Who Owns Modelo Beer?

Key Stats

Modelo Beer is owned by Anheuser-Busch InBev globally, except in the United States where Constellation Brands holds exclusive distribution and marketing rights. This unique ownership structure emerged from the 2013 acquisition of Grupo Modelo by AB InBev for $20.1 billion. To address antitrust concerns, the U.S. Department of Justice required the sale of American rights to Constellation Brands for approximately $4.8 billion. Today, Modelo Especial generates $5.18 billion in annual U.S. revenue according to industry reports, making it one of America’s top-selling beers. The brand continues brewing operations in Mexico while both parent companies manage different geographic markets. This arrangement has proven successful, with Constellation driving impressive growth in North America while AB InBev manages international expansion.

Who owns Modelo Beer?

The ownership of Modelo Beer operates through a dual structure involving two major beverage corporations. Globally, Anheuser-Busch InBev serves as the parent company following its 2013 acquisition of Grupo Modelo. However, the United States market operates differently due to regulatory requirements.

Global Ownership Structure

Anheuser-Busch InBev maintains ownership and distribution rights for Modelo Beer in all markets except the United States. The Belgian-Brazilian conglomerate acquired Grupo Modelo in June 2013, integrating the Mexican brewery into its portfolio of global brands.

U.S. Market Arrangement

Constellation Brands secured exclusive U.S. rights simultaneously with the AB InBev acquisition. This Rochester, New York-based company handles all importation, distribution, and marketing activities for Modelo products throughout American markets. The arrangement emerged from antitrust settlements with the U.S. Department of Justice, which required separation to maintain market competition.

Who is on the board of directors for Modelo Beer?

The board governance of Modelo Beer involves directors from both Anheuser-Busch InBev and Constellation Brands, depending on the market jurisdiction. Each organization maintains its own board structure that influences Modelo’s strategic direction.

Anheuser-Busch InBev Board Structure

The AB InBev board comprises 15 members, including four independent directors, eight members appointed by Stichting Anheuser-Busch InBev, and three members appointed by restricted shareholders. Martin J. Barrington serves as Chairman, bringing extensive experience from his previous role as Chairman and CEO of Altria Group. The board oversees global operations through four committees: Audit, Finance, Nomination, and Remuneration.

Key board members include Michele Burns and Dr. Aradhana Sarin, who provide independent oversight. The executive leadership features Michel Doukeris as Chief Executive Officer, who previously led AB InBev’s operations across China and Asia Pacific. Fernando Tennenbaum serves as Chief Financial Officer, having joined the company in 2020.

Constellation Brands Board Composition

Constellation Brands operates with a 13-member board following recent governance enhancements. Bill Newlands serves as both President, CEO, and board member. Recent additions include Luca Zaramella, CFO of Mondelēz International, and William T. Giles, former CFO of AutoZone, who joined in 2023.

The board appointments followed discussions with Elliott Investment Management, a major shareholder seeking enhanced governance. Christopher Baldwin serves as a managing partner of CVC Advisors and contributes expertise from his roles at BJ’s Wholesale Club. Daniel McCarthy brings telecommunications industry experience from his tenure at Frontier Communications Corporation.

Executive Management Teams

Michel Doukeris leads AB InBev’s global operations with a focus on digital transformation and market expansion. Marcel Marcondes serves as Chief Marketing Officer, overseeing brand strategy across the portfolio. For Constellation Brands, James Sabia functions as Executive Vice President and President of the Beer Division, managing day-to-day operations for U.S. markets.

History of Modelo Beer Co-founders

The story of Modelo Beer begins in 1925 Mexico City, where Pablo Díez Fernández spearheaded the creation of Cervecería Modelo alongside a group of 24 Spanish immigrant investors. Born in Vegaquemada, Spain in 1884, Díez emigrated to Mexico in 1905 at age 21 with funds borrowed from Dominican fathers.

Pablo Díez Fernández’s Journey

Before establishing Modelo, Díez built his fortune through bakery operations. He worked initially as an accountant for Venegas bakery, then managed La Primavera bakery. By 1912, he purchased the business and later founded Pan Ideal, Mexico’s first mechanized bread production plant. This entrepreneurial success provided capital for his brewing venture.

Founding Partners and Early Leadership

Braulio Iriarte stood out among the founding investors, with assistance from President Plutarco Elías Calles in establishing the brewery. Other notable founders included Félix Aramburuzabala, Miguel Oyamburu, and Martín Oyamburu Arce, who brought capital and business expertise. Díez became Cervecería Modelo’s legal representative in 1928, director general in 1930, and majority stockholder by 1936.

Under Díez’s leadership from 1930 to 1971, the company expanded dramatically. He acquired regional breweries producing Victoria in 1935, Estrella in 1954, and Pacífico in 1954. Antonio Fernández Rodríguez, also Spanish-born, succeeded Díez in 1971 and continued the expansion strategy. The founder’s vision of creating a model brewery for Mexico established standards that persist today.

Largest shareholders of Modelo Beer

The shareholder structure of Modelo Beer reflects its dual ownership arrangement, with different investors holding stakes in Anheuser-Busch InBev and Constellation Brands.

Anheuser-Busch InBev Major Shareholders

Stichting Anheuser-Busch InBev, a Dutch foundation, maintains the largest position at approximately 36.89% of equity, valued at roughly $39.4 billion. This foundation represents interests of Belgian founding families and Brazilian families previously associated with AmBev. Altria Group holds a significant stake following historical connections to the company.

Institutional investors play substantial roles in AB InBev’s ownership. Dodge Cox owns 41.12 million shares representing 2.04% of the company, valued at $2.52 billion. Fidelity Management & Research holds notable positions through various fund structures. The remaining shares trade publicly across multiple international exchanges.

Constellation Brands Shareholder Base

Constellation Brands, which controls Modelo’s U.S. operations, has a different shareholder composition. The Sands family maintains significant influence as founders, though the company operates as a publicly traded entity. Vanguard Fiduciary Trust holds 9.756% with 17.6 million shares worth approximately $2.85 billion.

Berkshire Hathaway represents a major institutional investor at 7.415% ownership with 13.4 million shares valued at $2.17 billion, reflecting Warren Buffett’s confidence in the beer division’s prospects. Capital Research & Management holds 6.524% through 11.7 million shares worth $1.91 billion. BlackRock Advisors maintains 4.478% with 8.09 million shares valued at $1.31 billion.

The shareholder base has evolved following Constellation’s 2013 acquisition of U.S. rights. Elliott Investment Management emerged as an influential voice in 2023, leading to governance enhancements and board additions. The institutional ownership structure provides stability while enabling strategic flexibility for the beer division’s continued expansion.

FAQs

Who currently owns Modelo Beer worldwide?

Anheuser-Busch InBev owns Modelo Beer globally through its 2013 acquisition of Grupo Modelo for $20.1 billion, except in the United States where Constellation Brands holds exclusive rights.

Why does Constellation Brands own Modelo in the U.S.?

The U.S. Department of Justice required AB InBev to divest American rights to Constellation Brands for $4.8 billion to address antitrust concerns and maintain market competition.

When did AB InBev acquire Grupo Modelo?

Anheuser-Busch InBev completed the acquisition of Grupo Modelo in June 2013, integrating Mexico’s leading brewery into its global portfolio of beer brands and operations.

What companies compete with Modelo Beer?

Modelo competes with Budweiser, Heineken, Corona, Molson Coors brands, and other major beer producers in international markets.

Is Modelo still brewed in Mexico?

Yes, Modelo Beer continues production in Mexico through Grupo Modelo’s brewing facilities, maintaining traditional methods while both parent companies handle distribution across different markets.