Grupo Modelo

Grupo Modelo is a Mexican brewing company founded in 1925 and based in Mexico City. It developed from Cervecería Modelo into one of Mexico’s most important beer producers, distributors and exporters. The company’s best-known brands include Corona Extra, Modelo Especial, Negra Modelo, Pacífico, Victoria, Estrella Jalisco and León. Corona became the group’s signature international export brand, while Modelo Especial and Negra Modelo established a broader portfolio spanning pale lager, pilsner-style and darker lager formats. The brewery was established by a group of 25 Spanish immigrants, among whom Braulio Iriarte and Martín Oyamburu were prominent. Commercial sales of Modelo, Negra Modelo and Corona began during the company’s first years, and the brewery reported selling approximately eight million bottles in 1928. Grupo Modelo subsequently expanded through acquisitions and the development of additional brewing capacity. It acquired Compañía Toluca y México, producer of Victoria, in 1935 and later acquired the brewery associated with Estrella Jalisco in Guadalajara in 1954. These transactions helped give the company a geographically diverse domestic portfolio rather than relying on a single flagship label. The company’s international identity has been particularly associated with Corona Extra, a pale lager commonly sold in a clear bottle and marketed as a Mexican export beer. Corona became a leading Mexican beer abroad and was available in more than 150 countries according to reference material. Modelo Especial and Pacífico also became important export brands, while other labels remained primarily focused on the Mexican market. Grupo Modelo additionally held rights to import and distribute Anheuser-Busch products in Mexico, including Budweiser, Bud Light and O'Doul's, and had distribution relationships involving other international beer and bottled-water products. Ownership changed substantially during the 2000s and 2010s. Anheuser-Busch InBev already held a non-controlling 50 percent interest before announcing an agreement in 2012 to purchase the remaining stake for an all-cash consideration of $20.1 billion. The United States Department of Justice challenged the transaction on antitrust grounds in January 2013. The matter was resolved through a settlement that enabled the combination to proceed, with the United States rights to Grupo Modelo’s brands transferred to Constellation Brands. The acquisition was completed in June 2013. Consequently, Grupo Modelo became part of AB InBev outside the United States, while Constellation Brands owns and markets the Modelo and Corona brand rights in the United States under the settlement structure. Grupo Modelo continues to operate as an important Mexican brewing and commercial organization within AB InBev’s global system. Its activities include beer production, marketing and distribution, domestic retail development and export support. The group has also operated Extra convenience stores and introduced Modelorama Now, a delivery-oriented concept offering beer, snacks and soft drinks ordered online. Its position combines Mexican brewing heritage with globally recognizable brands and a portfolio that serves both domestic consumers and international markets.

Grupo Modelo began in 1925 with the establishment of Modelo Brewery in Mexico City by a group of 25 Spanish immigrants. Two of the prominent figures associated with its foundation were Braulio Iriarte, who owned bakeries and Molino Euzkaro, and Martín Oyamburu, an industrialist, banker and landowner connected with several Mexican enterprises. The company began marketing Modelo, Negra Modelo and Corona beers within its first years. By 1928, sales had reached about eight million bottles, indicating that the brewery had quickly developed a substantial domestic presence. Corona was introduced as a core company brand in the brewery’s early period and later became the principal vehicle for Grupo Modelo’s international identity. In 1926, the brewery adopted clear glass quarter-bottle packaging for Corona. The packaging made the brand visually distinctive, although clear glass can expose beer to light and potentially affect flavor. Grupo Modelo’s early advertising also used red poppy flowers on many materials until the 1960s, giving the company a recognizable historical advertising motif. The group expanded its Mexican brand portfolio through acquisitions. In 1935, it acquired Compañía Toluca y México, whose brewing heritage included Victoria, a Vienna-style lager first associated with Toluca. In 1954, it acquired the brewery connected with Estrella in Guadalajara. These additions complemented Modelo’s existing labels and gave the company brands with strong regional identities. Pacífico, associated with Mazatlán in Sinaloa, became another important pale-lager export label. León, a dark amber Munich-style beer with roots in southeastern Mexico, contributed a darker style to the domestic portfolio. By the late twentieth century and early twenty-first century, Grupo Modelo had become a leading force in Mexican beer production, distribution and marketing. Corona Extra developed into the company’s most internationally recognizable product and was exported to a large number of countries. Modelo Especial and Pacífico also gained recognition outside Mexico, while Victoria, Negra Modelo, Estrella Jalisco and León maintained important domestic or regional roles. The group’s business was not limited to brewing: it also operated distribution activities, owned the Extra convenience-store chain and developed Modelorama retail outlets. In Mexico, it distributed or imported selected products from other beverage companies, including Anheuser-Busch brands, and had activities involving bottled water through a partnership with Nestlé Waters. Ownership became a defining issue in the company’s modern history. AB InBev held a non-controlling 50 percent stake before announcing in June 2012 that it would acquire the remaining interest for $20.1 billion in cash. The proposed transaction prompted a challenge from the United States Department of Justice, which filed an antitrust suit on January 31, 2013. The parties reached a settlement addressing competitive concerns in the United States. Under the resulting arrangement, Constellation Brands received the United States rights to the relevant Grupo Modelo brands and became responsible for their United States distribution, while AB InBev acquired full control of Grupo Modelo outside that market. The combination was completed in June 2013. The ownership structure means that the same historical Mexican brands can have different corporate ownership and commercial control by market. Grupo Modelo remains part of AB InBev’s international organization, whereas the United States versions of Corona and Modelo brands are associated with Constellation Brands under the antitrust settlement. In the 2020s, Modelo Especial’s rise in United States retail sales demonstrated the continued strength of the portfolio, although that United States performance belongs to the Constellation-controlled business rather than to AB InBev’s Grupo Modelo operations. The company also responded to changing consumer purchasing habits by developing Modelorama Now, a delivery concept for beer, snacks and soft drinks ordered online.

1. 2023Modelo Especial becomes the top US beer by retail dollar sales

   Modelo Especial surpasses Bud Light in United States retail dollar sales.

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2. 2013Ownership transition is completed

   After an antitrust settlement, AB InBev completes the combination while Constellation Brands receives the United States rights to the relevant brands.

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3. 2012AB InBev announces full acquisition

   AB InBev announces a $20.1 billion cash agreement to acquire the remaining 50 percent of Grupo Modelo.

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4. 2008Pacífico Light is introduced

   A light version of Pacífico is launched.

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5. 1997Corona Extra leads US imported-beer sales

   Corona Extra becomes the top-selling imported beer in the United States.

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6. 1954Estrella brewery is acquired

   The company acquires the Guadalajara brewery associated with Estrella, later marketed as Estrella Jalisco.

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7. 1935Victoria brewery is acquired

   Grupo Modelo acquires Compañía Toluca y México, bringing Victoria into its portfolio.

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8. 1928Early sales reach eight million bottles

   Modelo, Negra Modelo and Corona sales reportedly reach approximately eight million bottles.

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9. 1926Corona adopts clear quarter-bottle packaging

   The brewery begins packaging Corona in clear glass quarter bottles, a format that later becomes closely associated with the brand.

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10. 1925Modelo Brewery is founded

    A group of 25 Spanish immigrants establishes the brewery in Mexico City, beginning the business that becomes Grupo Modelo.

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Mexican beer heritage combined with accessible premium and mainstream lager brands, strong export recognition and a portfolio spanning pale, light, Vienna-style and dark beers.

• Corona ExtraPale lager1925

  Corona Extra is Grupo Modelo’s signature international beer and a pale lager associated with Mexican export culture. It was brewed from the brewery’s early years and became available in a wide range of bottle sizes, cans and draught formats depending on the market. Its clear bottle is a distinctive visual feature, while the brand’s global positioning emphasizes refreshment, informality and Mexican heritage.

• Corona LightLight lager

  Corona Light is the company’s lighter interpretation of the Corona proposition. It was introduced as Grupo Modelo’s first light beer and extends the Corona brand into a lower-calorie, lighter-bodied segment while retaining the core visual and commercial identity of the flagship label.

• Modelo EspecialPilsner-style lager1925

  Modelo Especial is a pale, pilsner-style lager first bottled in 1925. It is one of the company’s principal export brands and is commonly sold in 355-milliliter glass bottles, with cans available in some markets. In the United States, its rights are held and marketed by Constellation Brands under the post-2013 antitrust settlement.

• Modelo LightLight lager1994

  Modelo Light is a lighter lager extension of the Modelo family. It was developed for consumers seeking a less-heavy beer style while preserving the brand’s Mexican brewing identity.

• Negra ModeloDark lager1926

  Negra Modelo is a dark lager in the Munich-style tradition. It was introduced as a draft beer in 1926 and is recognized by its dark color, fuller malt profile and distinctive wide brown bottle with a gold label. The brand broadens Grupo Modelo’s portfolio beyond pale lagers.

• Modelo ReservaSpecialty lager

  Modelo Reserva is a reserve-style beer based on Modelo Especial and finished using wood associated with tequila-barrel aging. It is positioned as a more specialized and premium expression within the Modelo family.

• PacíficoPale lager

  Pacífico is a pale lager originating in Mazatlán, Sinaloa. Its packaging features the city’s lighthouse within a life-ring design, linking the brand to the Pacific coast. Pacífico became one of Grupo Modelo’s important export labels, and a light version was added to the range.

• VictoriaVienna lager1865

  Victoria is a Vienna-style lager with roots in Toluca, where it was first brewed by Compañía Toluca y México in the nineteenth century. Grupo Modelo acquired the company in 1935. Victoria uses imagery of Gambrinus on its labels and serves as one of the group’s established Mexican heritage brands.

• Estrella JaliscoPilsner

  Estrella Jalisco is a pilsner associated with Guadalajara and the state of Jalisco. Its brewing history traces back to Cervecería Estrella, acquired by Grupo Modelo in 1954. The brand has been marketed both domestically and internationally, including in the United States.

• LeónDark amber lager

  León is a dark amber, Munich-type beer associated with southeastern Mexico. It combines malt sweetness with moderate bitterness and contributes a darker, more regional style to Grupo Modelo’s portfolio.

• Modelorama NowBeverage delivery and retail

  Modelorama Now is a delivery-oriented retail concept developed by Grupo Modelo. Customers can order beer, snacks and soft drinks online for home delivery, extending the company’s traditional Modelorama retail presence into digital commerce.

• Red poppy advertising motif

  Mexico

  Until the 1960s, Grupo Modelo used red poppy flowers in much of its advertising, creating a recurring historical visual motif for the brewery.

  Outcome. The motif was associated with the company’s earlier advertising period; a later campaign outcome is not specified.

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• 2013United States brand-rights settlementM&A

  The United States Department of Justice challenged the proposed acquisition on competition grounds.

  What changed. The parties settled the dispute, transferring the United States rights to Grupo Modelo’s relevant brands to Constellation Brands and allowing AB InBev to complete the broader acquisition.

  Aftermath. Grupo Modelo became part of AB InBev outside the United States, while Constellation Brands became the United States owner and marketer of the relevant brand rights.

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• 2012AB InBev announces acquisition of Grupo Modelo’s remaining interestM&A

  AB InBev already held a non-controlling 50 percent interest and sought full ownership of the Mexican brewer.

  What changed. AB InBev agreed to purchase the remaining 50 percent for an all-cash consideration of $20.1 billion.

  Aftermath. The transaction faced United States antitrust litigation and was subsequently restructured through a settlement involving the transfer of United States brand rights to Constellation Brands.

  Announced cash purchase consideration. $20.1 billion (2012 announcement)

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• Launch of Modelorama NowStrategy

  The company sought to extend its retail and distribution model into online ordering and home delivery.

  What changed. Grupo Modelo established Modelorama Now to deliver beer, snacks and soft drinks ordered through its website.

  Aftermath. The initiative added a digital delivery channel to the company’s Modelorama convenience-retail activities.

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• 2023Modelo Especial becomes the leading US beer by retail dollar sales

  Modelo Especial surpassed Bud Light in United States retail dollar sales in May 2023. The United States brand rights are held by Constellation Brands rather than AB InBev.

  Other
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• 2013United States Department of Justice challenges Grupo Modelo acquisition

  The Justice Department filed an antitrust lawsuit seeking to block AB InBev’s acquisition of the remaining Grupo Modelo interest.

  LawsuitRegulationM&A
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• 2013Grupo Modelo combination closes after antitrust settlement

  The transaction was resolved through an agreement that transferred the United States rights to the relevant brands to Constellation Brands, allowing the broader combination to close.

  M&ARegulation
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• 2013U.S. regulators challenge the proposed Grupo Modelo acquisition

  The U.S. Department of Justice filed an antitrust lawsuit seeking to block the transaction, arguing that it could reduce competition in the U.S. beer market.

  LawsuitRegulationM&A
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• 2013Constellation Brands completes acquisition of the U.S. Modelo business

  Constellation Brands completed the purchase of Modelo’s U.S. beer business as part of the remedy that allowed Anheuser-Busch InBev to complete its acquisition of Grupo Modelo.

  M&A
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• 2013Grupo Modelo becomes part of Anheuser-Busch InBev

  Following regulatory clearance and the divestiture of the U.S. business, Anheuser-Busch InBev completed its acquisition of Grupo Modelo.

  M&A
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• 2012Anheuser-Busch InBev agrees to acquire the remaining interest in Grupo Modelo

  Anheuser-Busch InBev announced an agreement to acquire the remaining 50 percent of Grupo Modelo for an all-cash consideration of $20.1 billion.

  M&A
  Source
• 2012Anheuser-Busch InBev agrees to acquire Grupo Modelo

  Anheuser-Busch InBev announced an agreement to acquire the remaining shares of Grupo Modelo, subject to regulatory approval and a remedy package involving the U.S. business.

  M&A
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1. Grupo Modelo
2. Grupo Modelo official website
3. U.S. regulators challenge the proposed Grupo Modelo acquisition
4. Constellation Brands completes acquisition of the U.S. Modelo business
5. Grupo Modelo becomes part of Anheuser-Busch InBev
6. Anheuser-Busch InBev agrees to acquire Grupo Modelo