Curious Castro ally
Today's news brings an extremely odd statement from the president of the Mexican Council on Foreign Trade, Investment and Technology, Valentin Diez Morodo. Agencia EFE reports that in a speech, Diez Morodo advocates investment in Fidel Castro's Cuba, alluding to its tourism and biotechnology potential as worthy reasons for laying one's cash down there. He also says that Mexican businessmen are skittish about investing in Castro's Communist paradise because of their own misplaced fears of sanctions from their bigger markets (meaning the U.S.) which have strong penalities in place for companies that do business in Cuba using U.S. citizens' Communist—confiscated properties. As blather, that's annoying enough.
But there's a disturbing aspect, because trade council president is not his only hat. The article neglects to mention it, but Diez Morodo also is a member of the board of directors of Mexico's Grupo Modelo, better known as the producer of Corona beer. Until last June, he held one of the most powerful positions in the company, and still sits on its board of directors.
Diez Morodo also is one of Mexico's most brilliant business leaders, the man who almost single—handedly figured out how to take Corona beer from a no—name brand into a household name in the U.S. He also once traced and stamped out entirely false rumors circulated by malevolent U.S. competitors that Mexican beer was somehow contaminated beer. As a brand manager, he is probably the best in the business — and someone whose talent I've admired for years.
So why would he make such disturbing and unusual statements about Cuba? Given who he is, my first thought was: 'How can he do that?' Diez Morodo is descended from the founding members of Grupo Modelo, a group of four industrious Basque families who suffered years of social isolation during most of the 20th century in socialist, anti—Franco, Mexico, due to their conservative roots, who quietly worked to build their product into one of Mexico's most respected names. They never took on debt, never got involved with government crony politics, and never asked anyone for anything. All they did was work, save, invest and build.
But Diez Morodo's a marketing man and can't stop himself, I suppose. Diez Morodo's already saturated the biggest markets out there for Corona beer, and may be looking for new ones to penetrate, in uncharted places like Cuba, which depends on a European tourist industry in part to keep it afloat. Castro's regime in Cuba otherwise produces nothing of significant value. But keeping it afloat with tourist Euros and Canadian Loonies unfortunately props up and strengthens an evil tyrannical regime.
Propping up Castro isn't good for anyone, not the U.S., not the Cubans and not the Mexicans. Not only that, given history's inevitable verdict on Castro, not very good business sense, either. The article quotes an outgoing Mexican ambassador as saying Mexican businesses are pulling out of the Communist state. The official also pointed out that from a practical perspective, when Castro falls and the market opens, Mexican businesses might not be as competitive as American business when investment rushes in.
But that's really very silly — Diez Morodo's own work belies that assertion since he himself made Corona beer the number one imported beer in the U.S., toppling mighty Heineken. Diez Morodo says he will work to persuade Mexican businesses, rightly concerned about Helms—Burton sanctions, to invest in Castro's Cuba. That's got to make Castro happy. But it certainly doesn't make me want to buy a Corona. A doggone shame.
Why is a Corona beer director seemingly shilling for Castro? Does Anheuser—Busch (the producer of Budweiser, America's number one beer), half—owner of Grupo Modelo, know about this?
A.M. Mora y Leon