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October 21, 2024
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“We are a brewery and also a technology company”: CEO of Grupo Modelo

“We are a brewery and also a technology company”: CEO of Grupo Modelo

We are an intensely technological company, says Daniel Cocenzo, president of Grupo Modelo. “Gone are the times when technology was only a matter of technology groups. We are a brewery that uses technology to develop our products as was the case with zero alcohol beer… we use technology to better meet the challenge of consuming less and less water per liter produced and we also use technology to better serve our supply chain. distribution”.

Daniel Cocenzo was born in Brazil and has been working at AB InBev for a quarter of a century. He became CEO of the largest beer company in Mexico at the beginning of 2024. “The challenge of managing a group that has had such accelerated growth in recent years is enormous. We are in a moment of maturation, where we see great opportunities for the country and for the industry we are in. In my first year in Mexico, I have focused a lot on small clients, on supporting the digital transition of small businesses. “They are a very important part of our business, due to the number of points of sale they represent.”

At the center of the digital transition strategy is the Bees app. “It is important that small businesses have tools to be more efficient. These are times of many changes and great competition.” Through Bees, stores place orders and manage their payments and inventories, “we offer Modelo products, but also other brands. We help them better manage their time and resources…we also have another platform that we call Model entrepreneurs, in which we offer training in financial management, management and leadership, among other things.”

The interview with Daniel Cocenzo takes place in the context of the days promoting responsible beer consumption. Modelo’s senior management team visits small businesses to communicate the message and listen to their clients “It is a matter of responsibility, but also a business strategy. We are not interested in explosive consumption. We look for moderate and constant consumption. We talk to the people who run the stores and try to reinforce messages such as Do not sell to minors. We are also promoting Corona Zero, a beer that is the result of technological development. The flavor is almost identical and ideal for reducing alcohol consumption. In Mexico, there is enormous potential. Non-alcoholic beers are 0.6% of total beer sales, but they have been growing at a rate of 30% annually for three years. In Europe, there are countries where non-alcoholic beers are 10% of total sales.”

Next year, Grupo Modelo will turn 100 years old, “we are preparing to celebrate, but we are also aware of everything that that implies. If we want to last a hundred more years, we have to be close to society and be part of the solution on the issues that matter most to it. In addition to responsible consumption, we are very involved in the efficient use of water. It is one of the five most important indicators for us. Every year, we look for ways to use less water per liter of beer produced. Some of our plants are among the best in the world in this category.”

Water and responsibility

The Aguas Firmes program is a crucial part of this strategy, “in 2021, we started, together with the German Cooperation Agency, a program to make better use of aquifers. The first phase was in Zacatecas and Hidalgo, where there were reforestation actions and construction of green infrastructure. The goal is to infiltrate six million cubic liters, the equivalent of the annual consumption of 30 thousand people. We already have the second stage ready, where we will work with the group of Coca Cola bottlers and the German agency.”

“I am an optimist by nature and I am very optimistic about the possibilities that exist for us in Mexico,” says Cocenzo. For 2025, they maintain an ambitious investment plan, which includes expansion of production capacities, technological development and new products (in 2024, Corona Golden Light was launched). “In 2026 there will be the Soccer World Cup and we are official sponsors. We will have some activities. We had the kick off a few weeks ago with an all-star game in Monterrey.”

Grupo Modelo operates 11 brewing plants in Mexico: eight industrial plants, two artisanal and one experimental. In addition to 10 vertical operations plants (glass windows, malthouses, boats and plasitapas).

Since AB-InBev took control of Grupo Modelo in 2013, the company has opened two new breweries. The first was the Cervecería Yucateca located in the Municipality of Hunucmá, Yucatán, which opened its doors in 2017 with a capacity of seven million hectoliters per year and potential expansion to 15 million hectoliters.

The second is the Apan Brewery, in Hidalgo, with a capacity of 12 million hectoliters per year and potential for expansion to 24 million hectoliters. The latter involved an investment of more than 14,000 million pesos.

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