Tapped Out

How US thirst for cerveza could worsen water shortages in Mexico

- Tom Philpott

Best enjoyed ice cold, the beers of Mexico are redhot in the United States. Between 2013 and 2017, sales of brews from south of the border surged 44 percent, even as domestic beer sales dipped 3.5 percent. A single company benefits most from this cerveza boom: New York-based beverage giant Constella tion Brands, which bought the US rights to Mexican megabrands Corona, Modelo, Victoria, and Pacifico as part of a $4.8 billion deal back in 2013.

Constellation’s properties now account for about 1 in 11 brews sold in the United States. For investors, this fact has gone down like a frosty Corona on a broiling beach: Since June 2012, when Constellation first signaled it would take over US distribution, the company’s stock has risen seven times over, driven largely by the explosive growth of its beer division.