Alcoholic Drinks in Mexico

Industry Overview | 23 Jun 2015

EXECUTIVE SUMMARY
Mexicos economic performance improves slightly but enough to benefit alcoholic
drinks industrys growth
Mexicos economic performance during 2014 showed a slight but favourable increase as the
countrys GDP grew 2.1% during the year. This small but perceived positive performance helped
consumers to have more disposable money and thus become less cautious on what categories
they could spend on. This situation has helped alcoholic drinks, which showed an increase in
consumption, especially as consumers started to get more and more confident as months passed
by through 2014. One good external event that helped the economy and overall industry was the
FIFA World Cup which took place in Brazil, especially given its proximity to Mexico, the similar
daytime hours and the emotional link to the World Cup itself but also to the fellow Latin American
country. The World Cup also supported sales of alcoholic drinks, especially through on-trade
channels, as many spectators watch games in these establishments, even those that do not have
such a strong interest in football.
Premium and aspirational products keep boosting sales in many alcoholic drinks
categories
One of the main reasons helping a much stronger performance in the alcoholic drinks industry is
the appearance of premium brands which are strongly followed by young Mexican consumers
who aspire to consume them. During 2014 spirits saw the appearance of higher-priced spirits
that offer a feeling of higher social status to those who drink them, such as single malt Scotch
whisky in new brands and aged tequilas in crystal-clear forms. Additionally beer added premium
international brands to the already existing international portfolio, whilst craft beer brands kept
appearing on the store shelves and on-trade establishments options. Additionally, cider saw
gains, as the category targets mainly women who seek new aspirational options without having
to think about spirits. Mid-income Mexican consumers are the most devoted to aspirational
habits and are making the latest trends amongst alcoholic drinks overall.
Beer companies lead the alcoholic drinks industry in Mexico
One of the categories that has had the most noticeable market movement during 2013 and 2014
was beer, due in part to mergers and acquisitions, such as Anheuser Busch InBevs takeover of
Grupo Modelo SA de CV, and new brand launches, such as Stella Artois. Beer is a very important
product in Mexico, in both value and volume terms, since the category has been present in
Mexico for decades and takes part strongly in Mexican alcoholic drink consumption customs.
Such is the importance of the category that the two leading companies overall in the alcoholic
drinks industry in Mexico are Grupo Modelo SA de CV and Heineken Mxico S de RL de CV, which
dominate the competitive landscape by accounting for a combined 90% of the total volume
sales.
Higher sales of premium products improve performance in the on-trade channel
During 2013 the Mexican Federal Competition Commission declared that Grupo Modelo and
Heineken Mxico should restrict their exclusive contracts to 20% of their clients or else face fines
in order to stop monopolist practices and leave beer in a clearer and more transparent state of
competition. This situation has brought good results to the channel, where more premium craft
beers can be found, but this trend of having higher-priced products is also present in other
categories such as spirits and wine. The result is that the on-trade channel is having an improved
performance thanks to consumers elevating average tickets due to consumption of premium or
higher-priced products such as single malts, gin cocktails, premium beer and rum. The on-trade
channel is where consumers can show off the aspirational products that they consume, which
elevates their status and spirit.

Healthy forecast is ahead after two years of struggle

Mexicos alcoholic drinks industry has seen how volume growth is affected by economic
downturns and shifts. However, it has also demonstrated that when those bad moments are past,
consumers tend to go back again to enjoying many life moments with an alcoholic product. Over
the forecast period, whilst the Mexican economy is foreseen to be healthier, alcoholic drinks is
expected to have a healthy growth of 3% volume CAGR, which will be better than during the
review period, and especially compared to 2012 and 2013 performance. Higher-quality products
will also reflect a better economic situation amongst consumers, who are expected to keep
looking for premium products whenever possible to pamper themselves despite the higher price.
KEY TRENDS AND DEVELOPMENTS

Casa Cuervo makes strong business decisions that change the panorama of tequila,
whiskey and wine
At the end of 2014 one of the leading companies with a long tradition and renown in the
alcoholic drinks industry in Mexico made a strong announcement that represented, directly and
indirectly, many strategies and trends of the industry. Casa Cuervo SA de CV decided to divest its
50% share of the brand Don Julio, despite the brand being responsible for boosting the category
given its launch of crystal-clear tequila, to Diageo to complete Diageos full ownership of the
brand. The newly launched Don Julio product is aged tequila that unlike classical aged tequilas,
which come in a yellowish, amber transparent colour, comes in a crystal-clear colour which is one
of its flagship qualities. Such was the success of the product that tequila started to become
trendy again and attractive to young consumers preferences and trends. Additionally, other
tequila manufacturers wanted a part of the success and launched their own crystal-clear aged
tequilas; such was the case of Cazadores Extra Aejo and Herradura Ultra amongst others.
Casa Cuervo SA de CV, which is the second most important company in spirits by volume
share, announced in November 2014 the sale of its 50% share in the iconic brand in tequila, Don
Julio, to the other leader in the alcoholic drinks industry: Diageo. Diageo in turn sold to Casa
Cuervo its whiskey brand Bushmills and at the same time Diageo ended early its agreement with
Casa Cuervo, whereby Casa Cuervo produced and distributed its Smirnoff vodka in Mexico,
globally owned by Diageo. In this transaction Casa Cuervo paid Diageo US$408 million.
According to Diageo, this transaction benefits immensely the firm as with the acquisition
of the Don Julio brand, it strengthens its position globally by improving its competitive position in
Mexico, but it also enters the premium tequilas segment, which is a growing trend amongst
consumers and is expected to stay that way over the forecast period.
For Cuervo the transaction represents a good strategy and perfect motive to start the
steps towards becoming a multinational company which started in Mexico. Tequila is a category
that has had its ups and downs, especially lately when consumption, especially in Mexico, started
to decrease thanks mostly to the increasing trend of whisky amongst consumers, especially
within those in the middle-income class, young adults and trend followers.
Outlook
With the acquisition of Don Julio, tequila brands took another step in belonging to
multinational companies. This represents a positive opportunity for tequila itself, as exports will
continue to increase as a result of the expertise that multinational companies own.
The step that Cuervo is making towards becoming a multinational company is also
foreseen to benefit alcoholic drinks in Mexico as trends from other countries, such as cocktail
innovations or marketing strategies, are going to become stronger and more evident in Mexico,
especially for the on-trade channel.
During 2015 Mexicos economy is expected to perform better than 2013 and 2014 and
with this slight improvement, consumers are also forecast to keep tending to higher-quality
products whenever possible, and keep following trends towards drinks such as whisky,
champagne and sparkling wine. Furthermore, consumers are expected to keep upgrading within
their own preferred categories for example, whisky followers are trading up slowly but steady to
single malts and despite being this still a niche group, as the Mexican economy expands and

consumers budgets loosen up, this niche group is expected to keep increasing, benefiting the
categorys value.
Additionally it is important to mention that Cuervo also made another movement during
2014, which was to become the distributor of Freixenet wine brands. This strategy is suitable,
considering that some of the best performing categories are sparkling wine and still wine itself.
According to the Consejo Mexicano Vitivincola or Mexican Wine Council, women are a strong
growth driver in the category since many women enter the category through sparkling wine. This
is why with the strong expertise, brand development strategies and distribution skills of Cuervo,
Freixenet brands are also expected to be soon boosting the category and seizing higher share.
Consumers drive volume growth at both poles of the price bands during hard
economic times
2013 was a very difficult year for the Mexican economy and 2014 was no different. 2014
began with new taxes in the packaged foods and non-alcoholic drinks industries amongst other
industries such as pet food and pet care, along with bus tickets, chewing gum and other tax
raises such as VAT in some states of the country with the objective to have this tax standardised
to 16% nationwide.
This situation came along with very difficult years without major GDP growth, 1.3% in 2013
and 2.1% in 2014, making consumers struggle with household budgets. The consequence is that
consumers polarised in their purchasing decisions depending strongly on the consumers habits
and income level, factors that affected performance of alcoholic drinks during 2013-2014.
Categories such as RTDs performed strongly during 2014, helped widely by the growing
availability of products and growing product offering of brands to meet almost every taste
preference. This category is closely followed by young adult consumers who have less spending
power or disposable money for non-basic products. Also, and almost in an obvious way, RTDs
benefited from the convenience that they represent.
Sparkling wine performed in a very healthy way, stronger than in previous years in both
value and volume terms, especially due to the strategy in the on-trade channel where consumers
are now able to purchase champagne by the glass where formerly they were only allowed to
purchase it by the bottle. This situation allowed consumers to be able to drink champagne
without its having to be a celebration moment, such as was previously the most common reason
of consuming champagne. On the other hand, consumers who were more negatively affected in
their spending power went to private label products or lower-priced branded labels in the case of
wines. These products have also been successful given the perception of improved quality.
Beer was another example of this polarisation of brands and consumers who were less
affected by the economic situation and price increases, and indeed they tended to trade up in
their brand consumption. A good example of this is the increased consumption of brands such as
Heineken, Bohemia (which even launched a new version to seize the trend and reach new
consumers), Budweiser and the recently launched Stella Artois in Mexico. These beers have been
benefiting from the trend amongst consumers towards searching for higher quality. The other
side of the coin is brands that are lower priced, but still high in quality, such as Carta Blanca or
Tecate, which make a good option when price-driven decisions were made, especially due to their
larger packaging sizes called caguamas. These packaging sizes represent a better value for
money as the unit price is less, and they are widely consumed, especially in the northern and
western parts of Mexico.
Outlook
Brand polarisation is expected to continue over the forecast period, but at a decreasing
rate as consumers become more and more used to the new taxes and to the higher prices of
many categories in the food and beverage industries, coupled with greater stability and
economic growth in the long term. Although the Mexican government predicts greater economic
stability and growth, economic performance is still unpredictable in the short term.
This situation represents a strong challenge for mid-priced brands, as they tend to be the
first ones to be negatively affected by consumers having to trade down in order to administer
their budgets better. Low-priced brands are expected to keep benefiting as Mexicos economic
environment remains uncertain. However, the same situation for high-priced brands is expected

whenever consumers who are the target of this segment are less negatively affected by Mexicos
low economic growth, and thus maintain the trend of looking for brands that help them pamper
themselves and give them a sense of deserved indulgence, but also have a strong impact
emotionally as being aspirational brands.
As a result of this, owners of standard-priced brands are expected to perform stronger
marketing promotions and value-for-money offerings such as giveaways with purchases and
events for consumers, with the main strategy to create emotional links between consumers and
brands.
Young consumers are again key drivers of various categories growth
During 2014 many brands that appeared in RTDs were line extensions of brands already
popular within spirits. The main reason for this is to reach young adult consumers who do not
have either the budget or the time for preparing their own cocktails at home. Young adult
consumers were the main reason for spiced rum to stop the fall in which rum was trapped for
years. A similar situation is seen in wine-based RTDs where a successful player, Casa Pedro
Domecq Mexico SA de CV, repositioned the Caribe Cooler brand during 2013 with effects still
seen in 2014, when young consumers made the brand grow again.
Premiumisation amongst young adult consumers also prompted companies such as Diageo
and Brown-Forman Tequila Mexico to expand their portfolios of flavours for brands such as J&B
and Jack Daniels or Finlandia Frost respectively. Brands such as Jack Daniels, Finlandia Frost and
Skyy Blue (from Casa Herradura), have passed many years with mainly their original flavours;
however, during 2014 the strongly expanded their offer and added new flavours to their
portfolios so as to seize the excellent moment that RTDs is having.
Young adult consumers have passed through different moments across the country that
made them opt for convenient and easy ways of having their alcoholic beverages. One reason is
the insecure environment in which they lived, especially during the review period years, in the
northern and western parts of Mexico where consumers practically had to hold their gatherings
and parties inside their houses due to the hazard that it represented to go out to on-trade
channels. The other reason is the convenience and low spend per serving size that RTDs
represent compared with having to purchase a complete bottle of spirits or wine plus the mixers
and any other products needed.
Sparkling wine is another category benefiting from young adult consumers. Sparkling wine
is almost a logical progression after RTDs due to the sparkling bubbles and the sweet, yet not so
strong flavour. This category has benefited from young adults consumption in both the on-trade
and off-trade channels, and with time, sparkling wine consumption is another factor that benefits
wine consumption due to the entrance that this product gives to the still wine brands.
Outlook
Over two million young adults in Mexico are expected to reach the legal age allowed for
ingesting alcoholic beverages each year between 2015 and 2019. These young adults are legally
allowed not only to ingest alcoholic drinks but also to work. Due to the hard economic times that
Mexico is experiencing, more and more young adults are expected to enter the working force
earlier, regardless of payments made to universities, given the necessity to begin to earn money
for themselves or for their families now.
Over the forecast period young adults are set to be a key driver of volume growth. Young
adults are the ones who seek to know about many subjects including the products that they
consume. Young adults wish to be seen as connoisseurs according to their economic possibilities
and this trend is foreseen to continue, especially as higher employment rates facilitate higher
purchasing power and the unemployment rate is forecast to decrease from almost 5% in 2014
and 2015 to almost 4% in 2019.
Social network advertising and emotional linking our of are strong factors that have been
used by companies and seem to be having good results with brands investing more in social
networks and internet advertisements more than mass media ads. This is the case of brands
such as Caribe Cooler, New Mix and Skyy Blue to name a few. This type of strategy is also
forecast to remain and grow in the near future, with the players profiting from emotional links
and promoting events for consumers to make a virtual circle.

Key new product launches

New product developments and launches have been a key factor in the performance of the
alcoholic drinks industry in Mexico, especially in a year when the economic situation made
consumers and companies struggle with both volume and value growth.
During 2013 and even more during 2014, alcoholic drinks manufacturers decided to go
along with the premiumisation trend amongst consumers and presented many different products
that helped even more to boost the trend whenever possible. An example of these products is
Herradura Ultra, an aged tequila which was launched to compete with this new type of tequila,
considered higher quality and special due to its crystal-clear colour when formerly, aged tequila
was usually yellowish transparent. Crystal-clear tequilas have made consumers go back again to
seek out this original Mexican spirit which had been losing share to whiskies. This situation
started with Don Julio 70, the special edition that Casa Cuervo launched to commemorate the
70th anniversary of its Don Julio brand. Its success was such that other brands started to follow,
Cazadores Extra Aejo Platino, Herradura Ultra and others. As players seized on the new trend in
tequila, flavoured tequilas also appeared in the market such as Tequila 1800 Verdano from Casa
Cuervo, which has cucumber flavour and is intended for cocktails, and which has proved to sell
well in the on-trade channel. Last but not least, Sauza Hornitos Black Barrel was launched, the
only tequila aged in a traditional whiskey way, which delivers unique tequila with complex whisky
notes. It is important to mention that these new products in tequila are aimed to boost the
category again by giving new tastes, new flavours, new consumption moments and new ways of
consumption but also by increasing the status and perception of tequila.
A similar situation has happened within beer, where Stella Artois has strongly entered the
Mexican market with high investment in marketing and publicity, encouraging beer consumers to
keep trading up as their will dictates and purchasing power allows. Stella Artois is owned by
Grupo Modelo SA de CV, which also launched its amber version of the already strong Modelo
brand whilst Heineken Mxico launched also a new version of Indio beer, a Pilsner beer with hints
of coriander.
In the case of RTDs for younger adults, perhaps this was the category with more new
product developments throughout the review period. RTDs is a category strongly followed by
young adult consumers who link to the category for its convenience and the affordable spend per
purchase, which allows them to have alcoholic drinks for their private gatherings or for having
pre-drinks before going to any on-trade establishment, thus not having to spend too much on
their bills. RTDs are widely found and purchased in convenience stores, which reinforces the
benefit of convenience. Young consumers do not have to buy a whole bottle of spirits plus the
mixers, glasses and ice that it might need to be ingested.
Outlook
During good or bad economic moments it is important for players to be always present
with innovation, to develop new consumption moments and to refresh brands. During 2013 and
2014 product launches were mostly aimed to elevate average tickets and quality perception and
change drinking customs amongst consumers, and these launches have performed strongly,
especially during 2014 when consumers felt slightly better economically speaking than they did
during 2013. During 2013 consumers had to administer their budgets better, so when the
Mexican economy improved slightly and no new taxes were imposed in on consumer goods,
consumers opted to try new things and keep the trend of purchasing products perceived as more
premium.
Over the forecast period it is expected that companies will keep investing in product
developments that fulfil the consumers need of trying new things, understanding the category
better, pampering themselves with higher-quality products that are aspirational and have strong
emotional impacts and so forth.
2015 is foreseen as a year of continuity in slow but apparent stable growth for the country
and from 2016 on, that growth is foreseen to stay higher than 2.1% (expected GDP growth of
Mexico during 2015 according to the last government comments at the time of writing this
edition).
As the economy keeps improving and consumers, especially women, enter more into the
working economy, they are expected to keep driving sales of higher-quality products, but also

products that are proudly Mexican or recall Mexican customs or traditions such as tequila and or
products with chilli flavour. On the other hand products that aim also at lower-income consumers
are also expected to keep appearing in the environment, such as has happened with RTDs, which
are more targeted to young adult consumers who are more attracted by convenience, price,
flavour and their already known brands.
Women are a key driver in consumption and sales; thus, they are not forgotten and, on the
contrary, they are expected to be a more active target for alcoholic drinks manufacturers.
Examples of this have been the introduction of XX Radler, the portfolio widening of Strongbow
Cider and new flavours of Baileys liqueurs that come and go in special editions through special
seasons of the year with some of them being so successful that they stay longer than originally
planned.
According to Euromonitor Internationals data, the unemployment rate will be decreasing
over the forecast period from 4.8% in 2015 to 4.2% in 2019, which will help the healthy
performance in all alcoholic drinks categories and new product launches.
Summary 1 Key New Product Developments 2014
Brand
NBO
Product
USP
100 aos
RTD
Margarita
Tamarind

Tequila Sauza
SA de CV

Ancho
Reyes

Ancho Reyes SA Other

de CV
Liqueurs

Spirit-based
RTDs

Ancho Reyes Ancho Reyes SA Other

Liqueur
de CV
Liqueurs

Unique tequila-based RTD with

tamarind flavour which is one
of the most popular margarita
flavours.
Chilli-flavoured liqueur. Hints of
spices, tamarind, plum, cacao,
apple and almonds, then subtle
notes of fine herbs.
Unique liqueur made of sundried chillis (chile ancho) that
mixes very well with Mexican
food.
Unique cream-based liqueur
with Dulce de Leche flavour
which is very popular amongst
Mexicans.

Baileys
Dulce de
Leche

Diageo Mxico
SA de CV

Casa
Secrets

Comercializador
a Friends
Mxico SA de
Sparkling
CV
Wine

Cazadores
Extra Aejo
Platino

Bacardi y Ca
SA de CV

Tequila (and
Mezcal)

Unique sparkling wine in a

metal tin can.
Cazadores could not be left
behind in the new trend of
crystal-clear aejos tequilas.
Cazadores presents its option
in this new category for its
existing fans and consumers
who want to know more about
this type of tequila. Cinnamon
and vanilla notes with citrus
and nut.

Copa de Oro
no alcohol
Dos Equis
Radler

Bodegas Copa
de Oro SA de
CV
Heineken
Mxico S de RL

Cider/Perry
Alcoholic
Drinks

Alcohol-free cider under the

brand Copa de Oro.
Sweet and refreshing beverage
with beer and the name of Dos

Cream-based
Liqueurs

Brand

NBO

Product

de CV

El Jimador
XX
Aniversario

Casa Herradura Tequila (and

SA de CV
Mezcal)

Finlandia
Frost

Brown-Forman
Tequila Mexico
S de RL de CV

Spirit-based
RTDs

Flor de Caa

Ca Licorera de
Nicaragua SA

Dark Rum

USP
Equis beer. 50% lemonade,
50% beer.
Same as the already popular
brand El Jimador in a 950ml
bottle with a more modern,
stylised and fresh bottle image
for its 20th anniversary.
Finlandia Frost RTD with a new,
more convenient packaging, in
a can. This new packaging is
better to manage in
convenience stores and
competes better with other
canned RTDs
The already very popular brand
changed its image in
November 2014, presented in a
slender bottle, more modern
looking for a younger audience
without losing existing
consumers.
Super premium tequila with a
strong softness and an easy
and nice bittersweet final.
Competes amongst crystalclear aejos tequilas.
Already popular tequila brand
Herradura in a special bottle
edition due to its XX (20th)
anniversary.

Herradura
Ultra

Casa Herradura Tequila (and

SA de CV
Mezcal)

Herradura
XX
Anniversary

Casa Herradura Tequila (and

SA de CV
Mezcal)

Jos Cuervo
Tradicional
Limited Ed.
World Cup
2014

Casa Cuervo SA Tequila (and

de CV
mezcal)

Kraken
Ghost

Casa Cuervo SA
de CV
White Rum

Lime-A-Rita

Grupo Modelo
SA de CV

Flavoured/Mix
ed Lager

Mezcamaica

Las Mezcas SA
de CV

RTDs

Minerva
Special
Edition 10th
Anniversary
Modelo
Ambar

Cervecera
Minerva SA de
CV
Grupo Modelo
SA de CV

The popular brand Minerva

with a special bottle edition
RTDs
due to its 10th anniversary.
Domestic Mid- New Modelo lager beer in
Priced Lager
amber colour, characteristics

Limited edition. Bottles

decorated like the Mexican
national soccer team uniform.
Under the umbrella of Kraken,
the very popular spiced rum
brand launches a white rum,
Ghost.
Unique flavoured/mixed lagermargarita under the umbrella
of Bud Light.
RTD low in calories, made with
hibiscus and sweetened with
inulin (functional sweetener).

Brand

NBO

Product

USP

Spirit-based
RTDs

and flavour for consumption all

year long.
RTD beverage made with
Captain Morgan Spiced Rum.

RTD Captain
Morgan

Diageo Mxico
SA de CV

RTD Kraken
Spiced Rum
with Cola

Casa Cuervo SA Spirit-based

de CV
RTDs

Stella Artois

Grupo Modelo
SA de CV

Imported
Premium
Lager

RTD Kraken Black Spiced Rum

with cola.
Super premium imported beer
that has been introduced with
a very strong marketing
campaign and is targeted to
consumers who like to try
premium products and be
connoisseurs.

Strongbow
Gold Honey
and Red
Berries

Heineken
Mxico S de RL
de CV

Tequila 1800
Verdano

Casa Cuervo SA Tequila (and

de CV
Mezcal)

Cider for consumption all year

around. Less sweet new
flavours with less alcohol and
less sparkling than usual
ciders: honey (adds sweetness)
and red berries (leaves tastes
of lemon and apple).
Cucumber-flavoured Tequila
1800 to mix in cocktails and
get a refreshing taste of
tequila.

Bodegas La
Negrita SA de
CV
Brandy
Importaciones y
Distribuciones
Internacionales Still Red Wine

Super premium brandy,

elegant and modern. Contrasts
of vanilla and dried fruits with
toasted wood and citrus.
Lambrusco wine with velvety
texture, warm and refreshing
scent.

Torres 15
Vibrante
Lambrusco

Cider/Perry

Valle Redondo
Vino 4 Soles SA de CV
Still Red Wine
Source: Euromonitor International

Mexican wine that widens Valle

Redondos offer at a very
affordable price.

MARKET BACKGROUND
Legislation

Legal purchasing age and legal drinking age

The legal age for purchase and consumption of alcoholic beverages in Mexico is 18 years
old. However, despite the fact that this age requirement is becoming more strictly enforced in
nightclubs, restaurants and bars to some extent, off-trade channels still rarely require buyers to
show proof of age when buying alcoholic drinks, especially hypermarkets and supermarkets.
According to the 2011 Encuesta Nacional de Adicciones (National Addictions Survey)
carried out by Mexicos national public health institute and still the most recent one, 55% of
Mexicans start drinking before the age of 18. In fact, 15% of those surveyed between the ages of
12 and 17 were identified as heavy consumers (where heavy drinking is defined as consuming
five or more alcoholic drinks on a single occasion in the month before the survey was

conducted). The median age at which Mexicans who consume alcohol begin drinking is 16 for
men and 19 for women.
No changes have been made regarding the legal age to drink alcoholic beverages. The
proposal of elevating the legal age from 18 to 21 did not pass all the chambers of the Mexican
legislature because of the rejection by the secretary of the health commission, who wanted to
hear the opinion of the social and business sectors. From then, no new information regarding the
intention to elevate the legal drinking minimum age has been released.
Drink driving
In 2006, the Mexican legislature changed the law with respect to driving under the
influence of alcohol to make drink-driving an administrative offence rather than a misdemeanour.
The change was made to reduce the ability of police officers to take advantage of drivers as a
means to receive bribes. In order to offset this reduction in the severity of the legal charge
associated with drink-driving, the legislature is encouraging local governments to take steps to
reduce the number of car accidents caused by drunk drivers, such as Mexico Citys quite
successful Conducir sin alcohol (driving without alcohol) drink-driving checkpoints programme.
The presence of the checkpoints, known popularly as the Alcoholmetros (alcohol meters), has
been correlated with a reduction in alcohol-related driving fatalities of about 30% since its
creation in 2003, according to the state government. Under this programme, police set up
checkpoints on roads where drink-driving is more common (for example, in streets near areas
with many bars and nightclubs). Police officers at the checkpoints visually assess drivers and if
there is suspicion of one having ingested alcohol, the driver is asked to take a breathalyser test.
A breathalyser reading of 0.4 or higher (equivalent to 0.08 blood alcohol content) will result in
temporary imprisonment of between 24 and 72 hours, with no chance of bail. Penalties can be
more severe depending on the level of alcohol in the blood. Additionally, in January 2015
President Enrique Pea urged all governors to install this programme of checkpoints as part of a
national programme of Prevention and Attention to Addictions.
No changes have been made over the past months and it has become usual that during
festive seasons (such as Christmas or Easter) the number of checkpoints increases, and they
might appear not just during the night and weekends but all week long and during daytime too.
Advertising
Mexico has a number of legal guidelines that have to be included in any type of
advertisement of alcoholic drinks. Companies that fail to comply with the relevant legislation can
incur heavy penalties and may even be permanently banned from advertising their products in
the country. The mandatory strapline for all alcoholic drinks advertisements is Evite el exceso
(Avoid excess). Advertisements may also feature the phrases Beba con moderacin (Drink in
moderation) or Nada con exceso, todo con medida (Nothing in excess, everything in
moderation). Additionally during 2014, as an initiative from Grupo Cerveceros de Mxico
(Mexican Breweries Group), a new ad campaign went into the main social networks, overall
digital media, radio, walls, on-trade establishments and so forth. It has the objective to dissuade
and prevent alcoholic drinks consumption amongst young (under 18) people, which is one of the
biggest concerns amongst the WHO and Mexican health institutions. This campaign urges
parents to talk to their sons and daughters regarding drinking alcoholic drinks.
Advertisements cannot graphically depict consumers drinking alcohol. They can depict the
product or show people serving it into a glass or cup, but never people tasting or sipping drinks.
Furthermore, companies are not allowed to link alcohol with cigarettes, cars or sexual 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 ontrade 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 from 07.00hrs to
23.00hrs but in some states such as the State of Mexico, they are not allowed to sell alcoholic
drinks between 22.00hrs and 07.00hrs.
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 ontrade 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 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 such as 16 September.
On-trade establishments
After the strong H1N1 (swine flu) outbreak of 2009 and the resulting public concern and
government containment efforts, which resulted in the closing 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. The effects of the outbreak, in combination
with the severe economic recession, resulted in a 10% constant value decline for the consumer
foodservice industry in Mexico in 2009. Furthermore, bars and pubs posted a 3% decline the
same year.
As an economic recovery took place over 2010-2012, the on-trade channel experienced a
resurgence. 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 ontrade establishments. An exception to this is the state of Nuevo Len, where the largest city,
Monterrey, has seen some on-trade outlets emerge as a new sense of peace is entering the city
again (in terms of drug cartel wars), encouraging young adults to go out again and attend new

recreational spaces where alcoholic drinks are sold. This situation has benefited the industry, but
not so much after the low economic growth during 2013. Finally 2014 saw again a good recovery,
especially due to the appearance and increased consumption of higher-priced products such as
tequila, whisky or rum, but also by the strong promotions in beer driven by the FIFA World Cup
Brazil 2014.
Table 1 Number of On-trade Establishments by Type 2009-2014
2009
2010
2011
2012
2013

2014

771,7
67
22,89
7

779,9
81
24,34
9

760,6
09
25,69
1

757,9
78
27,42
6

759,1
17
29,13
1

756,6
47
30,87
5

748,8
70

755,6
32

734,9
18

730,5
52

729,9
86

725,7
72

2,884

2,922

2,959

2,989

3,026

3,062

29,11
4
216,2
50

29,57
3
219,1
29

30,08
7
222,5
19

30,58
1
225,9
29

31,18
5
229,2
95

31,79
4
232,9
62

34,71
1
488,8
08

36,20
9
492,1
48

37,54
4
467,5
00

39,48
2
458,9
97

41,32
7
454,2
84

43,25
7
445,5
72

Pizza Consumer Foodservice

6,420
Source: Euromonitor International

6,489

6,679

6,776

6,882

6,980

Consumer Foodservice
Chained Consumer
Foodservice
Independent Consumer
Foodservice
100% Home
Delivery/Takeaway
Cafs/Bars
Full-Service Restaurants
Fast Food
Street Stalls/Kiosks

TAXATION AND DUTY LEVIES

As alcohol consumption is considered quite stable and resistant to price changes, but also
socially undesirable, and as the Mexican government faced the prospect of lower revenue due to
the contraction of the economy from 2009 onwards, VAT on alcohol was increased by one
percentage point and a lump sum tax on sales was added to the duties derived from selling
alcohol in 2010. Since the change, alcohol sales have been subject to 16% VAT. In addition, these
products are also subject to two additional duties an excise tax known as Impuesto Especial a
la Produccin y Servicios or IEPS (Special Tax on Production and Services) and a lump sum tax of
Mx$3 per litre of alcohol, regardless of alcohol content. The excise tax is applied according to the
alcohol content of the beverage, with high alcohol content translating into a high excise tax.
According to Chapter 1, Article 2 of the law defining IEPS, alcoholic drinks are taxed as follows:
Alcoholic beverages with no more than 14% ABV per litre: 26.5%
Alcoholic beverages with 14-20% ABV per litre: 30%
Alcoholic beverages with more than 20% ABV per litre: 53%
Mexicans and foreign tourists are allowed to carry up to two litres of alcoholic drinks when
entering the country without paying duty. If individuals exceed the limit, then global general
import taxes apply, carrying rates anywhere from 90% and 140%, depending on the alcohol
content of the drink and retail price.
These laws on taxation have not changed between 2013 and 2014.
Table 2 Taxation and Duty Levies on Alcoholic Drinks 2014
Beer/Wine/Cider/Perry
RTDs
Excise tax (% per bottle)

26.5

30

Spirits
53

Import tax
Sales tax (%)

Beer/Wine/Cider/Perry

RTDs

Spirits

n/a
16

n/a
16

n/a
16

1.75

1.75

Environmental tax (%)

1.75
Source: Euromonitor International

Table 3 Typical Wholesaler and Retailer Off-trade Mark-ups by Selected Categories

2014
Beer
C/p
RTDs
Wine
Wh
BC
Wholesaler
Retailer

Wholesaler

25
15

15
20

15
25

25
25

25
20

WS

Rum

OS

15

15

20

20

20

25
20

Retailer
15
15
20
15
20
Source: Euromonitor International
Note: C/p=Cider/perry; Wh=Whisk(e)y; BC=Brandy and Cognac; RTDs = RTD + High-strength
premixes; WS=White spirits; T=Tequila (and mezcal); L=Liqueurs; OS=Other spirits
Table 4 Selling Margin of a Typical Beer Brand in Retail Channel Which Does Not Use
Wholesalers 2014
% retail value rsp
VAT
Retailer

13.8
16.1

Excise
Manufacturer

14.7
55.4

TOTAL
Source: Euromonitor International

100.0

Table 5 Selling Margin of a Typical Wine Brand in Retail Channel Which Does Not Use
Wholesalers 2014
% retail value rsp
VAT
Retailer

13.8
17.2

Excise
Manufacturer

14.4
54.5

TOTAL
Source: Euromonitor International

100.0

Table 6 Selling Margin of a Typical Spirits Brand in Retail Channel Which Does Not Use
Wholesalers 2014
% retail value rsp
VAT
Retailer

13.8
17.2

% retail value rsp

Excise
Manufacturer
TOTAL
Source: Euromonitor International

23.9
45.1
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 Cmera de la
Industria de Vinos y Licores (Industry Commission for Wines and Liquors), or 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 since then. According to the Comisin Federal para la Proteccin de Riesgos Sanitarios
(Federal Commission for Protection from Sanitary Hazards), or COFEPRIS, the supply of
contraband alcoholic beverages increased by 1,000% between 2010 and 2014, reaching 545,493
illegal alcoholic drinks which were destroyed by mid-2014. 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. The Procuradura Federal del Consumidor (Federal Bureau of Consumer Protection) or
PROFECO points out that around 40% of commercialised alcoholic beverages in Mexico are
illegal. Thus during special seasons they broadcast programmes for consumers to be educated
on how to be less prone to drink those beverages.
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. PROFECO, 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 also 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 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 7 Retail Consumer Expenditure on Alcoholic Drinks 2009-2014
MXN million 2009
2010
2011
2012
2013
2014
161,639. 169,840. 184,183. 202,399. 210,958. 218,327.
Total
4
2
5
8
8
8
Source: Euromonitor International from trade associations, trade press, company research, trade
interviews, trade sources
Note: 2014 data is forecast
MARKET DATA
Table 8 Sales of Alcoholic Drinks by Category: Total Volume 2009-2014
2009
2010
2011
2012
2013
2014
Beer (million litres)

6,545.5 6,397.6 6,788.5 6,931.9 6,873.4 7,099.3

Cider/Perry ('000
litres)
RTDs/High-Strength
Premixes ('000 litres)

12,129.
4
130,05
0.9

12,286.
6
135,73
2.2

12,374.
2
144,16
0.4

12,480.
9
152,36
1.6

12,723.
1
155,18
9.2

12,968.
7
160,59
7.9

Spirits ('000 litres)

Wine (million litres)

214,76
7.7
59.3

223,35
3.6
63.2

230,64
9.1
67.4

237,37
0.1
72.4

245,50
3.6
77.8

253,62
0.5
84.5

Alcoholic Drinks
(million litres)
6,961.8 6,832.2 7,243.1 7,406.5 7,364.7 7,611.1
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 9 Sales of Alcoholic Drinks by Category: Total Value 2009-2014
MXN million
2009
2010
2011
2012
2013
2014

Beer
Cider/Perry
RTDs/High-Strength
Premixes

232,38
0.6
599.0

241,37
0.1
634.8

268,93
2.9
660.4

290,81
5.7
691.7

301,95
7.5
724.2

326,91
5.1
759.1

Spirits

6,481.0 6,838.6 7,309.6 7,984.7 8,463.7 9,055.5

70,417. 77,272. 84,235. 91,921. 101,78 112,17
4
1
5
0
3.9
8.8

Wine

14,222. 16,048. 17,860. 20,195. 22,629. 25,658.

3
5
8
0
4
5

MXN million

2009

2010

2011

2012

2013

2014

324,10 342,16 378,99 411,60 435,55 474,56

Alcoholic Drinks
0.3
4.0
9.1
8.0
8.6
7.0
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 10 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2009-2014
% total volume growth
2013/14 2009-14 CAGR
2009/14 Total
Beer
Cider/Perry

3.3
1.9

1.6
1.3

8.5
6.9

RTDs/High-Strength Premixes
Spirits

3.5
3.3

4.3
3.4

23.5
18.1

Wine
8.6
7.3
42.5
Alcoholic Drinks
3.3
1.8
9.3
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 11 Sales of Alcoholic Drinks by Category: % Total Value Growth 2009-2014
% local currency, current value
growth
2013/14 2009-14 CAGR 2009/14 Total
Beer

8.3

7.1

40.7

Cider/Perry
RTDs/High-Strength Premixes

4.8
7.0

4.9
6.9

26.7
39.7

Spirits
Wine

10.2
13.4

9.8
12.5

59.3
80.4

Alcoholic Drinks
9.0
7.9
46.4
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 12 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2014
Off-trade
On-trade TOTAL
Beer (million litres)
Cider/Perry ('000 litres)

5,523.4
11,918.4

1,576.0
1,050.3

7,099.3
12,968.7

RTDs/High-Strength Premixes ('000 litres)

Spirits ('000 litres)

149,688.0
188,612.4

10,909.9
65,008.1

160,597.9
253,620.5

Wine (million litres)

55.4
29.1
84.5
Alcoholic Drinks (million litres)
5,929.0
1,682.1
7,611.1
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 13 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2014
MXN million
Off-trade
On-trade
TOTAL
Beer

170,257.0

156,658.1

326,915.1

Cider/Perry
RTDs/High-Strength Premixes

557.7
6,831.3

201.4
2,224.2

759.1
9,055.5

MXN million

Off-trade

On-trade

TOTAL

Spirits
Wine

46,740.9
9,458.3

65,437.9
16,200.2

112,178.8
25,658.5

Alcoholic Drinks
233,845.2
240,721.7
474,567.0
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 14 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume
2014
% volume analysis
Off-trade
On-trade
Total
Beer
Cider/Perry

77.8
91.9

22.2
8.1

100.0
100.0

RTDs/High-Strength Premixes
Spirits

93.2
74.4

6.8
25.6

100.0
100.0

Wine
65.5
34.5
100.0
Alcoholic Drinks
77.9
22.1
100.0
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 15 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2014
% value analysis
Off-trade
On-trade
Total
Beer

52.1

47.9

100.0

Cider/Perry
RTDs/High-Strength Premixes

73.5
75.4

26.5
24.6

100.0
100.0

Spirits
Wine

41.7
36.9

58.3
63.1

100.0
100.0

Alcoholic Drinks
49.3
50.7
100.0
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 16 GBO Company Shares of Alcoholic Drinks: % Total Volume 2010-2014
% total volume
2010
2011
2012
2013
2014
Anheuser-Busch InBev NV
Heineken NV

1.1
38.3

1.1
38.5

1.2
40.0

48.2
40.4

47.6
41.3

Oetker-Gruppe
Pernod Ricard Groupe

3.6
1.1

3.5
1.1

3.4
1.1

3.3
1.1

3.1
1.1

Brown-Forman Corp
Bacardi & Co Ltd

0.8
0.4

0.9
0.4

0.9
0.4

0.9
0.4

0.9
0.4

Grupo Cuervo SA de CV
SABMiller Plc

0.3
0.3

0.3
0.3

0.3
0.3

0.4
0.3

0.4
0.3

Productos de Uva SA de CV
Diageo Plc

0.4
0.3

0.4
0.3

0.4
0.3

0.3
0.3

0.3
0.3

Others
Total

53.5
100.0

53.4
100.0

51.8
100.0

4.4
100.0

4.3
100.0

Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 17 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2009-2014
200 201 201 201 201 201
% off-trade
9
0
1
2
3
4

Store-Based Retailing
- Grocery Retailers

100. 100. 100. 100. 100.

0
0
0
0
0
99.9
97.0 97.0 96.9 96.9 96.9 96.8

-- Discounters
-- Food/drink/tobacco specialists

8.1
8.2
8.1
8.1
8.1
8.1
25.5 26.9 25.9 25.8 25.7 25.8

-- Hypermarkets
-- Small Grocery Retailers

9.4
9.8
10.0 10.0 10.1 10.1
42.6 42.0 42.1 42.1 42.1 42.1

--- Convenience Stores

--- Forecourt Retailers

18.0 18.1 18.3 18.3 18.3 18.3

1.2
1.2
1.0
1.0
1.0
1.0

--- Independent Small Grocers

-- Supermarkets

23.3 22.7 22.8 22.8 22.8 22.8

5.1
5.8
6.7
6.9
6.9
6.9

-- Other Grocery Retailers

- Non-Grocery Retailers

6.3
3.0

4.3
3.1

4.2
3.1

4.1
3.1

4.0
3.1

3.9
3.1

-- Parapharmacies/Drugstores
-- Mixed Retailers

3.0

3.1

3.1

3.1

3.1

3.1

--- Department Stores

--- Mass Merchandisers

1.5
-

1.6
-

1.6
-

1.6
-

1.6
-

1.6
-

--- Variety Stores

--- Warehouse Clubs

1.5

1.5

1.5

1.5

1.5

1.5

-- Other Non-Grocery Alcoholic Drinks

Retailers
Non-Store Retailing

0.0

0.0

0.1

- Direct Selling
- Homeshopping

- Internet Retailing
- Vending

0.0
-

0.0
-

0.1
-

100. 100. 100. 100. 100. 100.

Total
0
0
0
0
0
0
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 18 Distribution of Alcoholic Drinks by Format and Category: % Off-trade Volume
2014
RTDs/HighBee Cider/Per Strength
Spiri Win
% off-trade
r
ry
Premixes
ts
e
Store-Based Retailing
- Grocery Retailers

99.4 100.0
98.0 100.0

100.0
100.0

99.7 98.7
97.3 96.1

-- Discounters

8.1

7.0

9.0

27.4

5.3

RTDs/HighCider/Per Strength
ry
Premixes

% off-trade

Bee
r

Spiri Win
ts
e

-- Food/drink/tobacco
specialists
-- Hypermarkets

22.9 33.4
10.6 16.0

9.6
18.4

47.0 28.9
19.1 24.5

-- Small Grocery Retailers

--- Convenience Stores

46.3 8.9
18.9 2.5

50.3
35.7

8.4
4.8

1.8
1.8

--- Forecourt Retailers

--- Independent Small Grocers

2.0 0.0
25.4 6.3

0.0
14.6

0.0
3.6

0.0
0.0

-- Supermarkets
-- Other Grocery Retailers

6.7
3.3

14.3
0.0

14.7
0.0

11.1 35.7
2.5
0.0

- Non-Grocery Retailers
-- Parapharmacies/Drugstores

1.5
0.0

0.1
0.0

0.0
0.0

2.4
0.0

2.6
0.0

-- Mixed Retailers
--- Department Stores

1.5
0.0

0.1
0.1

0.0
0.0

2.4
0.9

2.6
1.1

--- Mass Merchandisers

--- Variety Stores

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

0.0
0.0

--- Warehouse Clubs

-- Other Non-Grocery Alcoholic
Drinks Retailers

1.5

0.0

0.0

1.5

1.5

0.0

0.0

0.0

0.0

0.0

Non-Store Retailing
- Direct Selling

0.6
0.0

0.0
0.0

0.0
0.0

0.3
0.0

1.3
0.0

- Homeshopping
- Internet Retailing

0.0
0.6

0.0
0.0

0.0
0.0

0.0
0.3

0.0
1.3

- Vending

0.0 0.0
0.0
0.0
0.0
100.
100. 100.
Total
0
100.0
100.0
0
0
Source: Euromonitor International from official statistics, trade associations, trade press,
company research, store checks, trade interviews, trade sources
Table 19 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2014-2019
Million litres
2014
2015
2016
2017
2018
2019
7,099.
3

7,203.
5

7,339.
5

7,516.
5

7,722.
1

7,962.
8

Cider/Perry
RTDs/High-Strength
Premixes

13.0

13.2

13.4

13.7

13.9

14.1

160.6

168.0

177.3

188.5

202.5

218.6

Spirits
Wine

253.6
84.5

263.8
92.5

275.1
101.9

287.2
113.0

300.5
125.6

314.4
140.4

Beer

7,611. 7,741. 7,907. 8,118. 8,364. 8,650.

Alcoholic Drinks
1
0
2
8
6
4
Source: Euromonitor International from trade associations, trade press, company research, trade
interviews, trade sources
Table 20 Forecast Sales of Alcoholic Drinks by Category: Total Value 2014-2019

MXN million

2014

2015

2016

2017

2018

2019

Beer
Cider/Perry

326,91
5.1
759.1

334,07
6.2
770.6

342,07
3.3
782.0

351,89
5.5
793.3

363,03
2.4
805.3

375,82
9.1
818.1

11,160.
1
146,48
4.2

11,979.
3
155,89
1.6

RTDs/High-Strength
Premixes
Spirits

10,451.
9,055.5 9,406.1 9,878.9 0
112,17 120,25 128,63 137,53
8.8
2.6
6.6
5.6

25,658.
5
474,56
Alcoholic Drinks
7.0
Source: Euromonitor International
interviews, trade sources
Wine

28,405. 31,680. 35,685. 40,313.

4
3
8
1
492,91 513,05 536,36 561,79
1.0
1.2
1.1
5.0
from trade associations, trade press,

45,810.
3
590,32
8.4
company research, trade

Table 21 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 20142019
% total volume growth
2014/15 2014-19 CAGR
2014/19 Total
Beer

3.1

2.3

12.2

Cider/Perry
RTDs/High-Strength Premixes

1.5
8.0

1.7
6.4

8.7
36.1

Spirits
Wine

4.6
11.8

4.4
10.7

24.0
66.1

Alcoholic Drinks
3.4
2.6
13.7
Source: Euromonitor International from trade associations, trade press, company research, trade
interviews, trade sources
Table 22 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 20142019
% local currency, constant value
2014/201 2014-19
2014/19
growth
5
CAGR
TOTAL
Beer
Cider/Perry

3.5
1.6

2.8
1.5

15.0
7.8

RTDs/High-Strength Premixes
Spirits

7.3
6.4

5.8
6.8

32.3
39.0

Wine
13.6
12.3
78.5
Alcoholic Drinks
5.1
4.5
24.4
Source: 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 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.
Published data comparisons
National consumer expenditure
Consejo Regulador del Tequila (Tequila Regulator Council), INEGI and SIAVI

The Tequila Regulator Council is in charge of certifying tequila in Mexico for national
consumption and exports. It holds trustworthy statistics on production, inventories and exports.
Euromonitor International data differ, however, as the organisation does not track consumption.
INEGI is the official source of manufacturing, value and volume of production of many of
the products included in the alcoholic drinks industry.
SIAVI is part of Mexicos Department of the Economy, which provides information via the
internet regarding imports and exports of some specific products, including some of the ones
included in the alcoholic drinks industry.
SOURCES
Sources used during the research included the following:
Summary 2 Research Sources
Official Sources Agricultural Trade Office
Agriculture & Agri-Food Canada
American Chamber of Commerce of Mexico
Commision Federal de Competencia
Federal District Government
INEGI
Instituto Nacional de Salud
Organization for Economic Cooperation & Development
Procuradura Federal del Consumidor (PROFECO)
Secretaria de Economia
Secretara de Hacienda & Credito Publico
Servicio de Administracin Tributaria
Spanish Embassy
Subsecretaria de Negociaciones Comerciales Internacionales
United States Trade Center
US & Foreign Comercial Service
US Agricultural Trade Office
US Chamber of Commerce
Trade
Associations

Academia Mexicana Del Vino AC

Asociacin de Importadores y Representantes de Alimentos &
Bebidas
Asociacin de Sidreros
Asociacin Nacional de Fabricantes de Cerveza (ANFACER)
Asociacin Nacional de Importadores & Exportadores de la
Republica Mexicana

Official Sources Agricultural Trade Office

Asociacion Nacional de Tiendas de Autoservicio y
Departamentales (ANTAD)
Asociacin Nacional de Vitivinicultores AC
Bureau National Interprofessionel du Cognac (BNIC)
Cmara Nacional de Comercio de la Ciudad de Mxico
(CANACO)
Cmara Nacional de la Industria de la Transformacin
(CANACINTRA)
Cmara Nacional de la Industria Tequilera
Cmara Nacional de la Industria y Alimentos Condimentados
(CANIRAC)
CIVYL
Comercam
Comit Interprofessionnel du Vin de Champagne (CIVC)
Consejo Mexicano Vitivincola
Consejo Regulador del Tequila
Consejo Regulador del Tequila (CRT)
IVDP Portugal
National Association of Wine Growers
Productores de Zacatln
Trade Press

Scotch Whisky Association

Advertising Age Mexico
Alto Nivel
America Economa
Beverage World
Catadores
CNN Expansion
Cosmos Online
Creativa Magazine
Diario Monitor
Drinks International
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
Merca 2.0

Official Sources Agricultural Trade Office

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