The Brazil-based drinks group, AmBev, and the soft drinks producer, Central American Bottling Corporation (CabCorp), have announced that they have completed the formation of an alliance which will jointly explore expansion possibilities for both companies in the Central American and Caribbean markets. The two companies announced plans to form an alliance in September.

The joint venture is intended to allow the companies to combine AmBev's production, marketing and sales know-how in the beer segment with CabCorp's distribution efficiency and knowledge of the Central American drinks market. CabCorp operates in Guatemala, Honduras, El Salvador and Nicaragua. The alliance is expected to enhance CabCorp's position in the region while giving AmBev a low-risk entry into the area.