Mexico: Limits on beer exclusivity agreements not good enough for SABMiller

Following competition regulators’ announcement of limits that will end exclusivity agreements made by Mexico’s dominant beer companies and distributors, SABMiller announced its disappointment of the ruling, saying the resolution “did not go far enough” to even the competitive playing field in the nation. SABMiller is the world’s second-largest beer brewer, but has limited access to Mexico’s beer market as Grupo Modelo and Anheuser-Busch InBev dominate about 95 percent of the sector. The nation’s Federal Competition Commission capped the extent of exclusivity agreements the companies can now make, opening up the market for other competitors, including independent craft brewers. The ruling wasn’t enough for SABMiller, however, which lodged a complaint with the regulator in 2010 over the exclusive contracts. In a statement, SABMiller said it was unfortunate the regulator will continue to permit exclusivity agreements at all.

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