CCU has taken a step closer to forming a new JV to brew and sell beer in Colombia

CCU has taken a step closer to forming a new JV to brew and sell beer in Colombia

Financial regulators in Colombia have waved through a deal allowing private conglomerate Postobón and Compania Cervecerias Unidas (CCU) to brew and sell Heineken's brands in the South American country, according to reports.

The deal, first announced in November, will see CCU, which is part-controlled by Heineken, operate a JV with Postobón. The JV will also produce and sell malt-based beverages and build a new 3m hectolitre capacity in Colombia. 

Reuters reported today that Colombia's financial regulator has now approved the deal and acknowledged it will increase competition in the country's beer market.

Currently Colombia's beer sector is dominated by SABMiller subsidiary Bavaria, with around 99% of volumes, according to Euromonitor. Beer per capita consumption in the country is around 48 litres.

Postobón, Colombia's biggest soft drinks maker, has a distribution network that reaches around 490,000 customers across the country, according to the company.