Who Owns Modelo?

Who Owns Modelo?

Who owns Modelo? Grupo Modelo, the renowned Mexican brewing company behind popular beer brands like Corona and Pacifico, is owned by Anheuser-Busch InBev globally, except in the United States, where Constellation Brands, a New York-based conglomerate, holds ownership rights.

Founded in 1925 in Mexico City, Modelo has a rich history and has grown significantly over the years, especially beyond its native borders. The company’s global prominence surged after its acquisition by Anheuser-Busch InBev in 2013 for $20.1 billion, which integrated Modelo into the world’s largest brewing entity. 

However, AB InBev was forced to sell Modelo’s U.S. business to resolve antitrust regulations and preserve competitiveness in the American beer industry. As a result, the U.S. rights to sell and market Modelo were transferred to Constellation Brands

Since then, Constellation’s targeted regional marketing strategies have propelled Modelo to great success, making it the No. 2 imported beer in the U.S. and a top-five beer brand since 2018.

Top Modelo Individual Shareholders

Grupo Modelo is owned by Anheuser-Busch InBev (AB InBev) outside the United States, and its ownership is tied to AB InBev’s shareholders. While individual ownership in Modelo no longer exists due to the complete acquisition, AB InBev has several notable individual shareholders who indirectly own stakes in Grupo Modelo through their holdings in AB InBev.

Some of AB InBev’s top individual shareholders include members of the founding families, particularly the Belgian Vandamme, de Mévius, and de Spoelberch families. These families control a significant portion of AB InBev’s shares through their investment vehicle, Stichting Anheuser-Busch InBev. These families, including Grupo Modelo, have played a crucial role in the company’s growth and global acquisitions.

Another critical individual shareholder is Marcel Herrmann Telles, a Brazilian billionaire and one of the founders of 3G Capital, a private equity firm with substantial influence over AB InBev. Telles and other 3G Capital founders Jorge Paulo Lemann and Carlos Alberto Sicupira are known for driving AB InBev’s aggressive expansion strategy, including the acquisition of Grupo Modelo. These individuals indirectly hold ownership in Modelo through their holdings in AB InBev.

Top Modelo Institutional Shareholders

Constellation Brands, Inc.

In the United States, Modelo is owned entirely by Constellation Brands Inc., a publicly traded company. Therefore, the top Modelo institutional shareholders are Constellation Brands Institutional shareholders.

RRA&Z Holdings LLC

With an 11.25% stake, RRA&Z Holdings LLC is one of the major institutional shareholders of Constellation Brands, Inc. (and Modelo U.S., by extension). The company’s holdings amount to 20.4 million shares, reflecting its confidence in Modelo’s future prospects. The valuation of its holdings exceeds $5 billion, indicating a substantial investment in the company.

Vanguard Fiduciary Trust Co.

Vanguard Fiduciary Trust Co. is also among the top institutional shareholders of Constellation Brands, Inc., owning 13.7 million shares, which represents 7.554% of the company’s total shares. Their holdings are valued at approximately $3.4 billion. Vanguard is recognized for its global expertise in asset management, catering to a broad range of investors, and offering cost-effective financial solutions.

Capital Research & Management Co.

Capital Research & Management Co. (International Investors) holds a significant stake in Constellation Brands, Inc., owning 10.96 million shares, accounting for 6.021% of the company’s outstanding shares. The value of their holdings amounts to approximately $2.7 billion. As an internationally renowned investment firm, Capital Research & Management Co. adopts a global perspective in its investment approach and seeks opportunities across various sectors and markets.

These institutional shareholders collectively represent a substantial portion of Modelo’s U.S. ownership. Their significant investments in Constellation Brands, Inc. indicate their confidence in its growth potential, further solidifying its position as a dominant player in the beverage industry.

Anheuser-Busch InBev

Grupo Modelo, the renowned Mexican beer company behind brands like Corona and Modelo Especial, is owned by Anheuser-Busch InBev (AB InBev) outside the United States. This makes AB InBev’s institutional shareholders the top institutional shareholders of Modelo. AB InBev is a publicly traded entity listed on multiple stock exchanges, with its ownership distributed among several prominent institutional investors. 

As of September 2024, here are some of the primary institutional shareholders shaping the ownership and strategic direction of Modelo:

Stichting Anheuser-Busch Inbev 

Stichting Anheuser-Busch InBev, a Dutch foundation organized under the laws of the Netherlands, holds a substantial stake in AB InBev, commanding approximately 36.89% of the company’s equities, valued at around $39.4 billion. Stichting Anheuser-Busch InBev was established as part of the merger between Anheuser-Busch and InBev in 2008 and the subsequent formation of AB InBev. 

This foundation plays a crucial role in managing AB InBev’s voting shares, which gives it significant influence over key strategic decisions regarding Grupo Modelo’s operations. Its substantial ownership ensures the foundation has a decisive say in major corporate decisions, including those affecting Modelo’s global strategies and market performance.

Eugenie Patri Sebastien SA

Eugénie Patri Sébastien S.A. (EPS) is a Luxembourg-based holding company managing the interest in AB InBev of some of InBev’s Belgian owner families.

With a 7.453% stake valued at about $7.97 billion, Eugenie Patri Sebastien SA further complements AB InBev’s ownership structure, actively contributing to the entity’s financial stability. Eugenie Patri Sebastien SA’s involvement underscores the blend of private and institutional investment that supports AB InBev’s broader market strategies, including those about Modelo.

Anheuser-Busch InBev SA/NV

The parent company, Anheuser-Busch InBev SA/NV, holds a minority share of approximately 1.971%, valued at around $2.1 billion. This stake reflects AB InBev’s continued vested interest in the performance and management of its brands, including Modelo.

These institutional shareholders collectively influence AB InBev’s decisions, affecting Grupo Modelo’s operations and strategic direction. Their investments not only support AB InBev’s financial stability but also play a key role in shaping the global presence and market strategies of Modelo’s brands.

History of Modelo Ownership

Grupo Modelo was founded in 1925 in Mexico City by a group of entrepreneurs including Pablo Díez Fernández, a Spanish businessman who had recently immigrated to Mexico. It was initially known as Cervecería Modelo. Over the decades, it has become one of Mexico’s most successful and influential beer companies. Known for producing renowned brands like Corona, Modelo Especial, and Negra Modelo, Grupo Modelo became a dominant player in Mexican and international beer markets.

For much of its history, Grupo Modelo remained a family-owned business, with the descendants of its founders maintaining control over the company. The company continued to expand internationally, with Corona becoming one of the most popular imported beers in the United States by the late 20th century.

Cervecería Modelo changed its name to Grupo Modelo in 1991. In 1993, Anheuser-Busch acquired a minority stake in Grupo Modelo, purchasing around 17.7% of the company for $447 million. This marked the beginning of a close relationship between the two brewing giants, though Modelo retained its independence and continued to operate autonomously. Over the following years, Anheuser-Busch gradually increased its non-controlling stake in Modelo to 50%.

In 1994, the company went public, listing 13% of its shares on the Mexican Stock Exchange. This move allowed for more significant capital influx and expansion opportunities. 

In 2012, Anheuser-Busch InBev, which had formed in 2008 following the merger of Anheuser-Busch and InBev, announced its intention to acquire the remaining shares of Grupo Modelo for $20.1 billion.

This acquisition would make Grupo Modelo a wholly-owned subsidiary of AB InBev, giving the global beverage giant control over Modelo’s iconic brands. Due to antitrust concerns in the United States, AB InBev was required to divest some of Modelo’s U.S. operations, including its rights to sell Corona and other brands in the U.S.

In 2013, Constellation Brands completed its acquisition of Grupo Modelo’s U.S. beer business from AB InBev for about $4.8 billion. This means Grupo Modelo beer brands such as Modelo, Corona, and Pacifico, would then be owned by Constellation Brands in the U.S. However, AB InBev retained control of Modelo’s operations outside the U.S.

Today, Grupo Modelo remains a key part of AB InBev’s global beer empire, with its brands continuing to perform strongly in the Mexican and international markets. The shift from a family-owned Mexican company to a global brewing powerhouse marks a significant chapter in Modelo’s ownership history.

Conclusion

The ownership structure of Grupo Modelo reflects a complex interplay of global interests in the beer industry. While Anheuser-Busch InBev holds ownership rights to Modelo outside the United States, Constellation Brands has effectively captured the brand’s significant market presence within the U.S., transforming Modelo into the country’s top imported beer. 

This dual ownership underscores how strategic decisions in international business can directly influence local market dynamics and brand positioning. The involvement of major institutional shareholders, alongside influential family-owned entities within AB InBev, further shapes Grupo Modelo’s iconic brands’ operational strategies and growth trajectories.
As both companies continue to navigate the competitive landscape, Grupo Modelo’s legacy remains a testament to the blending of heritage with modern corporate governance in the global beverage market.

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