{"id":50026683,"date":"2019-05-09T19:09:43","date_gmt":"2019-05-09T18:09:43","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=26683"},"modified":"2023-03-12T17:52:38","modified_gmt":"2023-03-12T17:52:38","slug":"26653-water-or-beer","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/water\/26653-water-or-beer\/","title":{"rendered":"Water or beer?"},"content":{"rendered":"

US company Constellation Brands has been constructing a giant brewery in northern Mexico for over two years. It resembles the site of a massive music festival. The ring-fenced property, which sprawls across more than\u00a0350 hectares<\/a>, could become one of Mexico\u2019s largest breweries \u2013 if residents of the nearby city of Mexicali do not derail it.<\/p>\n

In 2006, Constellation Brands acquired rights to Grupo Modelo, producer of iconic Mexican beers Corona, Victoria, Pac\u00edfico and Modelo. The company began construction of the Mexicali factory in 2015. Shortly afterwards, it signed a secretive deal with the local government guaranteeing it water supplies. The move sparked a violent conflict in an arid region where resources are under increasing stress because of climate change.<\/p>\n

<\/p>\n

\"\"
Constellation Brands photo: Alejandra Cu\u00e9llar<\/figcaption><\/figure><\/p>\n

<\/div>\n

On approaching the factory to take a picture, a man behind a metal gate jumps out of his chair. A private security van appears behind him. A third security guard appears accompanied by a German shepherd. He flashes his cell phone, taking pictures of me and my car\u2019s license plate. Though the company denies any wrongdoing in the water conflict, they are clearly on high alert.<\/p>\n

\u201cThe protests against Constellation Brands have fostered an entire social movement,\u201d says Iv\u00e1n Mart\u00ednez Zazueta of campaign group Mexicali Resiste<\/a>.\u00a0\u201cWhen people realised that this company would be forcibly taking water from local communities, it caused uproar.\u201d<\/p>\n

Water scarcity<\/h2>\n

The production of a litre of beer, which often involves pasteurisation using steam and necessitates the regular cleaning of barrels, can require up to four litres of water. Constellation Brands\u2019 Mexicali factory requires 20 million cubic metres of water per year, according to a Baja California State official document. The state government privately guaranteed the company this annual volume. Yet it may be difficult to ensure.<\/p>\n

<\/p>\n

\"\"<\/p>\n

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Alfonso Cortez Lara, a researcher from the University of Michigan State, said water supplies from the Colorado River, Mexicali\u2019s lifeblood, have been badly hit by drought in recent years. He added that the US and Mexico have signed a treaty to grant the latter 1.8 billion cubic metres of water annually from the river.<\/p>\n

Earlier this year, US President\u00a0Donald Trump<\/a>\u00a0acknowledged the problem of dwindling resources and signed a law approving contingency plans in the event of further scarcity. US states that the river feeds would receive less water, he declared.<\/p>\n

Beer resistence<\/h2>\n

The people of Mexicali became aware of Constellation Brands in 2016 when Francisco Vega, governor of Baja California, approved a new law that\u00a0privatised<\/a> drinking water, liberalised tariffs, and facilitated the company\u2019s access to water.<\/p>\n

The law, which was approved behind closed doors amid rumours of corruption, led to the biggest protests Mexicali had seen in years.<\/p>\n

\u201cI had never seen so many people outside on the streets,\u201d said Martha Fernanda Vildosola, a university professor from Mexicali. In a city where temperatures can reach 50C, street protests are uncommon. That day, more than 40,000 people came out in defense of their right to water, she said.<\/p>\n

The governor later reneged on the law. But it did not stop violent confrontations between the state, citizens and Constellation Brands.<\/p>\n

Our governments act in favour of the companies and put people\u2019s interests last<\/p><\/blockquote>\n

The brewery has already constructed 45% of the factory and has attempted to modify plans to show that it can be sustainable.<\/p>\n

Constellation Brand\u2019s environmental impact assessments, seen by\u00a0Di\u00e1logo Chino<\/em>, include a study on Mexicali\u2019s water supplies made by the Mexican Institute of Water Technology. It states that there is enough water to supply the brewery until 2050, with demand expected to grow 1.12% annually.<\/p>\n

However, a separate study carried out by Cortez Lara at the request of the National Council of Science and Technology (Conacyt), claims this is inaccurate and\u00a0fails to take into consideration the growth in demand as the city\u2019s population increases. Coupled with uncertain supplies, there will be a water crisis in 10 years or 15 years, Cortez Lara\u2019s study said.<\/p>\n

The brewery claims the Colorado River will not be its main water supplier. Instead, it will extract from wells it has already bought that were originally intended for agricultural use, but which it has called \u201curban wells\u201d.<\/p>\n

This categorisation enables the company to circumvent restrictions on use in the event of a drought, since under the National Water Law preferential access is granted for urban use, followed by use for agriculture, and finally, industry.<\/p>\n

A Mexican lawyer, who preferred to remain anonymous owing to the sensitivity of the case, told Di\u00e1logo Chino<\/em> this practice is illegal and is suing the company.<\/p>\n

In 2018, citizens were enraged when the company tried to build an aqueduct on residents\u2019 private property, inflaming the conflict.<\/p>\n

<\/p>\n

\"\"
A protestor opposing Constellation Brands' beer factory in Mexicali (image: Mauricio Villa)<\/figcaption><\/figure><\/p>\n

<\/div>\n

\u201cI looked at my friends covered in blood and watched the police guarding the diggers,\u201d says Diana Gabriela Arangur\u00e9, of Mexicali Resiste. \u201cIt was very clear what we\u2019d been saying all these years: our governments act in favour of the companies and put people\u2019s interests last.\u201d<\/p>\n

Demonstrators have stopped trucks travelling to the brewery, taken over the Baja California Congress several times and created their own\u00a0news website<\/a>\u00a0to raise awareness about the conflict.<\/p>\n

\u201cAt this point, street demonstrations have stopped and the opposition is waiting,\u201d explains Mauricio Villa, another Mexicali Resiste member. Opposition groups are campaigning for a\u00a0referendum<\/a>\u00a0on the project in an attempt to halt operations. They are also requesting a federal environmental impact assessment.<\/p>\n

All the while, construction continues.<\/p>\n

\u201cWe need people to go back to the streets, so they do not forget,\u201d Villa says.<\/p>\n

Exports to China<\/h2>\n

China has the largest beer market in the world. The Chinese drink 45 billion litres a year, according to 2018 figures from Euromonitor International<\/a>, a\u00a0marketing firm. The market is dominated by local beer, but beers like\u00a0Corona<\/a>\u00a0have soared in popularity in recent years.<\/p>\n

\n

170million<\/p>\n

\n
\nMexico's beer exports to China last year in litres
\n\n <\/div>\n <\/div>\n

Last year, Mexico more than doubled its beer exports to China, from 77 million litres to 170 million litres\u00a0according<\/a>\u00a0to the Beer Chamber: Brewers of Mexico. Whether or not hydric stress will permit sustainable growth is a moot point.<\/p>\n

Constellation Brands does not export to China directly. It has the rights to export only to the US. Belgium-based multinational Anheuser-Busch InBev exports Grupo Modelo\u2019s beers to other countries.<\/p>\n

However, Constellation Brands is embroiled in what has become a nationwide conflict over the environmental stresses<\/a>\u00a0created by booming<\/a> beer production in Mexico.<\/p>\n

In the last two years, four new factories have been built in the states of Chihuahua, Yucat\u00e1n and Hidalgo. Six more have plans to expand in the same area in which Constellation Brands is located.<\/p>\n

\u201cThe production of beer in Mexico is one of the most important economic activities for the country,\u201d says Ernesto Granados, an environmental researcher at the Ibero-American University.<\/p>\n

\u201cBut we are in a country where there is widespread corruption and here we see breweries as part of that corruption,\u201d says Granados.<\/p>\n

\u201cAlthough there is a lot of talk about [public] consultation, people are not included in the decision-making process and water consumption is not transparent, so that generates serious problems.\u201d<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

US company Constellation Brands has been constructing a giant brewery in northern Mexico for over two years. It resembles the site of a massive music festival. The ring-fenced property, which sprawls across more than\u00a0350 hectares, could become one of Mexico\u2019s largest breweries \u2013 if residents of the nearby city of Mexicali do not derail it. […]<\/p>\n","protected":false},"author":3250,"featured_media":50026659,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[50039903],"tags":[13887,544,607],"hashtags":[],"country":[50002597],"class_list":["post-50026683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-water","tag-conflict","tag-finance","tag-water-scarcity","country-mexico"],"acf":[],"yoast_head":"\nWater or beer? | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Exports of beer from the Mexican state of Baja California have risen sharply as climate change exacerbates brewing resource conflicts\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dialogue.earth\/en\/water\/26653-water-or-beer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Water or beer?\" \/>\n<meta property=\"og:description\" content=\"US company Constellation Brands has been constructing a giant brewery in northern Mexico for over two years. 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