ARGENTINA: Quilmes invests in Mendoza operations

By just-drinks.com editorial team | 2 March 2006

Quilmes International is planning to invest US$20m over the next three years to boost capacity and launch a bottling line at its soft drinks plant in Mendoza, Argentina.

Quilmes, which holds the PepsiCo franchise in Argentina and Uruguay, said US$10m would go toward building the bottling line, while the rest of the cash would be used to expand its beer and mineral water plants in Mendoza.

"In this way, the company will be present in Mendoza with its three businesses: beer, water and soft drinks," Quilmes' majority shareholder, the Luxembourg-based holding company Quinsa, said.

Quilmes executives met with Mendoza governor Julio Cobos earlier this week. According to provincial government data, the investment in the PepsiCo bottling line will create 100 new jobs.

Quilmes has a 78.6% market share of Argentina's beer market and a 19.6% share of the local soft drink market.

Earlier this week, Quilmes reported rising beer and soft drink volumes across its key markets during 2005.

Quilmes, which dominates beer markets in Argentina, Bolivia, Paraguay and Uruguay, yesterday (27 February) posted a 25% leap in revenues to US$954.3m. Gross profit for the full year was US$550.1m, a leap of 33%.

Sectors: Beer & cider, Soft drinks, Water