Nestlé Waters has signed a letter of intent with Grupo Modelo to establish a strategic bottled water alliance in Mexico.

The company said yesterday (29 November) that it holds a 15% market share in Mexico's modern trade, but will gain access to traditional distribution channels in the country through the deal.

The partnership with Modelo, which owns the Corona brand and is Mexico's leading beer producer, is designed to develop the company's existing bottled water business in the country, which includes Santa Maria, S Pellegrino, Perrier and Nestlé Pureza Vital brands.

Mexico is the world's second largest bottled water market with a yearly turnover of 15bn litres and average growth of 8% per year.