Weak US sales affect Modelo and Femsa
It’s official now: The US recession began in March. But it was only during the third quarter of 2001 that beer sales began to slow down. Grupo Modelo, the brewer of Corona Extra, reported a sharp drop in third quarter profits due to weak sales in the US. With over 85 percent of its exports headed to the US, Modelo announced an operating profit of 1.9 billion pesos, a 7.2 percent decline year-on-year. Total sales rose 0.7 percent to 7.9 billion pesos, and domestic sales increased 4.6 percent but export revenue dropped 10.5 percent. Net profit for the third quarter fell 3.4 percent to 855 million pesos.
Femsa, Modelo’s domestic competitor, was also affected by the recession north of the border and 11 September atrocities, but apparently to a lesser extent. Beer sales declined 3..
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