Group modelo

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GRUPO MODELO, founded in 15, is the leader in the production and marketing of beer in Mexico with more than 6.70% domestic and export market share.(1) It has eight brewing plants in the country, with a total annual installed capacity of 46.0 million hectoliters.(1) Currently, it brews and distributes ten brands; Corona Extra, the number one Mexican beer sold in the world, Modelo Especial, Victoria, Pacifico, Negra Modelo and other regional brands.(1) It exports five brands with presence in more that 150 countries and is the exclusive importer of Anheuser-Busch's products in Mexico, including the brands Budweiser and Bud Light.(1) Grupo Modelo trades in the Mexican Stock Exchange since 14 with the ticker symbol GMODELOC.(1)

Mission Statement

Produce, distribute and sell quality beer

• With excellent service

• At a competitive price

• Optimizing resources

• Surpassing customer expectations

• With the collaboration of employees, suppliers and distributors, contributing to their economic, cultural and social development.

• Improving the profitability of the business

• Protecting the natural resources and

• Cooperating with the progress of the community and the country.

All of the above mentioned in the Mission Statement was taken from the second page of the Annual Report 00 (see appendix). "Quality and Service have been the key for the Company's success. Through them Grupo Modelo has strengthened its leadership.(Annual Report 00, see appendix).

COMPANY'S HISTORY

In Mexico many small breweries existed during the 10's, especially in the North of the country.() Many of them had a local and regional presence, with the capacity to supply the market's demand.()

It was on October 15 when Braulio Iriarte, together with the Mexican President Plutarco Elias Calles, inaugurated Cerveceria Modelo, S.A. best known for its brand Corona.() Shortly after, Pablo Diez joined the Company with the purpose to build a corporation of national presence able to capture and satisfy consumers' needs.()

Pablo Diez who then became the Company's Chairman of the Board, CEO and major shareholder, headed the Company's expansion through the acquisition of breweries, malt plants and other strategic alliances in order to ensure the supply of raw materials required in the production process. ()

The acquired companies such as Cerveceria de Toluca y Mexico S.A. (15) producer of the brand Victoria, Cerveceria Estrella (154), Cerveceria del Pacifico (154), producer of the brand Pacifico, Cerveceria Modelo del Noroeste (160) and Cerveceria Modelo de Torreon (166), were located in strategic areas of the country.()

This expansion was possible due to Pablo Diez's long term vision and his management team integrated by Felix Aramburuzabala, Juan Sanchez Navarro, Nemesio Diez, Manuel Alvarez and Antotino Fernandez.()

During the 50's, Grupo Modelo became the leader in the domestic market.() Pablo Diez made a model company out of Grupo Modelo, using the best machinery, technology, systems, technicians and, most importantly, the best people.()

The increasing presence of the company's products throughout the country required a solid distribution network.() Thus, during the 40's Pablo Diez designated Nemesio Diez to head such a project, with the purpose to ensure the best quality service, creating the first distribution center in the city of Toluca, in 145.()

In 171 Antonino Fernandez was designated Chairman of the Board and CEO. ()

Grupo Modelo has kept the philosophy of Pablo Diez by brewing, distributing and selling high quality beer at a competitive price, optimizing resources and exceeding customers' expectations, thus contributing to Mexico's economic and social development.() Following this ideals, Antonino Fernandez has maintained the growth of the company, being responsible for the construction of two of Grupo Modelo's largest breweries, Cerveceria Modelo de Guadalajara and Cerveceria del Tropico, in 164 and 184, respectively.()

As a result of the merger of its two competitors in Mexico, Grupo Modelo lost its leadership in the mid 80's. Nevertheless, it was recovered in 11, and maintained as of today.()

On February 14, Grupo Modelo became a public company placing 1% of the company's capital in the Mexican Stock Exchange.() Prior to this, in June 1, Grupo Modelo's controlling shareholders signed an investment agreement with Anheuser-Busch (AB), by which AB acquired a minority stake in Grupo Modelo, S.A. de C.V. and its main subsidiary Diblo, S.A. de C.V.()

During the 0's, requirements and demands for quality and service have increased in the domestic and foreign markets.() Therefore, Grupo Modelo has constantly invested in the development of the its facilities and brands to continue satisfying consumers' preferences through quality products.()

Today, Grupo Modelo is the main p

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