Beer accounts for up to 40% of revenue in Mexican grocery stores: Grupo Modelo

Oaxaca, Oaxaca. Grupo Modelo , the beer company that owns the Corona and Victoria brands, operates nearly 300,000 stores in Mexico, businesses that generate up to 40% of their total revenue from beer sales.

Furthermore, establishments that sell beer increase their revenue by 20% compared to those that don't, noted Grupo Modelo president Daniel Cocenzo.

As part of the celebrations for the brewery's 100th anniversary, he emphasized the economic importance of small business operations within the industry, as nearly 30 million people in Mexico depend directly or indirectly on activities related to beer sales in stores, bars, and restaurants.

While more than 80% of Mexicans consider these places an escape from their routine, at least half have celebrated important life moments there.

During a tour of small businesses in central Oaxaca, Felipe Aragao, vice president of Go To Market for Grupo Modelo , emphasized that the company has grown hand in hand with these establishments, which it supports and promotes with digital tools and financing.

He pointed out that they provide loans to small shop owners , the amount of which varies depending on their needs and size, but he estimated an average of 9,000 pesos for small establishments, with terms of seven to 14 days for the purchase of the brand's products.

"We created a revolving credit system for shopkeepers, adjusting their weekly purchases so that it doesn't become a problem later. So, in a sense, it works as a way to finance the business," he added.

They also facilitate access to other types of financing through a fintech company, owned by a company independent of the brewery group, which provides guarantees so owners can obtain larger amounts of credit.

With Bess, its mobile app, the brewery boosts efficiency in small stores by simplifying orders, optimizing inventory, and supporting decision-making with the help of artificial intelligence.

"We want to grow even more, and we believe this platform will help us attract more small shops," said Felipe Aragao.

Grupo Modelo invests in promoting responsible beer consumption in these small businesses and allocates resources to provide shop owners with refrigeration equipment to ensure products are in optimal condition and always available. It also contributes to improving the establishments' facades.

Oaxaca is a strategic market for Grupo Modelo , where it began investing in the 1980s. It currently operates a network of around 13,000 small stores. It has a plant in Tuxtepec where it produces Corona 00 (zero alcohol), as well as 13 distribution agencies.