Based on your analysis of the global beer industry and Grupo Modelo’s situation, what problems and issues does the company’s top management need to address? Being Mexico’s largest beer producer and distributor, Grupo Modelo aspired to increase production and capacity due to the growth of their international demand. Consequently, the company invested more than $300 million worth of major renovations in one of their brewing facilities in Zacatecas, Mexico. In 1997, Grupo Modelo became the number one selling import in the United States, exceeding that of Heineken’s. The competitors of Modelo did not go down without a fight and did not let that come to be without doing anything. Therefore, the company started facing difficulties and complications in its domestic and international markets (Som 2008, p. C-248). Being the largest beer importer in 25 western states across the Unites States and being the most experienced in marketing and
References: Jun, J 2006, ‘Central Asia: Culture Shift Sends Beer’s Popularity Soaring High’, Radio Free Europe Radio Liberty’, 25 April, viewed 30 July 2012, <http://www.rferl.org/content/article/1067941.html>. Som, A. 2008, ‘Corona Beer: From a local Mexican player to a global Brand’, ESSEC Business School, case 13, pp. C-248-C-258.