Mexico City, Jan. 11 - Mexico's leading brewer Modelo, the maker of Corona beer, said Thursday it raised local beer prices by 3.5-4.0 percent on average, but does not plan to hike prices for exports, which go mainly to the United States.
The domestic price increase was not uniform among Modelo's brands or throughout the country. "It is not the same increase everywhere," an official told Reuters.
The hike, implemented in December, came as the government was trying to keep a lid on spiraling inflation. Mexico's leading retailers agreed to cut prices on 300 household goods from Thursday until the end of March.
Modelo's share price, already higher in a wider market rebound, gained further on news of the price increase. Its stock was up 2.21 percent at 52.64 pesos.
Modelo, half-owned by U.S. beer giant Anheuser-Busch Inc and which also produces Negra Modelo, Pacifico and Montejo beers, has a long-held policy of annually raising its domestic beer prices broadly in line with inflation.
"Basically the prices were raised in line with inflation for 2007, which is between 3.5 and 4.0 percent, more or less," the official said.
Mexican inflation came in at 3.76 percent in 2007, within the central bank's target range.
Modelo, whose beer exports go to more than 150 countries but mainly to the United States, is not planning to raise export prices this year.
"For the moment, we are not expecting price increases for international markets in 2008," the company official said.
Mexico's central bank says 2008 inflation could be slightly above its 4 percent target rate due to higher food prices and a fuel tax hike that started January 1.
Mexican President Felipe Calderon vowed this week to act if his government notices unwarranted price increases after the gasoline and diesel fuel hikes.
Prices for staples like corn tortilla pancakes and other consumer goods have seen spikes in recent days as businesses try to cover higher transport costs.
Local brewing rival Femsa said in late December it was raising its beer prices in line with the projected 2008 inflation rate to offset rising raw material costs.
Femsa said its price increase was being implemented by region, channel, brand and package and its weighted average will be equivalent to the expected general inflation for 2008.
Femsa, which produces Sol, Dos Equis, Bohemia, Tecate and Carta Blanca, said its price rises would be fully implemented from January. The company blamed rising grain and aluminum costs on world markets for the increases.