S AMERICA: Anheuser-Busch InBev cuts ties with CCU in Argentina, Uruguay
Anheuser-Busch brought the distribution of the three brands in-house in June
Late last week, Chilean multi-beverage firm CCU, which also operates in Argentina, Uruguay, Paraguay and Bolivia, reported half-year numbers that were boosted by one-off payments from A-B InBev. CCU noted in its results statement that Argentine unit CICSA received a compensation payment in Q2 following the termination of its importation and distribution agreement for A-B InBev's Corona and Negra Modelo brands.
The company also flagged a payment for the loss of its production and distribution rights for Budweiser in Uruguay.
Speaking to just-drinks today, a spokesperson for A-B InBev provided further details behind the moves. “Anheuser-Busch InBev reached an agreement with CCU to terminate the distribution of Corona in Argentina, as well as the distribution of Budweiser in Uruguay,” the spokesperson said.
“Closing took place on June 5 and as a result, Cervecería y Maltería Quilmes and Fabricas Nacionales de Cerveza (both A-B InBev subsidiaries) have included the Corona and Budweiser brands in their respective portfolios.”
The spokesperson said that the original agreements with CCU were set to run until the end of this year in Argentina, and to the end of 2025 in Uruguay.
“The parties believe that it was in their best interest to terminate early,” she added, but declined to detail the compensation paid.
A-B InBev took full control of Corona and Negra Modelo when it bought out the family owners of parent company Grupo Modelo last year.
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