Narco Cerveza: Cartel Influence on the Mexican Craft Beverage Industry

Spring break, happy hour and…the Mexican mafia?  Liquor and beer in Mexico have not been immune from the world of the drug traffickers. The distribution of Malverde Pilsner, the showcasing of El Chapo 701 Lager, and the extortion of beer and tequila companies demonstrate how cartels have insinuated themselves into Mexico’s artisanal beverage world. At first glance, such influence appears separate from a drug trafficking enterprise’s core activities. Each of these forays into a trendy niche market, however, dovetails with the enduring interests of the cartels.

Narcocultura: Saints, Songs, and Sips

Mexican cartels have long participated in, and contributed to, a pop subculture celebrating the lifestyle of drug trafficking.[1] Through the adoption of religious figures and the composing of songs, cartels have co-opted aspects of civil society to legitimize their illicit and violent activities. Social media of members celebrate their criminal exploits and illicitly gained possessions while regularly featuring religious idols that they believe gives them protection; the posts are often set to songs with lyrics glorifying crime.

Part of narcocultura (narco culture) is the unofficial patron saint of narcotics traffickers, Jesús Malverde. Images and statuettes of him are often included on drug runs and in other criminal acts for luck. Some cartel members have built shrines to him and many narcocorridos (drug ballads) were written in his honor.  In keeping with his notoriety, Minerva Brewing in Guadalajara released Malverde Pilsner just as the Mexican cartel wars were intensifying. The image of Malverde is included on the bottle’s green label.[2] The brewery’s marketing director explained that the company wanted a graphic representation of the local folklore as way to stand out. “Looking at all the possibilities, we found that Malverde was recognized the most in this section of the country,” he said.[3] Although first released in 2007 amid controversy, the beer remains on the market today and is listed on the popular beer rating app, Untappd.

The Drug Lord’s Lager

Though not a patron saint of drug traffickers, Joaquín “El Chapo” Guzmán is one of Mexico’s most well-known drug kingpins. El Chapo led the Sinaloa cartel until his arrest in 2017. As one of the world’s most powerful cartel leaders, he was responsible for overseeing a global network that produced, smuggled, and distributed marijuana, heroin, methamphetamine, and cocaine. His daring escapes from prisons along with his investments in communities throughout Sinaloa gave him a Robin Hood persona in parts of Mexican society.

To capitalize on this persona, El Chapo’s daughter launched a beer at a Guadalajara trade fair shortly after her father’s 2019 conviction in the US. The beer was part of a line of merchandise branded “El Chapo 701,” a nod to when Forbes named El Chapo the 701st richest person in the world in 2009.[4] His daughter, Alejandrina, explained that she developed the beer as a tribute to her father.[5] To produce El Chapo Mexican Lager, she partnered with La Chingonería, a Mexico City-based craft brewery; the beer included the face of El Chapo on the label. But, after a wait of several months, Mexico’s liquor licensing authority prohibited the beer’s production, sale, and distribution.[6]

Although Alejandrina’s efforts failed, they still demonstrate the attractiveness of narco culture in parts of Mexican society. The beer’s marketing director tacitly acknowledged narco culture’s appeal. When asked about possibly changing the name of the beer to something not associated with the drug trafficker, she argued “I don’t know if removing the label even when the beer is good will sell. But obviously the brand gives it a sales boost.”[7] On one hand, Alejandrina may have been attempting to profit from her father’s infamy by further embedding his legacy into a trendy market. On the other hand, she may have been seeking to “beerwash” her father’s reputation for criminality and extreme violence. She may have found limited success. One visitor at the beer’s launch said, “I see no bad in this, I think it’s fine,” when questioned about the brand’s link to the notorious cartel leader.[8]

Shaking Down Distilleries

Recently, Mexican authorities arrested the town of Tequila’s mayor and other city officials for extorting local distilleries and breweries.[9] Among the accusations in the indictment were the mayor’s administration imposing a property tax up to 20 times the legal rate and a fine of more than 60 million pesos ($3.45 million) on one distillery. The mayor also withheld permits and sought to shutter, mid-production, a major Jose Cuervo tequila distillery to pressure the company to pay. The mayor was also accused of using the local Museum of Tequila as his private residence. More ominously, authorities allege that the mayor’s network was also diverting public (and the extorted) funds in collaboration with the Cártel Jalisco Nueva Generación (CJNG). The mayor himself had previously drawn scrutiny after he insisted on projecting images of the then cartel’s fugitive leader, Nemesio “El Mencho” Oseguera, at a local concert.

According to prosecutors, ten companies were victims but only the makers of Jose Cuervo were named publicly. Nonetheless, one of the prosecutors stated that the extortion ring began with smaller distilleries and breweries in the municipality then gradually worked its way up to Jose Cuervo.[10] Demonstrating the extent of city government’s participation in the extortion and corruption schemes, several municipal workers and seven police officers did not return to work after the mayor’s arrest. Their whereabouts remain unknown.[11]

The mayor’s collusion with the cartels to extort money from beverage companies reveals the extent of organized crime’s desire to penetrate the legal economy. In many ways, it resembles a typical protection racket that organized crime has long run against legitimate businesses. In Mexico, cartels have been known to place pressure on Mexico’s avocado production sector with similar schemes. Threatening to shutter Jose Cuervo’s distilling plant mid-production, however, came with greater potential for destruction and death. Without proper care, distilling equipment—especially stills and storage tanks—would have been in jeopardy of catching fire and potentially exploding. Not only would a fire or explosion have seriously damaged the facility and significantly delayed future production, but the surrounding neighborhood would have also been in jeopardy of harm. Such potential for damage and injury made the threats to comply with demanded taxes and fees more frightening.

Brewing Trouble

Beer branding with nods to narcotrafficking and protection schemes targeting alcohol makers are parts of the cartel ecosystem. Branding with narco saints and cartel leaders lends legitimacy to the drug trade and thereby allows narcotraffickers to operate more freely. Instead of being judged as criminals, they are viewed as brands that are part of an everyday, expanding craft beverage market. Meanwhile, cartels see producers of these beverages as targets for earning more illicit funds from an important part of Mexico’s legal economy.

These episodes may also be viewed as a prelude to future cartel influence on Mexico’s craft beverage industry. Producers may use other parts of narco culture to market artisanal beverages. More brands with references to narco saints or drug traffickers could be attractive to marketing directors of beer or spirits manufacturers. With the recent death of El Mencho at the hands of the Mexican government and the mayor of Tequila having previously used the drug leader’s image at a concert, El Mencho may be ripe for branding. Family members of drug traffickers, or the traffickers themselves, may invest in the industry to launder money, or their reputations. Cartels may target other important parts of craft beverage operations for extortion. Instead of focusing on the final stages of beverage production, criminals might place pressure on access to key elements in the making of these kinds of beverages. Whether grain, agave, yeast or hops, producers need ingredients to ferment their drinks. Criminals might also seek to interrupt the supply of barrels, bottles, cans, kegs and production equipment to extort producers. A particular vulnerability in the logistics of this industry is transportation. Getting ingredients to fermenting facilities and then distributing the final products to wholesalers and consumers require vehicles for hauling. Transportation to and from breweries and distilleries is a sensitive point where criminals can induce maximum pain.

Cartels may also engage in large scale theft of craft beer and spirits to earn profits. A black market for selling these popular beverages to bars, restaurants and stores may already exist in Mexico. Recently, the United States Department of Justice, successfully prosecuted the ringleader a major beer theft enterprise operating in the Northeast.[12]

With the growth and popularity of craft beverages, more attention needs to be placed on the industry for possible exploitation in the future. Law enforcement, government officials, scholars and even industry watchdogs should be on the lookout for the ever-evolving ways that the industry may be swept up into the world of cartels.

Endnotes

[1] See John P. Sullivan, “Criminal Insurgency: Narcocultura, Social Banditry, and Information Operations.” Small Wars Journal. 3 December 2012, https://archive.smallwarsjournal.com/jrnl/art/criminal-insurgency-narcocultura-social-banditry-and-information-operations.

[2] E. Edward Castillo, “Mexican Company Launches Beer in honor of Unofficial Drug Saint.” Arizona Daily Star. 13 December 2007, https://tucson.com/news/article_06b9887f-446b-57f0-9045-aea5a5686341.html.

[3] Ibid.

[4] Jose Luis Osorio, “Drink like a Mexican kingpin: ‘El Chapo’ beer launched by daughter.” Reuters. 17 January 2020, https://www.reuters.com/article/lifestyle/drink-like-a-mexican-kingpin-el-chapo-beer-launched-by-daughter-idUSKBN1ZG04Y/.

[5] Isis Sauceda, “El Chapo se pasa al alcohol: su hija lanza una bebida con el nombre del narco.” People en Español. 17 January 2020, https://peopleenespanol.com/noticias/mexico/el-chapo-se-pasa-al-alcohol-su-hija-lanza-una-bebida-con-el-nombre-del-narco/?utm_source=chatgpt.com.

[6] “El IMPI negó a hija del “Chapo” Guzmán registrar una marca para vender bebidas alcohólicas.” Infobae. 18 November 2021, https://www.infobae.com/america/mexico/2021/11/19/el-impi-nego-a-hija-del-chapo-guzman-registrar-una-marca-para-vender-bebidas-alcoholicas/?utm_source=chatgpt.com.

[7] Op. cit., “El Chapo se pasa al alcohol: su hija lanza una bebida con el nombre del narco” at Note 4.

[8] Ed Vulliamy, “Branded beer and baseball caps as drug lord El Chapo’s family cash in.” The Guardian. 20 January 2020, https://www.theguardian.com/world/2020/jan/19/call-time-on-el-chapo-profiteering-family-drug-trafficking-cartel-mexico.

[9] “Mexico arrests mayor of Tequila for extorting distillers in alleged cartel scheme.” Reuters. 5 February 2026, https://www.reuters.com/business/retail-consumer/mexico-arrests-mayor-tequila-extorting-distillers-alleged-cartel-scheme-2026-02-05/.

[10] Amy Stillman, Maya Averbuch, and Vallentine Hilaire, “El estaao Mexicano de Jalisco invierte millones en la capital del tequila tras escándalo de extorsión.” Bloomberg Linea. 14 February 2026, https://www.bloomberglinea.com/latinoamerica/mexico/el-estado-mexicano-de-jalisco-invierte-millones-en-la-capital-del-tequila-tras-escandalo-de-extorsion/?utm.

[11] “Así operaba la policía de Tequila con el alcalde Diego Rivera.” Informador.mx. 11 February 2026, https://www.informador.mx/jalisco/tequila-asi-operaba-la-policia-del-municipio-con-el-alcalde-diego-rivera-navarro-ultimos-detalles-20260211-0071.htm[1]l.

[12] “Jose Cesari, Leader Of Sophisticated Armed Beer Theft Enterprise, Sentenced To 63 Months In Prison.” Press Release, United States Department of Justice, Southern District of New York. 18 December 2025, https://www.justice.gov/usao-sdny/pr/jose-cesari-leader-sophisticated-armed-beer-theft-enterprise-sentenced-63-months.

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