Heineken has just announced that it will be buying the beer operations of Femsa, a large beverage company in Mexico. The beer industry has experienced several acquisitions this past decade, so this move was not exactly a surprise. Many brewing companies have done this to tap into different markets across the world.
Latin America is one of the world’s fastest growing beer markets, which made Femsa very appealing to Heineken. Femsa currently takes up just under half of the Mexican beer market and a large portion of the Brazil market as well. Mexico in particular has been highly profitable. With their popular brand Dos Equis being sold there as well as other areas, such as the United States, there are a lot of potential earnings for Heineken.
This acquisition will certainly help in growing Mexico’s economy as well. As the Latin American beer market grows, it will likely bring more jobs and investors to the area. This bodes well for this country as it looks for new opportunities.
This deal is so important for Heineken because it has becoming increasingly important for globalization in the brewing industry. This will make Heineken a larger, more diverse company and they will hopefully be drinking in the profits in future years.