Mexicos Federal Trade Commission handed down its beer market resolutions today

Mexico's Federal Trade Commission handed down its beer market resolutions today

Mexico's competition watchdog has handed down its resolution to SABMiller's charges of monopolistic practices in the country's brewing sector.

The Mexican Federal Trade Commission (Comisión Federal de Competencia) said earlier today (11 June) that it has approved a range of commitments made by market leaders Heineken-owned Cuauhtémoc Moctezuma and Grupo Modelo. The commission's review of the Mexican beer market was triggered by allegations of abuse lodged by SABMiller's Mexican subsidiary in 2010.

Among Moctezuma and Modelo's commitments are:

  • Craft brewers – defined as Mexican breweries that produce up to 100,000 hectolitres a year – will be allowed to sell their products to restaurants, bars and canteens that are clients of the two
  • The pair will standardise some of the clauses in future supply agreements in the 'traditional channel' (meaning small corner stores) and in restaurants
  • All of Moctezuma and Modelo's future supply agreements shall have a limited term
  • The two will advise their 'traditional channel' clients that have no written preferential beer supply agreement that they are allowed to purchase products from different beer manufacturers.

“We are pleased that the CFC has approved the commitments we have offered to ensure that consumers will always have sufficient choice of a wide variety of good quality beers,” said Moctezuma.

Modelo added: "We continue to welcome competition within the Mexican beer market and the closing of this file provides brewers, customers and consumers with certainty going forward."

No-one was immediately available at SABMiller when contacted by just-drinks today.

Modelo, which is now owned by Anheuser-Busch InBev, controls about 55% of the Mexican beer market, while Moctezuma's parent, FEMSA Cerveza, accounts for about 43%.

Heineken took control of Moctezuma when it bought FEMSA Cerveza, in 2010.

To see just-drinks' full coverage of the legal wrangling in Mexico, click here.