The Brazil-based drinks group, AmBev, is set to extend its influence further in Latin America with the agreement of a distribution alliance with the regional Pepsi bottler, Central American Bottling Corporation (CabCorp).

The joint venture distribution company will distribute AmBev's beer brands in Central America and the Caribbean which remain undeveloped markets for the Brazilian company. CabCorp operates in Guatemala, Honduras, El Salvador and Nicaragua.

"The new company will strengthen CabCorp in the competitive Central American drinks market and provide AmBev a quick and low risk way in to the beer industry of the region," AmBev said. AmBev already has strong links with PepsiCo. It bottles and distributes Pepsi beverage brands in Brazil while PepsiCo has agreed to market the Brazilian company's soft drinks brand, Guarana, globally.

The formation of the alliance with CabCorp will see AmBev further strengthen its position in the Latin American drinks market. In addition to holding around two thirds of the Brazilian beer market, the company, the world's fifth largest beer group, also owns breweries in Uruguay, Paraguay and Venezuela. If the company's pending deal with Quilmes is approved, AmBev will also have a sizeable presence in Argentina.