Heineken to expand business in Mexico with $90 mln

Heineken announced on Monday that it will construct a can production facility in the northern Mexican state of Chihuahua next to its brewery in the town of Mequoi for 1.8 billion pesos, or $90 million.

According to a news release, the facility, Heineken’s sixth in the US, would create 120 direct employment upon completion and another 150 throughout construction.

While other national alcoholic beverage companies, like Becle, the parent company of Jose Cuervo, claim they are having trouble finding glass to bottle their spirits, the brewer claimed it has noticed a rise in demand for cans in the nation.

According to the National Chamber of Beer and Malted Drinks, only around 40% of the beer produced in Mexico is now sold in cans. The remainder is packaged in glass bottles.

Two of the biggest breweries in the world, Carlsberg (CARLb.CO) and Heineken (HEIN.AS), have announced that they will quit Russia, joining an exodus of Western businesses as pressure rises on Moscow following its invasion of Ukraine.

The third-largest brewer in Russia, Heineken, previously said that it would scale back activities during the transition phase to lessen the likelihood of nationalization and that it sought for a “orderly transfer” of its local firm, which generates only 2% of total sales.

The Dutch brewer has announced that its 1,800 employees in Russia will be paid through the end of the year and anticipates associated expenditures of around 400 million euros ($438 million).

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