Grupo Modelo and Cargill sign joint venture
Grupo Modelo, which brews Corona Extra, will have a 51 percent stake in the joint venture firm, to be called Integrow Malt LLC, and Cargill will own the remaining 49 percent, Grupo Modelo said in a filing with the Mexican Stock Exchange.
Integrow Malt will occupy Grupo Modelo’s malt factory in Idaho Falls. Besides supplying the Idaho Falls plant, the joint venture will also become a long term supplier of malt and barley to Grupo Modelo’s breweries and malt factories.
Grupo Modelo said the venture will help the Mexican brewer make its supply chain more efficient.
Grupo Modelo has about 58 percent of the Mexican beer market. In 2009 it sold 37.2 million hl beer and had net sales of MXN 82 billion (EUR 5.0 billion).
Currently, it is seeking USD 2.5 billion in damages from Anheuser-Busch. It is also suing Constellation Brands, accusing its partner of violating its fiduciary duties as the co-owner of Crown Imports LLC, which markets Corona Extra, the top-selling imported beer, in the United States.
Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Founded in 1865, the privately held company employs 138,000 people in 67 countries. In its fiscal year 2009, Cargill had USD 116.6 billion in sales and other revenues. Net earnings were USD 3.33 billion.
