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Heineken invests in Tecate as Mexican beer tussle heats up

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Heineken is to overhaul its Tecate brand as the major brewers vie for dominance in the US's fast-growing Mexican beer market.

Heinekens Tecate is targeting Millennials

Heineken's Tecate is targeting Millennials

The Dutch firm's US unit has lined up new packaging for Tecate Original and Tecate Light that targets Millennials, Heineken said yesterday. The redesign comes ahead of a new marketing campaign for the Mexican brand in the US as well as national distribution for Tecate Light.

"The redesign of our renowned red can will open up the Tecate franchise in the US to a new wave of consumers," said Tecate VP Felix Palau. 

Constellation Brands has credited the Mexican beer portfolio it acquired the US rights to from Grupo Modelo in 2012 for a strong financial performance in the past few quarters. 

Corona Extra and Modelo Especial are the number one and two imported beers in the US respectively, according to figures cited by Wells Fargo analyst Bonnie Herzog last week. 

Mexican beer is one of the few growth stories in US beer outside of craft, and this year Anheuser-Busch InBev launched Estrella Jalisco in ten US states to capture the trend. However, as brewers up investment, the category is becoming more competitive. Last week, an analyst warned that Constellation's high growth may come under threat from Jalisco as AB InBev targets market share.

Is there US trouble ahead for Constellation Brands' Mexican beers? Click here to find out

Heineken said today that Tecate Light is the fastest-growing light beer in the US, with 47% year-on-year growth in its current Sunbelt state markets.

The new ad campaign includes two 30-second spots in English and Spanish. The ads will air nation-wide, Heineken said. 


Sectors: Beer & cider

Companies: Heineken

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