BRAZIL: AmBev is Brazil`s biggest beverage company and the fifth worldwide
The company was established in July 1, 1999 by the association of the Brazilian breweries Brahma and Antarctica. The merger of the two biggest Brazilian companies within the sector was approved by the Cade (Administrative Council for Economic Defense) on March 30 of this year.
In addition to the Brazilian transactions, the AmBev is also present in Argentina and in Venezuela. During the month of September, jointly with the French company Danone, AmBev exercised the acquisition right of the second biggest beverage company of Uruguay, the Salus, in that country the leader in the mineral water and the vice-leader in beers with the Patrícia brand.
AmBev`s goal is to consolidate a meaningful participation in the South America markets. The synergy resulting from the merger of Brahma and Antarctica will enable AmBev to grow in the international market, by means of associations and partnerships for new projects
AmBev`s expansion strategy is to employ the Brazilian industrial base to move forward in the continental market. The company has 46 industrial units in 18 Brazilian States, in addition to four plants in Uruguay, in Argentina and in Venezuela. Its export operations have already opened markets in more than 25 countries and shall expand itself as the outcome of the new structure obtained from the merger. This was the main reason for Brahma and Antarctica to unite, as a way to compete in a market characterized by the formation of international blocks, such as the Mercosul and the Alca (America`s Free Trade Area), which will become reality as of 2005.
"In an economy increasingly more global the companies` biggest trump is the global presence and position. The strength of new technologies, combined with a frontierless dispute, requires, above all, scales that make possible to face the competitors` game", assesses Marcel Telles, co-chairman of AmBev`s Board of Directors.
AmBev has approximately 30 thousand shareholders. Its total assets, based on september, 2000, correspond to R$ 8,234 billion. The EBITDA, in 1999, reached R$ 974 million. Last year`s sales net revenues of the two companies totaled R$ 4.6 billion.
The operational agreement between AmBev and Pepsi Cola Co. will enable the distribution and bottling of the Guaraná Antarctica in more than 175 countries. The partnership, disclosed on October 20, 1999, will result in the internationalization of the soft drink, Coca-Cola`s strongest competitor in the Brazilian market. Currently, Guaraná Antarctica`s annual production is 800 million liters - a volume that places the soft drink among the 15 top sold in the international market.
AmBev operates with three independent distribution nets, one for each principal beer brand: Antarctica, Brahma and Skol. These three nets unite more than 700 independent companies, that compete among themselves in all the Brazilian municipalities, competing, in the most different points of sale, the consumers` preference.
|(R$ million)||1999||3rd quarter 2000|
Sales volume (million of hl)
AmBev`s Corporate Communications Adviser
Telephone nos. (5511) 3741-6363 / 3741-1333 / 37411964
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