular sherry, especially
in cooking and in a very popular beverage with orange juice and egg, which is very much
Euromonitor International
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87
consumed amongst low- and middle-income consumers in the mornings, and which can be
found at many street corner stalls. La Madrilea has also benefitted from selling E&J Gallo
brands at very reasonable prices, and selling less expensive wines has helped the company
to maintain high volume sales in Mexico by making wine more accessible to younger
consumers and those with lower incomes, which make up the bulk of consumers who are
accounting for the highest volume growth.
During 2013 volume sales amongst companies were pretty stable; therefore no company saw
any significant increases or decreases.
International manufacturers lead sales in wine since the bulk of products consumed in the
category by Mexican consumers are imported. La Madrilea imports brands from other
countries like the US with E&J Gallo, and Argentina with Las Moras de Grupo Peaflor.
Mexican production is getting more recognised in terms of quality and is growing in
consumers minds and preferences; however, the volume is still small. The production in
Mexico is expected to continue to be limited since the high taxation on the industry, the need
for infrastructure improvements, difficulty in attracting new investors and competition from
subsidised wines from Chile and Argentina make some Mexican wines much higher priced
than some imported wines, which does not really make sense to many Mexican consumers,
though they are interested in Mexican wine.
No key new launches were detected during 2013 in wine and though the Consejo Mexicano
Vitivincola is interested in promoting Mexican wine in the mass media, this has not happened
yet during 2013.
No packaging innovations were detected during the review period. 750ml glass bottles are the
most widely used packaging of wine. Also, larger glass bottles are used for lower-priced
products, whereas it is easier to see recognised brands in 355ml glass bottle presentations.
The majority of sales in Mexico are from wines within the standard and mid-priced brands,
which also are the highest in distribution through off-trade channels. The distribution of
premium brands is more restricted to specialised stores or to gourmet sections of some
department stores like El Palacio De Hierro or recently in 2013 in Liverpool. The availability of
standard brands in the on-trade channel is more limited due to the limited offer of wines that
restaurants and bars typically offer on their menus; and the availability of premium brands in
on-trade channels is not significant since they are available more in niche stores for niche
consumer groups. Economy brands are popular amongst consumers who do not claim any
knowledge of wine, and this is more seen in the off-trade channels.
Private label wine products were not detected during 2013.
No merger and acquisition activity in the Mexican wine category occurred in 2013.
PROSPECTS
Wine consumption is expected to continue growing in popularity amongst Mexican
consumers, especially in the middle-income segment of the population. Middle-income
consumers are the widest part of the economically active part of the Mexican citizens and
have been the drivers of growth in wine for some years now and especially during 2013. The
middle-income segment is increasing according to INEGI (National Institute of Statistics and
Geography) and Banco Mundial which mentioned that the middle class has been increasing
at double-digit rates for the past 10 years in all Latin America. Companies will invest efforts in
young adults who are in the middle-income segment to link them more strongly with the wine
consumption trend. Wine consumption is expected to increase amongst young adults and in
particular, Mexican wine products will benefit from this, since the interest in trying new
Euromonitor International
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88
products will be also very linked to supporting Mexican industry with well-perceived and
qualified Mexican wines. Educational and marketing campaigns as well as marketing
activations at the points of sale or in special events will be held to bring the consumers closer
to Mexican wines.
Forecast CAGR in volume terms for wine is 9% until 2018, which is very stable compared to
the forecast period CAGR of 8% in the last edition. This strong growth will be driven by the
increasing trend of consuming wine amongst young adults and especially amongst women, as
well as the increasing efforts and subsequent results in attracting middle-income consumers
who are increasingly entering the wine trend and are driving the categorys growth. The
Mexican wine council, Consejo Mexicano Vitivincola, will also help promoting wine
consumption amongst Mexicans all over the country, thus helping the categorys growth.
Growth rates are expected to continue increasing due to the efforts of the Consejo Mexicano
Vitivincola to promote Mexican wine, and private companies efforts to promote wine
consumption in general amongst young adults, especially those in the middle-income classes.
Another effect that might help volume growth is the fact that security issues that happened in
the past years, namely the term of the last previous president, have now declined, letting
tourism come back to Mexico and to the vineyard tours, fairs and cities.
Potential forecast threats have to do mainly with two things, the first being economic changes
that would make exchange rates fluctuate greatly and drive up prices of imported wines which
account for the majority of sales, namely 70%. The other main threat has to do with domestic
production; if any natural event should occur and affect domestic wine production, all efforts in
promoting Mexican wines would not have the desired effects, thus lowering the demand of
this 30% of the market share. One must keep in mind that many Mexican wines are at the
same price band or maybe even higher than some imported ones, and this is when
consumers hesitate in supporting Mexican products. If a natural disaster occurs affecting
Mexican production prices, this hesitation amongst consumers would cause them to turn to
imported products.
Still red wine is expected to keep on leading sales over the forecast period, as it is the
category that is leading the trend of wine consumption amongst Mexican consumers. Still red
wine is expected to grow at 11% CAGR in volume terms until 2018 as the middle classes in
Mexico keep on entering and reinforcing this categorys growth. Still red wine includes many
product varieties and prices, more than any other wine category, thus achieving almost every
type of consumers preferences and budgets.
Average unit price growth is expected to be stable above inflation rates over the forecast
period. With an increasing trend amongst consumers, wine manufacturers and distributors
might be able to increase prices according to inflation rates but compete with price
promotions, especially in the off-trade channel where purchase decisions are more thought
out before they are made. Price promotion is a strategy widely used amongst companies and
it is expected to continue being so over the forecast period.
Companies are expected to invest efforts in attracting new consumers, especially those in the
middle-income segment, to drive the categorys growth. Young adults, who are in the majority
inside this segment, will be targeted with price promotions and marketing strategies such as
event invitations and tasting sessions to make them experience the wine culture and live an
aspirational lifestyle.
The on-trade and off-trade channels are expected to perform similarly in growth terms over
the forecast period; however, the basis of each channel is quite different, with a bigger overall
growth expected in the off-trade channel. On-trade sales are a growing trend amongst
consumers and wine consumption in restaurants is making the average ticket grow, a trend
that is expected to continue through the forecast period. However, off-trade volume is bigger
Euromonitor International
Passport
89
Passport
and is expected to continue growing at 8% CAGR over the forecast period with price
promotions and bigger retail wine spaces that make consumers want to enter the wine section
and start the wine experience from there. This example can be seen at hypermarkets like
Chedraui, which in its new Selecto format has a more specialised wine section with divisions
tagging the countries from where wines come from and which has woodlike floors giving a
more comfortable look more suitable to wine products.
CATEGORY DATA
Table 108
million litres
2008
2009
2010
2011
2012
2013
10.1
10.2
10.5
10.5
10.4
10.4
9.2
0.1
0.1
0.7
9.5
0.6
8.9
41.1
30.0
2.0
9.1
60.6
9.4
0.1
0.1
0.7
8.0
0.4
7.6
41.1
30.0
1.9
9.2
59.3
9.6
0.1
0.1
0.7
7.6
0.5
7.1
45.1
33.7
1.8
9.6
63.2
9.6
0.1
0.1
0.7
8.0
0.5
7.5
48.9
36.9
1.9
10.1
67.4
9.5
0.1
0.1
0.7
8.6
0.6
8.0
53.4
40.8
2.0
10.6
72.4
9.5
0.1
0.1
0.7
9.2
0.6
8.6
56.8
43.7
2.1
11.1
76.4
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 109
MXN million
2008
2009
2010
2011
2012
2013
2,276.5
2,304.6
2,491.8
2,612.0
2,694.3
2,796.5
2,044.8
34.9
30.3
166.6
2,990.0
782.8
2,207.2
8,681.0
6,542.6
405.6
1,732.8
13,947.5
2,074.2
30.7
27.2
172.4
2,518.2
549.9
1,968.3
9,399.5
7,201.7
438.7
1,759.1
14,222.3
2,247.3
32.9
27.0
184.6
2,666.3
663.0
2,003.2
10,890.4
8,524.5
448.3
1,917.6
16,048.5
2,349.7
34.8
27.6
199.8
2,950.2
770.0
2,180.2
12,303.9
9,706.1
491.4
2,106.4
17,866.0
2,416.6
35.4
28.9
213.5
3,280.4
876.5
2,404.0
14,220.2
11,267.9
552.6
2,399.7
20,195.0
2,508.7
36.4
29.3
222.1
3,657.1
976.6
2,680.5
16,112.2
12,842.2
608.2
2,661.8
22,565.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
90
Table 110
Passport
2012/13
2008-13 CAGR
2008/13 Total
-0.2
-0.4
0.7
-1.8
1.4
7.2
6.8
7.3
6.4
7.1
3.4
4.2
5.5
0.6
0.6
-2.3
-3.1
1.6
-0.6
0.8
-0.6
6.7
7.8
0.9
3.9
4.7
2.9
2.9
-10.8
-14.6
8.2
-2.8
3.9
-3.2
38.2
45.6
4.3
21.3
25.9
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 111
2012/13
2008-13 CAGR
2008/13 Total
3.8
3.8
2.7
1.4
4.0
11.5
11.4
11.5
13.3
14.0
10.1
10.9
11.7
4.2
4.2
0.8
-0.7
5.9
4.1
4.5
4.0
13.2
14.4
8.4
9.0
10.1
22.8
22.7
4.2
-3.3
33.3
22.3
24.8
21.4
85.6
96.3
50.0
53.6
61.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 112
million litres
Off-trade
On-trade
Total
Source:
2008
2009
2010
2011
2012
2013
36.5
24.1
60.6
38.3
21.0
59.3
40.7
22.5
63.2
43.6
23.8
67.4
47.0
25.3
72.4
49.4
27.0
76.4
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
91
Table 113
Passport
MXN million
Off-trade
On-trade
Total
Source:
2008
2009
2010
2011
2012
2013
4,733.2
9,214.3
13,947.5
5,142.3
9,080.0
14,222.3
5,731.2
10,317.2
16,048.5
6,406.1
11,460.0
17,866.0
7,344.1
12,850.8
20,195.0
8,139.4
14,426.4
22,565.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 114
% volume growth
Off-trade
On-trade
Total
Source:
2012/13
2008-13 CAGR
2008/13 TOTAL
5.0
6.6
5.5
6.2
2.3
4.7
35.1
12.0
25.9
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 115
Off-trade
On-trade
Total
Source:
2012/13
2008-13 CAGR
2008/13 TOTAL
10.8
12.3
11.7
11.5
9.4
10.1
72.0
56.6
61.8
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 116
% off-trade
Under MXN35.99
MXN36 to MXN64.99
MXN65 to MXN90.99
MXN91 to MXN119.99
MXN120 to MXN149.99
MXN150 to MXN199.99
MXN200 and above
Total
Source:
2008
2009
2010
2011
2012
2013
8.0
17.8
28.9
20.5
19.3
5.7
100.0
9.2
18.0
29.0
20.8
19.8
3.2
100.0
8.7
19.0
29.7
19.0
20.0
3.6
100.0
8.7
18.8
29.6
19.3
20.0
3.6
100.0
8.6
18.7
30.0
19.4
19.7
3.7
100.0
8.1
18.7
30.2
19.4
19.9
3.7
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 117
Euromonitor International
92
Passport
% off-trade
Under MXN35.99
MXN36 to MXN64.99
MXN65 to MXN90.99
MXN91 to MXN139.99
MXN140 to MXN199.99
MXN200 and above
Total
Source:
2008
2009
2010
2011
2012
2013
1.1
20.0
26.5
28.6
18.0
5.8
100.0
1.0
20.8
28.2
29.0
17.7
3.3
100.0
1.6
19.6
29.0
29.2
17.5
3.1
100.0
1.5
19.4
29.5
29.4
17.4
2.8
100.0
1.5
19.3
29.7
29.5
17.3
2.7
100.0
1.4
19.4
29.8
29.6
17.4
2.5
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 118
% off-trade
Under MXN35.99
MXN36 to MXN64.99
MXN65 to MXN71.99
MXN72 to MXN90.99
MXN91 to MXN139.99
MXN140 to MXN199.99
MXN200 and above
Total
Source:
2008
2009
2010
2011
2012
2013
13.0
16.5
24.0
29.5
11.6
5.4
100.0
14.0
17.6
26.1
27.0
12.2
3.1
100.0
13.5
17.5
27.5
26.0
12.7
2.8
100.0
13.3
17.7
27.6
26.4
12.9
2.1
100.0
13.2
17.8
27.6
26.5
13.0
1.9
100.0
13.2
17.9
27.7
26.5
13.0
1.7
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 119
% off-trade
Under MXN165.99
MXN166 to MXN199.99
MXN200 to MXN229.99
MXN230 to MXN259.99
MXN260 and above
Total
Source:
2008
2009
2010
2011
2012
2013
6.6
19.1
27.5
29.2
17.6
100.0
11.0
20.1
25.3
28.4
15.2
100.0
13.0
19.0
24.0
27.0
17.0
100.0
13.2
18.7
23.8
27.3
17.0
100.0
13.3
18.5
23.5
27.5
17.2
100.0
13.3
18.7
23.5
27.4
17.1
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 120
% total volume
Cabernet Sauvignon
Lambrusco
Merlot
Shiraz/Syrah
Tempranillo
Others
Euromonitor International
2008
2009
2010
2011
2012
2013
54.6
1.3
10.4
4.1
28.4
1.4
54.6
1.2
10.4
4.0
28.5
1.3
54.3
1.2
10.4
4.0
29.0
1.2
54.1
1.2
10.4
4.0
29.0
1.3
54.0
1.3
10.5
4.0
29.0
1.3
54.5
1.5
10.6
3.9
28.4
1.2
93
Total
Source:
Passport
100.0
100.0
100.0
100.0
100.0
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 121
% total volume
Chardonnay
Chenin Blanc
Riesling
Sauvignon Blanc
Others
Total
Source:
2008
2009
2010
2011
2012
2013
34.2
1.5
35.3
27.3
1.8
100.0
35.0
1.6
31.0
28.0
4.3
100.0
36.0
2.0
29.0
29.0
4.0
100.0
36.3
2.0
28.8
29.1
3.8
100.0
36.4
2.0
28.8
29.2
3.7
100.0
36.5
1.9
28.6
29.6
3.4
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 122
% total volume
Zinfandel
Others
Total
Source:
2008
2009
2010
2011
2012
2013
62.8
37.2
100.0
62.9
37.1
100.0
63.0
37.0
100.0
63.1
36.9
100.0
63.3
36.8
100.0
63.3
36.7
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 123
% total volume
Basic
Basic Premium
Premium
Super Premium
Total
Source:
2008
2009
2010
2011
2012
2013
30.5
43.7
23.5
2.3
100.0
30.2
44.1
23.5
2.2
100.0
29.6
44.5
23.6
2.3
100.0
29.4
44.6
23.7
2.3
100.0
29.5
44.7
23.4
2.4
100.0
29.4
44.8
23.5
2.4
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 124
% total volume
Basic
Basic Premium
Premium
Super Premium
Total
Euromonitor International
2008
2009
2010
2011
2012
2013
40.8
53.1
4.6
1.5
100.0
41.0
53.1
4.5
1.5
100.0
40.7
53.4
4.5
1.4
100.0
40.4
53.7
4.5
1.4
100.0
40.3
53.8
4.4
1.5
100.0
40.2
53.9
4.5
1.4
100.0
94
Source:
Passport
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 125
% total volume
Basic
Basic Premium
Premium
Total
Source:
2009
2010
2011
2012
2013
50.3
48.5
1.3
100.0
50.3
48.5
1.2
100.0
49.9
48.9
1.2
100.0
49.8
49.0
1.2
100.0
49.8
49.0
1.2
100.0
49.7
49.0
1.3
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 126
GBO Company Shares of Still Light Grape Wine: % Total Volume 2009-2013
% total volume
Company
Pernod Ricard Groupe
Vincola LA Cetto SA de
CV
E&J Gallo Winery Inc
Via Concha y Toro SA
Allied Domecq Plc
Pando, Grupo SA de CV
Monte Xanic SA de CV
Valle Redondo SA de CV
Grupo Peaflor SA
Unin Vitivincola
Viedos de Cenicero SA
Ca Cerveceras Unidas SA
Via Santa Carolina SA
La Madrilea SA de CV
Via Santa Rita SA
Miguel Torres SA
Federico Paternina SA
Vinos de los Herederos
del Marqus de Riscal SA
Beam Inc
Fortune Brands Inc
Others
Total
Source:
2008
2009
2010
2011
2012
2013
13.0
11.0
13.2
11.3
13.4
11.4
14.7
11.5
14.0
12.0
10.7
12.4
2.5
2.5
2.5
2.2
2.0
10.9
12.9
2.5
2.4
2.4
2.3
2.1
11.1
11.0
2.6
2.4
2.4
2.3
2.1
11.2
11.2
3.2
2.6
2.4
2.4
2.3
2.1
11.6
11.6
3.0
2.7
2.5
2.4
2.4
2.2
1.4
1.1
1.2
0.9
1.2
0.9
1.1
1.4
1.3
1.3
1.2
1.2
1.0
1.1
1.5
1.3
1.3
1.2
1.1
1.0
1.0
1.5
1.3
1.3
1.2
1.1
1.0
1.0
1.6
1.4
1.3
1.2
1.2
1.1
1.0
3.2
30.2
100.0
3.3
28.4
100.0
3.2
29.8
100.0
27.9
100.0
26.9
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 127
NBO Company Shares of Still Light Grape Wine: % Total Volume 2009-2013
% total volume
Company
Pernod Ricard Mxico SA
de CV
La Madrilea SA de CV
Vincola LA Cetto SA de
Euromonitor International
2009
2010
2011
2012
2013
18.9
18.0
12.0
11.0
12.2
11.3
12.3
11.4
12.5
11.5
12.9
12.0
95
Passport
CV
Digrans SA de CV
Bodegas Santo Toms SA
de CV
Monte Xanic SA de CV
Valle Redondo SA de CV
Grupo Peaflor SA
Jess Biurrn
Echeverra SA de CV
Comercializadora Mexico
Americana SA de CV
Importaciones Colombres
SA de CV
Distribuidora Dolgo
Bodegas La Negrita SA
de CV
Marinter SA de CV
Casa Pedro Domecq
Mexico SA de CV
Others
Total
Source:
12.9
2.5
11.0
2.6
11.2
2.6
11.6
2.7
2.5
2.5
2.2
2.0
2.4
2.4
2.3
2.1
2.4
2.4
2.3
2.1
2.4
2.4
2.3
2.1
2.5
2.4
2.4
2.2
1.4
1.4
1.5
1.5
1.6
1.1
1.3
1.3
1.3
1.4
0.9
1.2
1.2
1.2
1.2
1.1
1.2
1.1
1.2
1.2
0.9
17.3
1.0
17.6
1.0
17.6
1.0
-
1.1
-
30.2
100.0
28.4
100.0
29.8
100.0
27.9
100.0
26.9
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 128
LBN Brand Shares of Still Light Grape Wine: % Total Volume 2010-2013
% total volume
Brand (Global Brand
Owner)
La Cetto
Concha y Toro (Via
Concha y Toro SA)
XA Domecq (Pernod
Ricard Groupe)
E & J Gallo (E&J
Gallo Winery Inc)
Carlo Rossi (E&J
Gallo Winery Inc)
Padre Kino (Pernod
Ricard Groupe)
Casillero del
Diablo (Via Concha
y Toro SA)
Calafia (Allied
Domecq Plc)
Santo Toms (Pando,
Grupo SA de CV)
Monte Xanic
XA Domecq (Pernod
Ricard Groupe)
Padre Kino (Pernod
Ricard Groupe)
Calafia (Fortune
Brands Inc)
Others
Total
Source:
12.4
2.5
Company
Vincola LA Cetto SA de CV
Digrans SA de CV
2010
2011
2012
2013
8.5
7.8
8.4
6.8
8.5
6.8
9.0
7.0
6.7
6.5
5.9
6.0
6.0
6.2
La Madrilea SA de CV
5.0
5.1
5.1
5.3
3.7
3.5
3.9
3.4
3.4
3.5
3.2
3.0
2.5
2.6
2.6
2.7
2.4
6.5
2.4
6.7
2.4
-
2.5
-
3.6
3.7
3.3
50.5
100.0
55.1
100.0
51.4
100.0
50.6
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Euromonitor International
96
Table 129
Passport
% total volume
Company
LVMH Mot Hennessy
Louis Vuitton SA
Champagne Delbeck
Others
Total
Source:
2011
2012
2013
91.6
87.0
85.6
86.2
87.9
5.4
3.0
100.0
5.2
7.8
100.0
5.0
9.3
100.0
5.0
8.8
100.0
5.0
7.1
100.0
% total volume
Company
Inter SA de CV
Ferrer y Asociados SA
de CV
Vinos y Alimentos de
Calidad SA de CV
Others
Total
2009
2010
2011
2012
2013
64.7
26.9
60.1
26.9
58.9
26.8
59.4
26.8
60.7
27.2
5.4
5.2
5.0
5.0
5.0
3.0
100.0
7.8
100.0
9.3
100.0
8.8
100.0
7.1
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 131
% total volume
Brand (Global Brand
Owner)
Mot & Chandon
(LVMH Mot Hennessy
Louis Vuitton SA)
Veuve Clicquot
(LVMH Mot Hennessy
Louis Vuitton SA)
Dom Prignon (LVMH
Mot Hennessy Louis
Vuitton SA)
Delbeck (Champagne
Delbeck)
Others
Total
Source:
2010
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 130
Source:
2009
Company
2010
2011
2012
2013
Inter SA de CV
60.1
58.9
59.4
60.7
Ferrer y Asociados SA
de CV
18.7
18.6
18.6
18.8
Ferrer y Asociados SA
de CV
8.2
8.2
8.3
8.5
Vinos y Alimentos de
Calidad SA de CV
Others
Total
5.2
5.0
5.0
5.0
7.8
100.0
9.3
100.0
8.8
100.0
7.1
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 132
Euromonitor International
97
Passport
% total volume
Company
2009
2010
2011
2012
2013
Freixenet SA
Bacardi & Co Ltd
Codornu SA
Riunite Co
Others
Total
51.7
34.6
9.2
4.5
100.0
51.9
34.2
9.0
4.2
0.7
100.0
51.6
34.0
8.8
4.0
1.5
100.0
50.4
33.7
8.6
4.0
3.2
100.0
49.4
33.5
8.4
5.2
3.5
100.0
Source:
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 133
% total volume
Company
Freixenet SA de CV
Bacardi y Cia SA de CV
Jess Biurrn
Echeverra SA de CV
Importaciones y
Distribuciones
Internacionales SA de CV
Others
Total
Source:
2010
2011
2012
2013
51.7
34.6
9.2
51.9
34.2
9.0
51.6
34.0
8.8
50.4
33.7
8.6
49.4
33.5
8.4
4.2
4.0
4.0
5.2
4.5
100.0
0.7
100.0
1.5
100.0
3.2
100.0
3.5
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 134
% total volume
Brand (Global Brand
Owner)
Asti Martini
(Bacardi & Co Ltd)
Petillant Freixenet
(Freixenet SA)
Freixenet
(Freixenet SA)
Castellblanch
(Freixenet SA)
Codornu (Codornu
SA)
Riunite Lambruco
(Riunite Co)
Others
Total
Source:
2009
Company
2010
2011
2012
2013
Bacardi y Cia SA de CV
34.2
34.0
33.7
33.5
Freixenet SA de CV
23.6
23.6
23.0
22.5
Freixenet SA de CV
18.9
18.9
18.5
18.2
Freixenet SA de CV
9.4
9.1
8.9
8.7
Jess Biurrn
Echeverra SA de CV
Importaciones y
Distribuciones
Internacionales SA de CV
Others
Total
9.0
8.8
8.6
8.4
4.2
4.0
4.0
5.2
0.7
100.0
1.5
100.0
3.2
100.0
3.5
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 135
Euromonitor International
98
Passport
% total volume
Company
La Madrilea SA de CV
Bacardi & Co Ltd
Campari Milano SpA,
Davide
Destiladora Ibarra
Pernod Ricard Groupe
Sogrape - Vinhos de
Portugal SA
Fladgate Partnership, The
Gonzlez Byass SA
Valle Redondo SA de CV
Grupo Osborne SA
Bodegas Williams &
Humbert SA
Messias SA
Others
Total
Source:
2010
2011
2012
2013
89.6
1.7
1.0
89.9
1.8
1.0
89.4
1.9
1.0
89.5
2.0
1.1
89.6
2.0
1.1
0.7
0.8
0.5
0.7
0.8
0.5
0.8
0.8
0.5
0.8
0.8
0.5
0.8
0.8
0.5
0.3
0.2
0.2
0.1
0.1
0.3
0.2
0.2
0.1
0.1
0.3
0.2
0.2
0.1
0.1
0.3
0.2
0.2
0.1
0.1
0.3
0.2
0.2
0.1
0.1
0.1
4.9
100.0
0.1
4.3
100.0
0.1
4.6
100.0
0.1
4.3
100.0
0.1
4.2
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 136
% total volume
Company
La Madrilea SA de CV
Martini & Rossi SA de CV
Tequila Orendain de
Jalisco SA de CV
Destiladora Ibarra SA
de CV
Bacardi y Cia SA de CV
Exclusivas Benet SA de CV
Grandes Viedos de
Francia SA de CV
Gonzlez Byass de
Mxico SA de CV
Valle Redondo SA de CV
Palacio de Hierro SA de
CV
Casa Pedro Domecq
Mexico SA de CV
Others
Total
Source:
2009
2009
2010
2011
2012
2013
89.6
1.7
1.0
89.9
1.8
1.0
89.4
1.9
1.0
89.5
2.0
1.1
89.6
2.0
1.1
0.7
0.7
0.8
0.8
0.8
0.8
0.6
0.3
0.8
0.6
0.3
0.8
0.6
0.3
0.8
0.6
0.3
0.8
0.6
0.3
0.2
0.2
0.2
0.2
0.2
0.2
0.1
0.2
0.1
0.2
0.1
0.2
0.1
0.2
0.1
0.1
0.1
0.1
4.9
100.0
4.3
100.0
4.6
100.0
4.4
100.0
4.3
100.0
2012
2013
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 137
LBN Brand Shares of Fortified Wine and Vermouth: % Total Volume 20102013
% total volume
Brand (Global Brand
Euromonitor International
Company
2010
2011
99
Passport
Owner)
Tres Coronas
Martini (Bacardi &
Co Ltd)
Cinzano (Campari
Milano SpA, Davide)
Valetti
(Destiladora Ibarra)
Dubonnet (Pernod
Ricard Groupe)
Ferreira (Sogrape Vinhos de Portugal
SA)
Fonseca (Fladgate
Partnership, The)
To Pepe (Gonzlez
Byass SA)
Valle Redondo
Generoso
Dry Sack (Bodegas
Williams & Humbert
SA)
La Ina (Grupo
Osborne SA)
Others
Total
Source:
La Madrilea SA de CV
Martini & Rossi SA de CV
89.9
1.8
89.4
1.9
89.5
2.0
89.6
2.0
Tequila Orendain de
Jalisco SA de CV
Destiladora Ibarra SA
de CV
Bacardi y Cia SA de CV
1.0
1.0
1.1
1.1
0.7
0.8
0.8
0.8
0.8
0.8
0.8
0.8
Exclusivas Benet SA de CV
0.5
0.5
0.5
0.5
Grandes Viedos de
Francia SA de CV
Gonzlez Byass de
Mxico SA de CV
Valle Redondo SA de CV
0.3
0.3
0.3
0.3
0.2
0.2
0.2
0.2
0.2
0.2
0.2
0.2
Exclusivas Benet SA de CV
0.1
0.1
0.1
0.1
0.1
0.1
4.4
100.0
4.7
100.0
4.5
100.0
4.4
100.0
Euromonitor International from official statistics, trade associations, trade press, company research,
store checks, trade interviews, trade sources
Table 138
million litres
Wine Imports
Wine Apparent
consumption
Wine Exports
Wine Production
Source:
Note:
2007
2008
2009
2010
2011
2012
39.1
38.4
48.9
48.1
38.9
36.5
44.5
43.4
45.9
44.8
44.6
43.4
0.8
-
0.8
-
2.4
-
1.1
-
1.2
-
1.2
-
Table 139
million litres
Wine Spain
Wine Chile
Wine Italy
Wine Argentina
Wine US
Wine France
Wine Germany
Wine Australia
Wine Portugal
Euromonitor International
2007
2008
2009
2010
2011
2012
9.0
13.8
3.5
5.0
2.6
2.5
1.4
0.4
0.5
10.6
21.1
4.2
4.3
3.3
2.6
1.6
0.4
0.4
8.0
16.8
4.2
3.6
2.5
1.9
0.6
0.4
0.5
10.6
15.6
5.2
4.1
3.4
2.5
0.8
0.4
0.4
13.9
13.3
6.3
4.6
3.4
2.5
0.8
0.3
0.5
13.3
11.2
7.7
4.3
3.3
2.6
1.0
0.4
0.3
100
Passport
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
39.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
48.9
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
38.9
0.3
0.7
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.3
44.5
0.2
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
45.9
0.1
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
44.6
Table 140
MX$ million
Wine Spain
Wine France
Wine Chile
Wine Italy
Wine Argentina
Wine US
Wine Germany
Wine Australia
Wine Portugal
Wine South Africa
Wine Uruguay
Wine New Zealand
Wine Greece
Wine Israel
Wine Canada
Wine Hungary
Wine Lebanon
Wine Slovenia
Wine Romania
Wine Austria
Wine Bulgaria
Wine United Kingdom
Wine Algeria
Wine Switzerland
Wine Peru
Wine Others
Wine Total
Source:
Note:
2007
2008
2009
2010
2011
2012
491.2
297.0
320.2
155.5
126.1
103.7
39.4
21.2
23.0
2.9
4.3
2.3
1.0
0.4
0.6
0.5
0.1
0.2
0.0
0.1
0.0
0.9
1,590.5
634.9
402.1
380.4
194.8
141.2
129.2
53.0
24.2
20.5
5.4
4.8
3.7
1.1
0.9
0.5
0.6
0.0
0.2
2.0
0.0
0.0
0.0
0.3
1,999.8
615.7
337.3
407.6
210.7
184.7
106.5
27.9
23.0
22.5
7.3
4.8
3.4
2.0
1.0
1.0
0.7
0.5
0.2
0.2
1.3
0.0
0.0
0.0
0.2
0.1
0.5
1,959.0
636.4
344.6
425.0
217.5
194.9
123.8
31.8
25.3
20.6
14.8
9.2
3.9
1.6
0.9
0.6
0.2
0.6
0.3
0.2
0.2
0.3
0.0
0.0
0.5
0.1
2.0
2,055.2
744.7
407.7
452.0
272.2
222.5
137.2
31.6
20.5
24.4
7.9
5.5
2.7
1.5
0.6
0.9
0.5
0.5
0.1
0.2
0.1
0.3
0.1
0.1
0.1
0.1
0.2
2,334.3
777.3
457.5
445.1
346.5
234.8
154.7
41.5
21.8
20.7
6.9
6.9
3.2
2.2
1.7
1.0
0.9
0.8
0.6
0.4
0.4
0.2
0.2
0.1
0.0
0.0
0.2
2,525.5
Table 141
Euromonitor International
101
Passport
million litres
Wine Japan
Wine US
Wine Canada
Wine Germany
Wine France
Wine Belgium
Wine Denmark
Wine Unidentified
Country
Wine Guatemala
Wine United Kingdom
Wine Netherlands
Wine Honduras
Wine Swaziland
Wine El Salvador
Wine Panama
Wine Haiti
Wine Belize
Wine Costa Rica
Wine Netherlands
Antilles
Wine Italy
Wine Poland
Wine Taiwan
Wine Trinidad & Tobago
Wine Finland
Wine Spain
Wine Others
Wine Total
Source:
Note:
2007
2008
2009
2010
2011
2012
0.1
0.4
0.1
0.1
0.0
0.1
0.1
0.4
0.0
0.0
0.2
0.0
1.8
0.3
0.0
0.0
0.0
0.0
0.0
0.5
0.4
0.0
0.0
0.0
0.0
0.0
0.0
0.5
0.2
0.1
0.1
0.0
0.0
0.0
0.0
0.5
0.2
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-
0.0
0.0
0.0
0.0
-
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.8
0.0
0.0
0.0
0.8
0.0
0.0
0.0
0.0
0.0
2.4
0.0
0.0
0.0
0.0
1.1
0.0
0.0
0.0
0.0
1.2
0.0
0.0
1.2
Table 142
MX$ million
Wine Japan
Wine Unidentified
Country
Wine US
Wine Canada
Wine France
Wine Denmark
Wine Belgium
Wine Germany
Wine Netherlands
Wine United Kingdom
Wine Belize
Wine Guatemala
Wine Switzerland
Wine Honduras
Wine El Salvador
Wine Panama
Wine Haiti
Euromonitor International
2007
2008
2009
2010
2011
2012
2.3
7.7
2.4
7.5
14.7
6.2
23.8
8.5
23.9
11.0
26.7
13.6
14.6
1.6
0.8
0.9
0.6
0.4
0.6
-
18.0
1.2
0.6
2.1
0.7
0.4
0.5
0.0
-
23.5
0.0
1.7
0.9
0.0
0.8
0.3
0.7
0.8
0.1
0.0
22.4
1.4
0.4
0.0
0.9
0.0
0.6
0.9
0.2
0.7
0.1
0.0
10.6
9.1
1.1
1.9
0.7
1.6
0.8
0.3
0.1
0.4
0.0
0.1
0.1
0.0
0.1
11.8
7.7
1.9
1.8
1.5
1.3
0.7
0.7
0.6
0.6
0.3
0.2
0.2
0.1
0.0
102
Passport
0.0
-
0.4
-
0.3
0.0
0.2
-
0.0
0.2
0.0
0.0
0.1
0.0
0.2
29.7
0.2
0.0
0.1
0.3
34.3
0.1
0.3
0.0
50.4
0.4
0.3
0.0
0.0
0.1
61.0
0.2
0.5
0.3
0.2
0.1
0.0
0.0
63.4
0.0
0.5
70.2
Table 143
million litres
2013
2014
2015
2016
2017
2018
10.4
10.5
10.6
10.6
10.7
10.8
9.5
0.1
0.1
0.7
9.2
0.6
8.6
56.8
43.7
2.1
11.1
76.4
9.6
0.1
0.1
0.7
9.9
0.7
9.2
61.7
47.9
2.2
11.6
82.1
9.6
0.1
0.1
0.7
10.6
0.7
9.9
67.2
52.8
2.3
12.2
88.4
9.7
0.1
0.1
0.8
11.3
0.8
10.5
74.2
59.0
2.4
12.8
96.1
9.8
0.1
0.1
0.8
12.0
0.8
11.2
82.2
66.3
2.5
13.4
104.9
9.9
0.1
0.1
0.8
12.8
0.9
11.9
91.5
74.9
2.6
14.0
115.1
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 144
MXN million
Euromonitor International
2013
2014
2015
2016
2017
2018
2,796.5
2,815.0
2,842.4
2,872.4
2,906.6
2,941.3
2,508.7
36.4
29.3
222.1
3,657.1
976.6
2,680.5
16,112.2
12,842.2
608.2
2,661.8
22,565.8
2,524.5
36.4
29.2
225.0
3,952.5
1,058.1
2,894.4
17,895.7
14,388.7
649.6
2,857.4
24,663.2
2,548.8
36.4
29.0
228.2
4,266.8
1,141.9
3,125.0
19,933.6
16,178.4
694.3
3,060.9
27,042.8
2,575.6
36.6
28.7
231.5
4,595.3
1,229.2
3,366.1
22,515.4
18,498.8
741.8
3,274.8
29,983.1
2,606.5
36.8
28.3
234.9
4,930.9
1,314.4
3,616.5
25,570.2
21,278.6
791.1
3,500.4
33,407.7
2,638.0
37.0
27.8
238.5
5,281.4
1,402.4
3,879.0
29,240.8
24,662.5
843.6
3,734.6
37,463.5
103
Source:
Passport
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 145
2017/18
2013-18 CAGR
2013/18 Total
0.8
0.8
1.3
-1.2
1.5
6.3
6.3
6.3
11.4
13.0
4.2
4.5
9.7
0.9
0.8
1.3
-0.8
1.7
6.8
7.1
6.8
10.0
11.4
4.3
4.8
8.6
4.4
4.1
6.8
-3.8
8.6
39.0
41.1
38.9
61.1
71.6
23.7
26.4
50.7
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Table 146
2013-18 CAGR
2013/18 TOTAL
1.0
1.0
0.3
-1.1
1.4
7.6
7.5
7.7
12.7
13.9
6.8
7.0
10.7
5.2
5.2
1.7
-5.2
7.4
44.4
43.6
44.7
81.5
92.0
38.7
40.3
66.0
Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Euromonitor International
104