International market entry for Modelo was particularly strategic because the international market nature and the restriction faced by foreign companies while exporting their products across borders. Such an approach has shaped the brewing industry towards global strategic partnership to create a behemoth capable of taking advantage of economies of scale and other strategic benefits to enhance their market presence and future sustainability. The current global marketing has rather shifted to strategic alliance partnership to enhance global market dominance as evident in the case of InBev and Anheuser-Busch possible alliance. Its mergers with Gambrinus Inc and Barton Beers also reduced the cost of distribution, marketing, insurance and advertising. It actually created a myth “fun in the sun” which swept the U.S. This was because Modelo focused less on human image for marketing but rather focused on the experience enhanced by its products. On the other hand FEMSA faced a rather difficult time while Heineken marketing strategies caused its significant market loss to Modelo. The strategic marketing images of “fun in the sun” and strategies employed by Modelo played a pivotal role in its international growth toppling market leaders such as Heineken in the United States. These strategic alliances were especially important in terms of market penetration since less cost was incurred. Modelo chose Anheuser-Busch while FEMSA opted for Heineken. The two Mexican companies Modelo and FEMSA were forced to form strategic alliances with international distributors with sound knowledge on local market and because of the fact that they enjoyed less international restrictions especially because of the North American Free Trade Agreement (NAFTA). The two key strategies that clearly alter global beer market are strategic alliances with strategic partners and global marketing strategies that are unique and quickly identifiable. The global market trends has faced substantial changes over the past three decades with giants like Heineken being edged out by upcoming new brands such as Corona Extra from Grupo Modelo. (Grupo Sanmartin) was advised by Russell Bedford México.Learn More Trends in the global market beer Paul Weiss and Von Wobeser y Sierra worked together in the advisory and analysis regarding the right of first refusal and change of ownership provisions in various material agreements entered with various INAMEX clients and providers with effects in the US jurisdiction. INAMEX was advised in the US by Paul, Weiss, Rifkind, Wharton & Garrison LLP, with partners Laura Turano and Geoffrey Chepiga. Mexican law firm Von Wobeser y Sierra advised INAMEX, with a team led by partners Alejandro Orellana, Fernando Carreño, Edmond Grieger and Ariel Garfio, and associates Regina Godinez, José Antonio Gómez and Roberto Flores. Considering that INAMEX separated from Grupo Modelo, contracts with energy suppliers had to be renegotiated for INAMEX to remain as a standalone in these relationships The transaction also had a strong environmental and energy component. The project involved a strong financing component under which the counterparty had to grant a loan guarantee and share a pledge agreement to secure the payment of the granted loans, and also involved the negotiation with several customers and suppliers of INAMEX in different jurisdictions that had preferential acquisition rights in their favor. The sale is in line with the group's focus, expansion, and development plans in the consumer goods, retail, and technology industries. INAMEX was an important business unit for Grupo Modelo, supplying machinery and equipment to the rest of the supply chain, in addition to having highly sophisticated assets, some of which were excluded for purposes of the transaction.
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