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BRAZIL: AmBev waits on green light to sell Cintra brands

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AmBev is looking to sell the Cintra beer brands it acquired late last year, even if the company gets clearance to keep them.

The South American unit of InBev acquired the family-owned company's brewing facilities last year, and was given first refusal on Cintra's beer brands, if a buyer for them was not found by October. Speaking to just-drinks last week, AmBev's zone president for Latin America North, Luiz Fernando Edmond, said that the company is waiting on anti-trust authority clearance on the brands.

"To integrate, we need the authorities' approval," Edmond said. "We don't have that yet. It should last another three or four months.

"If we have the opportunity to sell the brand, we will probably sell. We understand that the strategic value of the brand for us is small, though the product may be reasonable. The fight to keep the brand is not necessarily a profitable fight at the end. We need the capacity, so we will keep the breweries. But the brand is not that relevant."

AmBev agreed to buy Cintra's two breweries in Rio de Janeiro and Sao Paulo for US$150m in March last year, although the deal did not include the Cintra brand nor the brewer's distribution network. The purchase of the Cintra brand cost AmBev a pre-agreed amount of $10m.

Cintra accounts for around 1.12% market share in Brazil, with AmBev holding about 68%.


Sectors: Beer & cider

Companies: Anheuser-Busch InBev

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