7 Die in Brewery Accident in Mexico CityBy: Sean Patterson - April 8, 2013
Reuters is reporting that seven people have died in a brewery accident in Mexico City. Beer company Grupo Modelo stated that seven workers were killed in an accident involving a tank that was being cleaned and receiving maintenance. The details of the accident have not been released.
According to the report, a Grupo Modelo spokesperson stated that, “Modelo is deeply sorry for this accident and will support the affected families permanently.”
Grupo Modelo is the maker of beer that included Modelo, Pacífico, and Corona. Corona is the best-selling beer from Mexico, and the top imported beer in the U.S. Last summer, Anheuser-Busch InBev (ABI) announced that it would fully acquire Modelo for just over $20 billion. ABI is the maker of the best-selling U.S. beer, Bud Light.
In January 2013, the U.S. Justice Department filed a civil antitrust lawsuit to block the merger. The Justice Department claims that the U.S. beer market is highly concentrated, with 39% of beer sales in 2012 going to ABI, and another 7% going to Modelo. There is worry that ABI, which is a price leader for the U.S. beer industry, is seeking to eliminate competition from Modelo, which “aggressively” prices its imports.