In theory, at least, currency hedging helps companies control risks in a volatile global economy. The Mexican brewer Grupo Modelo with a dollar-based income from its export sales to the U.S. would have been concerned that a weaker dollar will depress its revenue. Hence, it would have been eager to hedge. Nevertheless, hedging is a high-risk investment – as Grupo Modelo has just found out.

The programme covers:

The addition to the Bud Light family follows the launch of Bud Light Lime last year.

According to statistics put together by the Beer Institute, an industry body, the U.S. beer industry, comprised of large and small brewers, beer importers, and beer distributors, provides nearly 138,000 well-paying jobs in every congressional district in the country.

Before the enactment of Prohibition in 1920 the distribution of beer was minimally regulated. Most breweries were relatively small and served a local market. Some breweries owned their own retail outlets, typically a neighbourhood tavern. Privately-owned outlets were often given incentives by the breweries to carry their beer exclusively. These incentives ranged from equipment and supplies to interest-free loans. In these early, freewheeling days, intimidation and corruption were relatively common.

This documentary is of a Michael Moore genre depicting the David and Goliath battle brewing over the difficulty of small brewers finding distribution for their products as well as shelf and tap space in retail outlets.

The sales volume of imported beer brands, which are generally more expensive than domestic brands, is slowing as Americans cut discretionary spending. The beer industry’s overall sales in the U.S. were down about 4 percent in the first two months of this year compared with the same period in 2008.

Upon announcement of the anti-flu measures in Mexico City, Grupo Modelo’s stock fell the most in six months. It declined 8.9 percent, while Fomento Economico Mexicano SAB (FEMSA), Latin America’s largest beverage company, also slumped, dropping 4 percent. The decline in Femsa, the maker of Dos Equis beer, was the biggest since 7 April 2009.

Coca-Cola and Pepsi spun off their bottlers in the 1980s and 1990s on the assumption that by selling off the bottling rights, they could keep the companies asset-light and less capital-intensive. The beverage companies just produce the concentrates and syrups. Bottlers do the manufacturing and distribution, usually with exclusive rights within a defined geographic region.

Changes from last year’s list include breweries moving up or down in the rankings based on volume sales. Two craft brewers have claimed spots in the Top 50 Overall list—Big Sky Brewing Co. and Mac & Jack’s Brewery. Consolidation of MillerCoors, last year’s number 2 and 3 brewers, opened up a slot, and the merger of Widmer Brothers and Redhook into the company now named Craft Brewers Alliance, Inc. opened up another slot filled by emerging small and independent craft brewers.