AmBev Peru is to launch a new beer in Peru that will bring competition to a market so far dominated by the monopoly of Union de Cervecerias Peruanas Backus & Johnston SAA, or Backus.

Local press has reported that the beer will launch in mid-May. Promotional activities for the brand include sponsorship of local events and a competition to guess the name of the band, which is still a secret.

Meanwhile, Bavaria according to a Dow Jones report, is preparing an aggressive fight back against the AmBev launch.

The marketing campaign will including lower beer prices, the report said.

Bavaria's investor relations chief, Carlos German Quintero, told Dow Jones Newswires that cost cutting could lower prices from between 5% to 15% depending on the brand and the market segment of the beer.