Top Mexico Brewers Agrees to Limit Exclusivity Deals Elinor Comlay and Luc Cohen - Reuters
go to original July 13, 2013

MEXICO CITY - Mexico's biggest brewers, Grupo Modelo and Cuauhtemoc Moctezuma, have agreed to open up the local beer market to end a dispute over the domination the two have long enjoyed in Latin America's second-biggest economy.

Mexico's Federal Competition Commission (Cofeco) said that Modelo, a unit of Anheuser-Busch InBev SA , and Cuauhtemoc, which belongs to Heineken NV , would have to reduce exclusivity deals they have with clients in Mexico over the next five years or face heavy fines.

... The two Mexican brewers agreed to conditions including limiting exclusivity deals in convenience stores and restaurants to a maximum of 25 percent of points of sale, reducing this to 20 percent over the next five years.

Aside from loosening the hold the two big companies have on the market, the decision delivered a boost to microbrewers.

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