Mexican Microbreweries Confront Beer Giants Duncan Tucker - Al Jazeera
go to original August 24, 2014

Mexico is the world's sixth largest producer and consumer of beer (Duncan Tucker/Al Jazeera)

GUADALAJARA, Mexico - Like many sectors of Mexico's economy, the beer industry has long been dominated by a powerful duopoly. But a flourishing craft beer movement led by independent microbreweries is showing signs of finally forcing open this lucrative market.

Since assuming office in December 2012, President Enrique Peña Nieto's administration has passed major reforms to combat monopolies and foster greater competition in key industries such as energy and telecommunications. Mexico's beer industry, which is worth approximately $20bn a year, according to government figures, is also experiencing significant change.

The world's sixth largest producer and consumer of beer, Mexico brews over 8.6 billion litres annually, while the average Mexican drinks 60 litres per year. But two dominant breweries, Grupo Modelo and Cuauhtemoc-Moctezuma, control 98 percent of the market, according to a US Department of Agriculture report from 2013.

Microbreweries account for less than one percent, although their combined market share is growing rapidly by 50 to 60 percent a year.

Read the rest at Al Jazeera

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