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New beer laws will not apply to OXXO stores

August 14, 2013

New rules imposed by the Federal Competition Commission (CFC) to open the domestic beer market to microbreweries will not affect two mayor convenience stores, the CFC admitted this week.

The law limits the exclusivity agreements long-favored by Mexico’s beer duopoly in bars, restaurants and stores across the nature, but will not impact sales in OXXO and Extra stores.

OXXO, which only stocks beers from Cuauhtemoc-Moctezuma, is owned by Femsa, an investor in Heineken, the owner of Cuauhtemoc-Moctezuma. Likewise, the Extra convenience stores are owned by Mexico’s other major beer producer, Grupo Modelo, and exclusive stock its produce.

These stores will not be obliged to stock beers from rival companies because this is a matter of private distribution, the CFC conceded this week. Moreover, beer producers are still allowed to maintain exclusivity agreements with 25 percent of their distributors, although this number must be reduced to 20 percent by 2018.

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