Vitro secures $950m contract from Constellation Brands

18 August 2014 (Last Updated August 18th, 2014 06:30)

Mexico-based glass manufacturer Vitro has received a new contract from its client Constellation Brands to produce 7.3 billion beer bottles.

Mexico-based glass manufacturer Vitro has received a new contract from its client Constellation Brands to produce 7.3 billion beer bottles.

During the seven-year life of the contract, the estimated sales transaction is valued at $950m.

The deal is expected to triple the present volume of Vitro's production for the beer market.

As part of this latest development, Vitro plans to construct a new furnace at its Monterrey facility with an investment of around $100m.

Vitro CEO Adrián Sada Cueva said: "The new furnace will be built using our own technology, developed by Fabricación de Máquinas, and will begin operations within 18 months.

"We are satisfied to see that our relationship is now expanding to the beer market."

"During that time, we will manufacture in Toluca and Querétaro to meet these new commitments; both sites will continue producing for Constellation Brands once the new Monterrey furnace starts working."

Vitro Soda-Lime Glass Containers vice-president Jesús Zubiría Luque said: "We thank our partners for their confidence in Vitro.

"We are satisfied to see that our relationship is now expanding to the beer market."

Vitro, which has subsidiaries in the Americas, provides solutions for different markets, such as food, beverage, wine, liquor, beer, cosmetic and pharmaceutical.

The company produces glass containers and flat glass.

With operations in the US, Canada, Mexico, New Zealand and Italy, Constellation Brands produces and markets beer, wine and spirits.