VENEZUELA: AmBev to merge with Cerveceria Regional
AmBev merges with Cerveceria Regional in Venezuela
AmBev is to merge its beer business in Venezuela with the country's second largest brewer, Cerveceria Regional, in order to mount a stronger challenge to market leader Empresas Polar.
Brazil-based AmBev said at the end of last week that it will merge its Venezuela operations with Cerveceria Regional, which is owned by the Cisneros family. AmBev will take an initial 15% stake in the merged entity but has the option of raising this to a maximum of 20% over the next four years.
The Anheuser-Busch InBev-controlled brewer did not disclose financial details of the deal.
Its move will provide stiffer competition to Venezuela's beer market leader, Empresas Polar-controlled Cerveceria Polar. It also lands AmBev a greater share of one of Latin America's biggest beer-consuming nations.
"The transaction will also create a number of opportunities to leverage both companies’ complementary geographic footprint in the country and to share best practices," said AmBev.
Cerveceria Regional has around a 30% share of Venezuela's beer sales by volume, but Polar dominates the market and has stretched its lead recently, according to local reports. "Empresas Polar has been increasing its market share with a dynamic strategy in terms of marketing activities and the launch of new products," said market research group Euromonitor in a market review published in June this year.
"We are looking forward to working with the Regional team to build on the combined brand portfolios of Regional Light, Brahma and Zulia and bring further innovation to the Venezuelan beer market”, said Ricardo Moreira,
AmBev’s vice-president for Hispanic Latin America.
The deal is expected to be complete later this year.
There are sound reasons behind Anheuser-Busch InBev's foray into the cider market with Stella Cidre, but the brand needs to be clear about what it's trying to do if it's going to survive as a latecome...
- What's coming up in beer in 2017? - Comment
- Chile's winemakers caught out by Brexit "disease"
- What's coming up in spirits in 2017? - Comment
- Interview - Pernod Ricard's luxury director
- The just-drinks Analyst - 2017 forecasts
- Suntory sends staff to fat camp - report
- A-B InBev acquires Spain's Cervezas La Virgen
- Diageo closes spirits e-commerce portal in UK
- Former Stoli Group CEO joins Perfect Vodka owner
- Pernod Ricard's Absolut Lime - NPD
- Global vodka insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Global gin insights - market forecasts, product innovation and consumer trends
- Opportunities in Craft Spirits