Mahou San-Miguel has signed a distribution deal with Grupo Modelo that will see its Mahou lager enter Mexico for the first time.

Modelo will distribute Mahou lager across both the off- and on-trade, Spain-based Mahou-San Miguel said yesterday (17 November). The group said that it sees an opportunity in Mexico's "growing niche market" for imported, premium beer.

Mahou is set to benefit from Modelo's position as Mexico's largest brewer by volume. Consumers in Mexico drink 7bn litres of beer annually, around twice that consumed in Mahou's native Spain.

For Modelo, meanwhile, the deal offers the firm another premium beer with which to combat the Heineken brand. Heineken owns the country's second largest brewer, FEMSA Cerveza. Anheuser-Busch InBev has a 50% non-controlling stake in Modelo.

Source:Just-drinks