FEMSA's history began in 1890 with the founding of the brewery CerveceraCuauhtmoc in Monterrey, N.L.

, thanks to a group of enthusiastic entrepreneurs led by Isaac Garza, Jos Caldern, Jos A. Muguerza, Francisco G. Sada, and Joseph M. Schnaider. Under the trade name of Fbrica de Cerveza y Hielo Cuauhtmoc, the company started out with just 70 workers, 2 administrative employees, and 100,000 pesos' capital. The offices were located in a grocery store known as Casa Caldern on Padre Mier and Galeana streets. The plant was built on the site on which today's plant stands. The first brand of beer to be marketed was Carta Blanca, followed by Saturno, which was withdrawn from the market after just a short time, and then disappeared. Carta Blanca in a transparent bottle with a wire-reinforced cork became the company's leading-edge beer and one of the best selling brands in Mexico, a position which it still retains today. In 1892 Cervecera Cuauhtmoc began the first of a long list of innovations, replacing the casks originally used for storing bottles with wooden crates that made transportation easier. That same year the offices were moved to the plant. The launching of the first draft beer in 1893, called Cuauhtmoc, was so successful that draft beer production became a permanent aspect of the brewery's activities. Carta Blanca obtained The Gold Medal in Chicago, the first such award conferred on a Mexican beer. On October 20th, 1899, Fbrica de Vidrios y Cristales was founded to provide an internal supply of glass bottles. It employed expert glass blowers from abroad, but technical difficulties and high costs soon resulted in its temporary closure. In 1900 numerous famous people, such as General Bernardo Reyes, the governor of the state of Nuevo Len at the time, visited the Brewery. Then in 1904, metal bottle caps replaced the reinforced corks that had been used previously. Cuauhtmoc was the first brewery to adopt this change which facilitated bottling and was more convenient for the consumer. In the year 1905 The Bohemia brand was officially registered. The quality and special characteristics of this beer have made it one of the brewery's most famous brands and a favorite with connoisseurs. Incredibly in 1908, HM Alfonso XIII, King of Spain, named Cervecera Cuauhtmoc as the official supplier of the royal household, entitling the brewery to use the Spanish Coat of Arms on its labels and stationery.

The production of glass bottles was revived with the founding of Vidriera Monterrey in 1909 which supplied all the glass bottles needed for the production of the beer. The Cuauhtmoc Polytechnic School was initiated in 1911 to teach primary school, art, trades, high school and commerce. It also provided training for workers in electricity, fermentation, physics and chemistry. In 1917 Eugenio Garza Sada joined the company as an assistant in the statistics department and later became the head of Cervecera Cuauhtmoc. At this time he defined one of the basic points of the company's philosophy, "People are more important than any economic consideration." On March 30th,1918 the group incorporated the Sociedad Cooperativa de Ahorros e Inversiones para los Empleados y Operarios de la Cervecera Cuauhtmoc S.A. [Savings and Investment Union for the Cuauhtmoc Brewery's Employees and Workers], (known today as SCyF), in order to promote the integral development of the brewery's workers and their families. Its original objective was to provide them with groceries to improve their standard of living, as well as medical services, a savings bank, discounts, sports, courses and scholarships, among many other benefits. In 1921Fbricas Monterrey, S.A. de C.V. (FAMOSA), which was originally one of the brewery's internal departments, became an independent company and was installed opposite the plant. This fabric, FAMOSA, began producing crown caps and then expanded its production to metal containers. Then in 1923 a new process for the beer was discovered, the use of carbon dioxide gas helped to perfect the service of providing consumers with draft beer, a real success. Also in 1926 Logistic department decided a new delivery process, glass bottles were packed in corrugated cardboard cases instead of wooden boxes, which was cheaper and with almost the same safety. In 1929 a retail supply company (Compaa Comercial Distribuidora) was incorporated. By the year 1930, the replacement of the original wooden casks used for storing draft beer by metal cylinders made it possible to pasteurize this kind of beer, giving the consumer a better product and completely eliminating carbon dioxide leaks. Cervecera Cuauhtmoc began exporting its products officially and systematically. Titn S.A. was established as an independent company with an initial capital of 750,000 pesos and 180 employees and workers in the year of 1936. The company expanded its operations until it produced all kinds of cardboard packaging. Titn had originally been a department of the company Fbricas Monterrey that only produced corrugated cardboard boxes.

In that same year some big events happened, first, Malta S.A. was created to supply the brewery with malt, an essential raw material in beer production. And second, Valores Industriales S.A., the holding company for the Cuauhtmoc concerns, was founded. Then the savings bank changed its name from Sociedad Cooperativa de Ahorros e Inversiones para los Empleados y Operarios de la Cervecera Cuauhtmoc, S.A., to Sociedad Cuauhtmoc y Famosa (SCyF). Also during this decade, the Carta Blanca oval was first introduced as the brand's logo. Almacenes y Silos was founded in response to the need for warehouses to store the Cuauhtmoc Brewery's products as Cervecera Cuauhtmoc celebrated its 50th anniversary in 1940 In 1943 Hojalata y Lmina (HYLSA) came into being, with 179 employees and workers, and 3 million pesos' capital. HYLSA was founded to produce sheet steel, an essential raw material for bottle caps, because during the Second World War it was impossible to import this product. It is said that at first the steel produced was of such poor quality that the brewery could not use it for bottle caps. Nevertheless, over time HYLSA became one of Mexico's most important companies, renowned for the quality of its products and its technological development. As a motivation for the employees performance the Sociedad Cuauhtmoc y Famosa clinic was inaugurated in 1945 to provide free medical care for the company's employees and workers at a time when the Mexican Social Security Institute had still not come into existence. An innovation happened in 1948, crushed ice was first used at points of sale in order to offer consumers cold beer, it was a huge success. This year marked the introduction of "Transparmbar," the transparent amber glass bottle to protect the beer from the adverse effects of light. It is well-known that a good acquisition can benefit a business a lot, so in 1954 Cervecera Cuauhtmoc acquired a plant in Tecate, Baja California Norte, which manufactured a regional brand called Tecate. The brewery took this brand and launched it nationwide as the first canned beer in Mexico. By the year 1957 Grafo Regia, an internal department of Cervecera Cuauhtmoc, started operations as an independent label plant. Its activities later expanded to include all kinds of flexible packaging. During this decade, the President of Mexico, Adolfo Ruiz Cortines, inaugurated the Cuauhtmoc neighborhood in Monterrey with 1,318 houses for the Group's

employees and workers. This was another social benefit offered ahead of the times, before the creation of the Mexican federal housing development institute, Infonavit. In the year 1960 there was an implementation in the product design: Cervecera Cuauhtmoc launched the one-liter bottle presentation known as "Caguama," offering the consumer economic advantages and convenience. Another improvement in the design of the product was made in 1964, ring-pull cans were introduced, giving consumers yet another advantage by eliminating the need for can openers. Also in 1967 as an improvement I the design Cervecera Cuauhtmoc introduced the screw-top bottle. The thread on the bottleneck made it possible for the consumer to open the bottle manually, without a bottle opener. A bottle with a specially designed screw-top opener on the bottom was launched to make it even easier to open bottles in 1969. That same year, Cervecera Cuauhtmoc built a plant in Toluca, Mexico, which was the most modern and advanced beer plant in Latin America at the time and is still highly competitive. In 1971 Logistics department decided to introduce Lightweight plastic boxes to transport bottles more safely. In the year of 1973 Mexican baseball authorities conceded the lifetime venue of the Hall of Fame to the brewery to honor those men who dedicated their lives to "the king of sports." The Hall of Fame is located in the gardens of the Monterrey brewery. Additional halls dedicated to other sports have since been included. This worked as a way to attract more clients to the factory and therefore to the beer.. On November 7, 1977 the Museum of Monterrey was opened in an old section inside the brewery's main building where the first brewing kettles used to operate. The museum was founded with the purpose of contributing to the dissemination of all types of art, in particular painting and sculpture. This also attracted more people to the factory. In this same year the two-piece can was first produced and used. This kind of can prevents leaks and improves the product's quality. As in business there are successes there are also failures and unfortunately in 1979 Cervecera Cuauhtmoc launched the first Mexican light lager beer, Brisa. This brand was really ahead of the times and was not a success, being withdrawn from the market a few years later.

In 1980 it happened another improvement in the logistics of the delivery of the product, the "Beer Drive" system was introduced to improve the distribution of draft beer to consumption centers by using refrigerated tanker trucks. Cerveza Conmemorativa [Commemorative Beer] made its first appearance in 1983, starting an annual Christmas time tradition. The brand was taken off the general market a few years later. By that year the screw-top presentation of Tecate was launched, representing an additional option for consumers A new era of the Mexican beer industry began with the historical merger of the Cuauhtmoc and Moctezuma Breweries in 1985. The resulting synergies made it possible to offer consumers more and superior alternatives, to maintain the leading position in the domestic market, and to reinforce competitiveness in the international marketplace, with the addition of the prestigious brands XX Lager, Superior, Sol and Noche Buena to Cervecera Cuauhtmoc's portfolio. In 1988, after restructuring the company's debt, FEMSA (Fomento Econmico Mexicano, S.A. de C.V.), the main subsidiary of VISA, was constituted, bringing together the beer, packaging, soft-drink and retail companies. In the year 1989 celebrations began for Cervecera Cuauhtmoc's first centennial with internal activities and nationwide festivities which included the whole of the community. To mark the beginning of a whole year of celebrations, a commemorative logo and slogan were launched: "One Hundred Years are a Good Start." The brewery's new graphic identity was introduced I 1990, bringing together the images of the two Aztec emperors after whom Cervecera Cuauhtmoc Moctezuma is named. In the year 1991 two big evets happened, first Cuauhtmoc Moctezuma opened one of the most modern beer plants in the world in Navojoa, thus optimizing supply to the northeastern region of Mexico and to foreign markets. The plant was able to report an unprecedented fivefold increase in production just two years after its opening. And then following its tradition as an innovative leader and to meet the demands of the consumer, the brewery launched the Tecate 12-pack presentation, XX Lager in a can, and Tecate Light in both cans and bottles. During this same decade, the Sol brand conquered the European market. Cervecera Cuauhtmoc Moctezuma reaffirmed its vocation for international trade by exporting its products to more than 55 countries, some of which were traditionally beer-drinking nations, such as England and Germany.

The partnership with John Labatt Limited, a renowned Canadian brewery, was consolidated in 1994 with the acquisition of 30% of the Cervecera Cuauhtmoc Moctezuma stock by the Canadian brewery. The presentation of Carta Blanca was changed during this decade. The new image and quality received the "Monde Selection" prize and certification in Paris, France. Tecate celebrated its first 50 years by becoming the number-one imported canned beer in the USA, a position it still boasts today. In 2000 the subsidiary, Corrugados Tehuacn, a cardboard box factory, was sold to Willamete Industries. The mayor event during 2004 was the repurchase of FEMSA Cerveza's 30% share. This operation prepared FEMSA Cerveza to take control on the import, marketing and distribution of its brands in the USA, at the same time that allowed the company to explore strategic alternatives for this market. In Juneof this same year, a commercial agreement was signed with Heineken to commercialize Cerveceras beer brands in the United States. Under the terms and conditions of this agreement, Heineken USA takes responsibility for the promotion, selling and distribution of the following brands: Tecate, Dos Equis, Sol, Carta Blanca, and Bohemia among US Territory, starting January 1st, 2005. Also Cervecera Cuauhtmoc Moctezuma and Coors Brewing Company announced a 10-year agreement, which grants the brewery to be the exclusive seller of Coors Light in Mexico. With this agreement both parties take advantage of a business opportunity to complement their principal strategies. In September 2005, a national sales, marketing, and distribution agreement was executed with Sleeman Breweries, a leading nationwide premium Canadian brewer. Effective January 1, 2006, this agreement offers significant growth opportunities for our Sol and Dos Equis brands across the Canadian market. In October 2005, a new sales, marketing, and distribution agreement was settled with Molson Coors to serve the UK-our second most important export market after the United States. At the end of October in the city of Puebla, with a US$40 million dollar investment, FEMSA Cerveza inaugurates the greatest malting facility in Mexico and one of the greatest in the world, fortifying the national productive chain of the Mexican malting industry. These operations will benefit more than 12,000 agriculturists and its families, in the states of Puebla, Tlaxcala, Mexico, Hidalgo and Bajo, by assuring them a barley consumption of more than 250,000 tons per year and making use of 80.500 hectares of crops, which will represent an economic impact superior to $500 million pesos.

In November, Cervecera Cuauhtmoc Moctezuma gave 87 certificates to the first generation of waiters and barmen who became qualified in courses of "El Mesero Responsable" (Responsible Waiter), distributed in September and October. This course is an educational program looking to create conscience between waiters and barmen about the importance of contributing in the effort to promote responsible lifestyles and healthy life with approach in the moderate and responsible consumption of alcohol. At the end of November, FEMSA obtained the Prize to " Ethical and Values in the Industry ", granted by the Mexican Chamber of Industry (CONCAMIN). This prize recognizes the Best Practices of ethics in businesses, promotion and experience of corporative values and social responsibility of all the companies that operate in Mexico. In 2006 FEMSA Cerveza acquires controlling stake in Brazilian Brewer Kaiser, by acquiring ownership of 68% of the equity of Kaiser, for US$68 million. FEMSA now becomes the only brewer with meaningful operations in both Mexico and Brazil, two of the world's most attractive beer markets. On March 2008, for the fourth consecutive year, FEMSA and its strategic business units: Coca-Cola FEMSA, FEMSA Comercio, FEMSA Empaques and FEMSA Logstica were recognized with the Socially Responsible Company (ESR) Award given by CEMEFI. Cervecera Cuauhtmoc Moctezuma also achieved this recognition for the second time. With this award we reinforce our commitment with the community, our collaborators and the environment. On November this year, FEMSA is included on the list of the 10 best employers of Mexico, by receiving the Best Employers Mexico 20072008 Award. The recognition was given by Hewitt Associates, the internationally distinguished human resources company. On November 14th 2008, Fundacin FEMSA was established as an instrument that supports the education, science and technology for the conservation and sustainable use of water and the promotion of healthy living in our community. On September 2009, FEMSA launched Imbera, company that produces commercial freezers creating a new standard in the industry, due they use state of the art technology developed by the company, which generates the highest operating efficiency and the lowest energy consumption in this kind of machines worldwide. On November 16th 2009, FEMSA Foundation and the Inter-American Development Bank (IDB), made the first edition of the Water & Sanitation Prize for Latin-America and the Caribbean, contest that emphasizes in the innovations of water management, sanitation and solid wastes handling.

In this year FEMSA Foundation jointly with the government of Costa Rica, the private sector and academic sector, signed an alliance for the creation of the first Center for Water Resources in Central-America and the Caribbean. On april 30, 2010, FEMSA announced the closing of the transaction pursuant to which FEMSA agreed to exchange 100% of its beer operations for a 20% econocmic interest in the Heineken Group, through this transaction we will increase our scale and geographic reach competing effectively. FEMSA, the leading integrated beverage company in Latin America, won for the fifth time to the Ethics and Values in the industry Prize in its category, awarded by the Confederation of Industrial Chambers of Mexico (CONCAMIN).

Conclusion
I learned that if we want to have an international company with an excellent performance, we never have to rest, and we have to always be improving our methods and our processes, make surveys and look what the people wants for us to produce it, analyze the ways to produce the most value for the company, Im from those ones that thinks that is better to have quality over price, but if you have both of them you become a really valuable company. It is very interesting the way Cervecera has changed the design of their products and also the way they created different companies to supply themselves the raw material they needed, and that even though those companies they created to supply themselves today have become highly competitive companies. I also think that Cervecera boosted the technological and economical growth of Monterrey and also Mexico, but that it fulfilled the original purpose of its creators to make money, and I think that that is the goal of many companies to be highly profitable, and Cervecera Cuauhtmoc definitely achieved it.