RiskTech Forum

Grupo Modelo: Brewing Up Process Change

Posted: 1 February 2015  |  Source: Grupo Modelo

A consistent brewing process helps make Corona one of the best-selling beers worldwide. As the flagship brand for Grupo Modelo, the company’s top-selling US import, and the fourth most popular beer in the world, Corona is exported to more than 180 countries. Its vast distribution is due in no small part to the fact that beer enthusiasts around the globe know exactly what they’ll experience each time they crack open a bottle, popping the cap off that familiar, clear glass longneck.

That same familiarity and consistency is found in other popular Modelo brands, including Negra Modelo and Pacifico, which helps explain why Modelo, headquartered in Mexico City, is the largest brewer and distributor in Mexico, with roughly 60% market share in 2011. But consistency is just one small part of Modelo’s overall recipe for success. The business model the company follows includes holding the entire organization to the same lofty standards it demands of its products.

So when Modelo decided to undertake an ambitious project to become a process-oriented organization, a key objective was to make sure the business processes and rules were consistent company-wide. Standardizing organizational processes across nearly 100 different business units (including breweries, convenience stores, and distribution centers located mostly in Mexico) would give the brewer far greater insight into its operations. However, the endeavor would certainly bring forth some challenges specifically related to risk management, so the business had to craft a bigger vision for how it would drive governance, risk, and compliance (GRC) consistency throughout the organizational and process changes, as well as moving forward.

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