Constellation Brands, the distributor of Corona beer and other brands, was building a factory in Mexicali, but a popular consultation promoted by López Obrador in March 2020 stopped these plans.
President Andrés Manuel López Obrador said his government reached an agreement for the US brewer Constellation Brands to build a plant in the southeast of the country, following the controversial cancellation of a previous billionaire project in the northwest.
Constellation Brands, which distributes the popular Corona beer and other brands of the Mexican Grupo Modelo in the United States, was building a factory in Mexicali, but a controversial local popular consultation promoted by López Obrador in March 2020 halted its plans.
In his usual morning press conference, the president reported that his administration explained to the company that it could not go ahead with the initiative due to the lack of water in the area and the result in the popular consultation, not supervised by national electoral authorities, against the plan.
“They understood, and now they are going to set up a brewery, but in the southeast, where there is a lot of water. And an agreement was reached,” added the president, without offering further details. Constellation Brands did not immediately respond to a request for comment from Reuters.
After the consultation, the company and the government announced that they were seeking an agreement to resolve the controversy, and last April the Mexican press published that the brewery informed its shareholders on Wall Street that it was looking for an alternative in the Mexican southeast.
The company, which was open to dialogue from the beginning, was building the plant in Mexicali with an investment of 1.4 billion dollars and intended to start operating the factory this year.
The cancellation of the project is in addition to other investments halted by the AMLO government, as López Obrador is popularly known, which have generated discontent among businessmen and strained relations with the United States and other countries.