Model group

Grupo Modelo is a Mexican brewery that specializes in exporting beer to most countries in the world, founded by Spanish businessmen Pablo Díez Martín Oyamburu Arce and Miguel Oyamburu Arce in Mexico City in 1925. Its export brands include Corona, Modelo and Pacífico. It currently produces 17 national brands, including Corona Extra (the best-selling Mexican beer in the world), Modelo Especial, Victoria, Pacífico, Negra Modelo, Montejo and León. It also exports seven brands, Corona Extra, Corona Light, Modelo Especial, Negra Modelo, Pacífico, Montejo and Estrella Jalisco, being present in more than 180 countries. The artisanal brands Cucapá, Bocanegra, Tijuana, Mexicali and others have been part of its portfolio since 2014.

The company has an annual installed capacity in Mexico of 90.5 million hectoliters^{[citation required]} of beer and is the importer in Mexico of the Budweiser, Bud Light, Stella Artois, Michelob Ultra, O'Doul's brands, as well as specialty beers from the Leffe, Hoegarden, Becks and Goose Island brands produced by Anheuser-Busch InBev in various parts of the world.

Grupo Modelo has ten brewing plants in Mexico, including seven industrial plants, two artisanal plants and one experimental plant. It also has ten vertical operations plants (glass windows, malt shops, canisters and plasitapas). Through a strategic alliance with Nestlé Waters, it produces and distributes the Sta. María and Nestlé Pureza Vital bottled water brands in Mexico, among others.

In 1994, Grupo Modelo began trading on the Mexican Stock Exchange, with the ticker symbol GMODELOC, and in 2011 it became part of its Sustainable IPC. Additionally, it was listed as American Depositary Certificates (ADR) under the symbol GPMCY in the OTC markets of the United States and in Latibex, in Spain, under the symbol XGMD. In 2013, all shareholders were liquidated and it ceased trading on the Mexican Stock Exchange, retaining the name of its brands and brewing plants, beginning production in other countries.

In October 2016, Mauricio Leyva Arboleda was appointed CEO of Grupo Modelo and president of the Central America Zone of Anheuser-Busch InBev as successor to Ricardo Tadeu.

History

Grupo Modelo began in 1925, and its founders were a group of twenty-five Spanish immigrants among whom stood out: Braulio Iriarte, owner of bakeries and Molino Euzkaro, in Mexico City, and Martín Oyamburu, industrialist, banker and landowner, founder of Hulera Euzkadi, Banco Español de Crédito and oil fields in the Veracruz area and dairy ranches in the Lindavista area, inaugurated the Cervecería Modelo, and three years later the marketing of the Modelo, Negra Modelo and Corona brands would begin., which in 1928 reached 8 million bottles sold.

• In 1930, he launched the Black Model brand.
• In 1933, Martin Oyamburu and his brother Miguel attracted Pablo Diez Fernández emigrante from León, as they were partners, friends and compadres, shareholders from the beginning of the company and vocal of his Board of Directors since 1926; together they had a yeast factory located north of Mexico City, where Félix Aramburuzabala, grandfather of María Asunción Aramburuzaba
• In 1935, as part of the celebration of the tenth anniversary of its foundation, Grupo Model put on sale its first extra light beer, Moravia. This same year, Martin Oyamburu Arce and his brother Miguel bought, for the Model Cerveceria, the Toluca Cervecera Company and Mexico, manufacturer of the Victoria and Pilsener brands. On the day of the purchase he sent to publish in all the newspapers of Mexico the phrase: "La Victoria is ours", origin of the current slogan.
• At the death of Braulio Iriarte, the brothers Oyamburu Arce and Pablo Diez Fernández became the only partners of the brewery.
• In 1936, as a result of the crisis of 1929, the Model went through a period of great difficulties, so Martin Oyamburu developed a distribution strategy based on distributor agencies throughout the country, taking advantage of that "in every city of the country there was always a successful Spanish with ambition and desire to work" (sic). They were given agencies and sent the beer to sell. "So you take advantage of the local force."

During World War II, when other Mexican breweries took advantage of a new North American opening, Modelo dedicated efforts to strengthening its national sales network. In 1943 he used the advertising slogan "20 million Mexicans CANNOT be wrong." Subsequently, Pablo Diez, Emilio Suberbil and Los Oyamburu founded the company Extractos y Maltas, S. A.

• Between 1953 and 1954, Model publicists launched a campaign that brought cartoonists to their ads, who drew characters from the art media, journalists, athletes, writers and other popular types.
• In 1964, publicity sought to promote large bottles called "Corona Familiar", announced as "the beer of their home", to direct their sales to housewives.
• In 1966, Model began the production of fast cooling cans with its line of "frescobots" of Special Model.
• In 1967, the Family Crown was offered with "abre-cierra" cap, and that same year it came to Mexico the millipore microbiological control system that made possible the production of bottled barrel beer.

To achieve this, Cervecería Modelo acquired several breweries in the Mexican Republic. Cervecería Modelo expanded its infrastructure by acquiring previously established companies and building its own plants:

• Model brewery of Mexico, Mexico City (created in 1925)
• Company Cervecera de Toluca y México, Toluca, Estado de México (acquired in 1935 - currently out of operation)
• Pacific brewery in Mazatlan, Sinaloa (acquired in 1954)
• Cervecería La Estrella, in Guadalajara, Jalisco (acquired in 1954)
• Model Northwest brewery, in Ciudad Obregón, Sonora (acquired in 1960 - from the majority association of Model with the company Investments and Promotion of the Northwest, S. A.)
• Cervecería Modelo de Torreón, Coahuila (created in 1967) - the result of the liquidation of the Laguna Cervecera Company.
• Trópico Cervecera Company, in Tuxtepec, Oaxaca (created in 1984)

• 

  Zacatecas Cervecera Company, in Calera, Zacatecas (created in 1997) - the world's largest brewing plant, which has a capacity to produce up to 24 million hectoliters per year.
• Experimental plant, Mexico City
• Artisan plants, Baja California (Tecate and Tijuana)

Pablo Diez Fernández, a Spanish immigrant from León and president from 1932 to 1971, led a policy of expansion of the company, shareholder from the beginning of the company and vocal of his Board of Directors since 1926, the Leon businessman followed the slope of his businesses linked to the production of bread and yeast and was also the promoter of new adventures, one of them, Pan Ideal, is considered the first Mexican market in the Republic.

This business mission would be improved by his nephew Antonino Fernández Rodríguez, also Spanish of León, who in 1949 moved to Mexico and entered the Model Group, starting as a warehouse employee. In 1958, Antonino coordinated the construction of Cervecería Modelo de Guadalajara, which built the master brewers he had trained, with an extraordinary result: Antonino was responsible for making important innovations in production and organization. It was commissioned, for example, to prepare and train young Mexican engineers—who recruited into the best universities in the country—to turn them into the company's brewing teachers. The brewery of Guadalajara was the third of the Group, after Mexico City and Mazatlan, and this was followed by the construction or acquisition of another four, culminating in the construction of the Zacatecas plant, one of the largest in the world.

D. Pablo Diez Fernández, received the Mexican Order of the Aztec Eagle in July 1969; the highest distinction granted to foreigners in Mexico for prominent services provided to the Mexican nation, to humanity or for their high achievements, from the then Chancellor of the Republic, D. Antonio Carrillo Flores.

In 1971 D. Antonino Fernández Rodríguez was appointed president of the Board of Directors and CEO of the Model Group. He continued as CEO of the company until 1997 and as president of the Board of Directors until 2005. He was a creator of several companies, including New National Factory of Vidrio, Cebadas and Maltas, Inamex de Cerveza and Malta, Company Cervecera del Trópico and Industria Vidriera del Potosí. Antonino Fernández received several awards throughout his life, including medals of honor and of military merit, and King Juan Carlos I of Spain appointed him knight of the Grand Cross of the Order of Isabella the Catholic. In addition, he was named a distinguished visitor and received badges from several cities in Mexico and the world, the Honorary Medal of the Spanish Casino and the Tlamatini Award awarded by the Universidad Iberoamericana, both in Mexico.

Background

The antecedent of this corporation was the creation at the end of the 70s of Diblo, S. A. de C. V., a holding company that held the shares of the factories; of Consorcio Distributivo, the holding company that holds the shares of the agencies, and of Expansión Integral, the company that had control of the real estate companies. Until then, general guidelines were taken at the Mexico City brewery, the headquarters. With the reorganization, policies were unified and central directions for all operations were created. As a consequence of this trade agreement, there was an increase in competition in the national market between Mexican and imported brands, which was favorable for Grupo Modelo.

In February 1994, Grupo Modelo became a public company by placing 13 percent of its share capital on the Mexican Stock Exchange.

In 2013, Anheuser-Busch InBev reached an agreement with the Department of Justice to end the dispute over its $20.1 billion acquisition of Grupo Modelo.

The largest brewing company in the world has tried since June 2012 to buy half of Grupo Modelo that it does not yet own. The Justice Department prevented the deal for fear that a company of such size would stifle competition in the United States.

The agreement, announced on Friday, April 19, 2013, is similar to a modified one that was announced earlier this year, which called for the sale to Constellation Brands Inc. of the entire business of the Model Group in the United States. Through a statement sent to the Mexican Stock Exchange (BMV), it was observed that Grupo Modelo was informed by Anheuser-Busch InBev about the closing of the Public Acquisition Offer (OPA) of the outstanding shares of Grupo Modelo. by its subsidiary Anheuser-Busch Mexico Holdings, of which AB InBev was not the owner.

News

Grupo Modelo has more than 32 thousand^{[appointment-required] [how many?]} employees.

Currently, it continues to invest in expanding and modernizing its productive capacity in Mexico. In May 2017, the Cervecería Yucateca opened in Hunucmá, Yucatán, which involved an investment of more than 8,500 million pesos and has an initial capacity to produce 7 million hectoliters of beer per year (5.4 million 355 thousand beers per day). and 1,950 million per year).

Through the Grupo Modelo Foundation, the brewing company promotes the responsible consumption of its products among adult customers through various programs. Likewise, it promotes campaigns to raise awareness about the importance of avoiding inappropriate forms of consumption: Consumption by minors; consumption by pregnant women; alcohol and driving, and explosive consumption (binge drinking).

After the legal constitution of Grupo Modelo, S. A. de C. V., on November 21, 1991, the industrial consortium is made up of:

• Ten brewing plants in Mexico, including seven industrial plants, two artisans and one experimental plant.
• Two mallets
• A glass consortium
• A corporate cartonero
• A company dedicated to engineering, manufacturing and installation of machinery and equipment
• Plastic and aluminum packaging factories
• Distributor agencies and sub-accesses in Monclova Coahuila is a distributor
• Real estate
• Distributors Modelramas
• Extra convenience stores

For 14 consecutive years Grupo Modelo has received the distinction of Socially Responsible Company (ESR), in recognition of its social responsibility practices, it is a pioneer in the participation of the National Environmental Audit Program promoted by PROFEPA and in all operations of its plants has 100% wastewater treatment.

Modelorama

Modelorama is a retail store dedicated to the sale of beer and its peripherals, connecting Grupo Modelo brands directly with the end consumer. It consists of the development and expansion of a distribution network through local entrepreneurs and is based on a franchise-type business model that offers those who invest the opportunity to start a profitable business.

• Each Modelrama is operated by independent entrepreneurs.
• Today there are 10,000 Modelramas.

Certification and international expansion

To implement international Quality Assurance standards in the Group's factories, Cebadas y Maltas and Inamex de Cerveza y Maltaecibir received the ISO 9000 Certificate in 1997. Most of the companies were certified the following year.

The international expansion of Modelo products began in the south and southwest of the United States, where Mexican beer enjoyed great popularity. Along with postcards, crafts and other souvenirs, North American tourists brought beer when they returned from their vacations in Mexico.

As of January 2, 2007, Grupo Modelo and Constellation Brands created the association Crown Imports, LLC. (Crown) for the import and marketing of the portfolio of export brands of beers produced by the Group throughout the territory of the United States of America.

On April 2, 2015, the Group and Cargill Incorporated (Cargill) reached an agreement to establish a strategic alliance for the supply of barley and malt; Likewise, the Group sold to Cargill 49% of its interest in Integrow Malt, LLC, (Integrow), formerly GModelo Agriculture, whose predominant activity is the transformation of barley into malt and is located in Idaho Falls, USA

In 2011, Modelo Especial occupied the third position in the preferences of North Americans and Corona Light was the first among the imported light ones. ^{[citation required]}

Main products

The following brands are owned by Model Group:

• Extra Crown
• Crown Light
• Crown Zero
• Barrel
• Star
• León
• Special model
• Black Model
• Amber model
• Montejo
• Pacific
• Pacific Light
• Tropical Light
• Victoria
• Ideal Beer: Azabache and As of Gold
• Cucapá
• Bocanegra
• Tijuana
• Mexicali

Model Group is also an exclusive importer in Mexico of the following global brewing brands:

• Budweiser
• Bud Light
• Michelob ULTRA
• O'Doul's
• Stella Artois

From the beginning of 2007, the Model Group established an agreement with Nestlé Waters for the production and distribution of water in different brands and presentations:

• Perrier
• Vital purity
• San Pellegrino
• Sta. Mary

Competition sector

Before Heineken purchased Cervecería Cuauhtémoc Moctezuma, Grupo Modelo, together with Cuauhtémoc Moctezuma, formed a duopoly that constituted 98% of the Mexican market in beer production.

Since the end of 2008 when that transaction was carried out, Heineken has strengthened as a company and today represents the main competition for Grupo Modelo, mainly for its Tecate beer, which has been very successful recently.

Marketing

The process of expansion to other markets began with Canada and Japan in 1985, followed by Australia and New Zealand. In 1989 the brand was already present in Russia, Africa and Latin America; Today it also trades with Brazil and China.

Currently, Grupo Modelo is present in more than 180 countries, and Corona Extra is the beer with the most presence in the market.

In 1943, the advertising slogan that distinguishes the company began to be used: “And twenty million Mexicans cannot be wrong.” In 1966, the first canned beer entered the market: Modelo Especial.

Grupo Modelo received the "Advertiser of the Year" by the 28th edition of El Sol, Ibero-American Festival of Advertising Communication, to be held on May 30 and 31, 2013, as well as June 1 of the same year in the city of Bilbao, Spain.

In a statement, he was awarded recognition for the trajectory of creativity and presence of the Corona Extra brand.

He added that from 2010 to date the campaigns carried out by JWT Spain, his current advertising agency, obtained nine gold soles, seven silver, four bronze and the Outdoor Grand Prix in 2011 for the Hotel Corona Save campaign. the Beach.

Additional projects

Grupo Modelo has developed additional initiatives that seek to position Grupo Modelo as an engine of development for the country. Among them is:

• Levadura de Ideas
• Brewing Data Cup
• Water Fund

Labor conflicts

Grupo Modelo's main strategy to reduce its operating costs - from which it has obtained most of its profit growth - is to reduce the standard of living of its workers. The consortium has been involved in numerous scandals related to this labor policy.

In 1989, Grupo Modelo violently broke the strike held by workers at the Cervecería Modelo plant in Mexico City, and fired more than 2,000 of them.

In September 1992, the traditional Cervecería Yucateca closed, leaving 700 workers unemployed. He secretly negotiated the closure with the leaders of the employers' protection union (charro union) Revolutionary Confederation of Workers and Peasants (CROC), excluding the workers at all times.

In that same year, 200 transporters set up a sit-in with their trailers outside the Corona plant in Zacatecas, accusing the company of failing to fulfill a commitment made in exchange for the sale of their land. "And now they leave us without work when we still haven't finished paying for our units." they asserted.

In January 2005, the consortium forced 3,500 workers from Compañía Cervecera de Zacatecas to resign in order to subcontract them again through a tertiary company. With this "administrative restructuring" Workers lost most of their benefits, including profit sharing. Rigoberto, José Luis, Francisco, Alex, Jaime and Edgar, electromechanical engineers, declared to a national newspaper: "They assigned us unbearable work rhythms, like slaves: we entered at 6 in the morning to leave at 2 p.m., but at that moment they informed us that we had to double shift, until 11 at night. We also had to fill out our graphics and systems reports, we left the plant at almost one in the morning... and at 6 in the morning we had to be back. Like this all week. The worst began when they decided to leave us without our day of rest, because the day before they told us: tomorrow you come to work, we are going to pay you for your day of rest.

If they did not show up, they were simply sanctioned for "unjustified absence" and with the preparation of the respective "report". They added that they pressure them until people flee because of the heavy pace of work: "They don't want people with experience and seniority; They want to hire new staff, who they can mold in their own way."

In February 2006, farmers from Tlaxcala denounced that Grupo Modelo imposes unfair prices on the 50,000 barley producers and monopolizes the state's water resources.

In July of the same year, the company Industria Vidriera del Potosí, a subsidiary of Grupo Modelo, fired five worker representatives who demanded better working conditions. Jesús Rodríguez, one of those fired, indicated: “We have no security, our food consists of Maruchan soup, crackers and an instant sachet to make water. There is verbal and physical abuse by the advisors to the workers, there have even been injuries and those responsible are not punished, the transport routes are not adequate, many workers have to walk up to half an hour to board the company transport, among other things that we posed to the company representatives. Therefore, we think that it is an act of intimidation on the part of the company to have fired us.” Francisco Cruz, advisor to the dissatisfied workers, said that salaries were below 100 pesos per day.

The company also tried to prevent the union from becoming independent from the Confederation of Mexican Workers (CTM), another Mexican employer protection union, and becoming democratized. After several protests and a work stoppage, the workers achieved the reinstatement of those dismissed and the recognition of the independent union, SUTEIVP.

In July 2007 the corporation was involved in another conflict at the Cervecería Modelo in Lago Alberto, where the workers went on strike denouncing unjustified dismissals and labor mistreatment, and demanding the dismissal of the Cetemista leaders from their union. Without However, on that occasion the company imposed a new committee from the same CTM.

In January 2008, Grupo Modelo fired more than 250 workers again from the Industria Vidriera del Potosí Company, including all union representatives. The workers argued that the measure aims to "destroy our union, the SUTEIVP, since in 2006 we managed to democratize our group and remove the leaders of the CTM, who never defended us. (...) In our review last year we achieved new jobs and a 19% pay rise. (...) They intend to punish us in the eyes of the other Potosí workers so that no one tries to imitate us."

The company has threatened the remaining workers with dismissal as well if they do not agree to join a CROC union led by Salim Kalkach. On May 9, more than 200 members of the Federal Preventive Police, state police and private guards, carrying assault weapons, positioned themselves inside the IVP facilities, where employees of the Federal Conciliation and Arbitration Board organized a simulation of a union election. The workers were led in small groups to a room where they had to place a supposed vote on a table in an open manner and under the gaze of the company's directors. The intended vote consisted of a ballot with the printed legend “I vote for CROC” that was given to the workers upon entering the room.

The SUTEIVP, for its part, has appealed to Mexican and international legal authorities, and has held protests in San Luis Potosí and the Federal District, including a sit-in in front of the Model Group offices in the luxurious Zedec Santa Fe colony in Mexico City.