Why AB InBev is doubling its investment in its new Yucatán facility
Anheuser-Busch InBev is always finding new ways to grow, both overall as a corporation and in smaller measures through the growth of all of its individual parts and pieces. One of its larger parts and pieces is Grupo Modelo, the Corona manufacturing subsidiary that AB InBev succeeded in acquiring just a few years ago. That subsidiary is now growing even further, with the announcement that Grupo Model is investing 5 billion pesos (approximately $328 million USD) in the construction of a new brewery and can production plant in Yucatán, Mexico.
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As beverage blog Brewbound reports, the news that Grupo Modelo (and by extension AB InBev) is investing in growth in Yucatán is not news per se—the subsidiary announced in January that it would be investing around 2.2 billion pesos (approximately $147 million USD) in the construction of a new brewery in the Hunucmá municipality of Yucatán. The reasoning for this construction was quite clear: according to reports from Reuters, the new brewery would provide Grupo Modelo with a more than 8 percent boost in production capability.
Now the latest announcement this week has Grupo Modelo delving even further into this construction site, investing an additional 2.8 billion pesos into the addition of an adjacent canning facility capable of producing 1 billion cans per year for the company. Why add a canning component to construction in the Yucatán? It’s simple: vertical integration and self-reliance. At the moment, it’s reported that Grupo Modelo imports cans from elsewhere to supply its production facilities.
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As the reports indicate, this new facility would allow Grupo Modelo to not only stop importing its cans, but would also give it the capability to start exporting its own cans as a supplier to other breweries in need. It’s a sizeable investment up front, but one that will save Grupo Model (and AB InBev) money—and even make it money further down the line.
Grupo Modelo plans to start construction on both the production plant and can manufacturing facility later this year.
Just Eat delivers strong first quarter growth as revenues rise 50%
Strong order growth an...
Online takeaway company Just Eat delivered a strong start to the year reporting that revenues rose 49% during its first quarter.
Strong order growth and more high-value delivery orders were credited for the upbeat results as the group posted £177mn in revenue in the first three months of the year.
The takeaway delivery operator said that UK orders rose 24% to £29.7mn during its first quarter, noting that it processed its 400 millionth British order yesterday.
UK orders were lifted by the firm’s acquisition of rival Hungryhouse in January, which added an extra 1 percentage point to UK order growth, according to the company.
The firm also reported strong growth abroad noting that international orders were up 46% to £21.9mn.
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Just Eat said that this was driven by continued triple-digit growth in Canada and strong performances in Italy and Spain which offset “softness” in Australia.
“Just Eat has had a strong start to the year,” commented Peter Plumb, CEO. “We delivered our 400 millionth order in the UK, grew well in Italy and Spain, whilst powering continued momentum in our Canadian delivery service SkipTheDishes.
“I’d like to welcome all our important new Restaurant Partners to the Just Eat family, including those from our successful recent acquisition of Hungryhouse.”
Just Eat was the top rise on the FTSE 100 index, with its shares up more than 4%.
In March, Just Eat announced that it was investing £50mn in developing its own delivery service which has helped to boost its margins.