First, can you please give us an idea of the sort of work your team has done recently?

In the last two years the team has been working hard to maintain our license to operate, which was jeopardised due to the Covid-19 crisis. In April 2020, the beer industry was shut down because Mexico’s federal health authority did not consider our industry as essential. However, after a few weeks of extremely complicated work, we were able to lift the restrictions and successfully defended our operations going forward, and have reached historical volumes and market share since then. Moreover, we used the opportunity to strengthen our commitment to Mexico and strengthened our reputation with stakeholders, including consumers, governmental authorities, and the general public.

The pandemic accelerated Grupo Modelo’s transformation process. We converted the crisis into an opportunity and the legal team played a key role.

We are particularly proud of our role in projects to support our communities in dire times. Our legal and corporate affairs team led–and closed–the negotiation, and obtained the necessary permits, for the construction of two hospitals built and donated by Grupo Modelo to the Mexican government to take care of Covid-19 patients. These hospitals were built in record time and were instrumental in saving numerous lives during the most difficult times.

Which recent political, economic or regulatory changes have impacted the company and the team the most?

Last year Mexico approved a major labour reform that heavily restricted outsourcing and provided a very short time for complying with the law, which includes substantial sanctions. As consequence, we modified our corporate structure of more than 80 corporations in a very short timeframe, which was an extremely demanding task. As part of this corporate reorganisation, we renegotiated contracts with key suppliers and vendors to guarantee compliance–on both our side and theirs–with the new regulations.

Also, we are seeing a trend for approving eco-taxes at state level. As a leader in sustainability within our industry, we commend any effort to protect the environment and promote sustainable practices. However, some of these states pretend to use the eco-tax revenues to support the government operating expenses, and not to protect the ecosystem at all. When such eco-taxes are conspicuously inconsistent with their claimed intent, we are challenging them before the courts.

In what ways do you see the in-house legal role evolving in your region over the next few years?

Legal teams will play a crucial role in the transformation of businesses. Digitalisation will be fast and profound, so experience in legal fields such as data privacy, fintech and money regulations will be necessary for every in-house legal team. Additionally, as companies migrate to more sustainable business models, legal teams will be required to deepen their knowledge on ESG matters and their legal implications. Our teams, more than ever, are expected to be trusted advisors to boards and senior management and, in many cases, interpreters of stakeholders’ voices and expectations.