Vina Concha y Toro is to acquire 40% of Chilean brewer Cerveceria Kross for an undisclosed sum.
//i4.aroq.com/1/concha-y-toro.jpgThe company said today (2 February) that it will acquire the stake from Kross general manager José Tomás Infante, who founded the brewer in 2003. The move marks the Casillero del Diablo wine producer's first foray into beer.
Financial details behind the Kross deal have not been disclosed.
"Since its beginnings, the Concha y Toro subsidiary, Comercial Peumo, has believed in our brand and helped us with the distribution of our niche beers in Chile, achieving a very successful sales performance and the construction of the brand nationwide," said Infante.
He said that the tie-up will help Kross' portfolio of five beers to increase their market share in Chile. "In addition, the alliance provides us with the possibility of placing our brand in foreign markets, given the solid commercial platform of Viña Concha y Toro worldwide," he added.
Concha y Toro said that Kross has shown strong sales growth in Chile's premium beer market. "This segment is one having the greatest growth potential in the domestic market, very much in line with international consumer trends," said the general manager of Comercial Peumo, Cristián Canevaro.
The Kross brewery lies in the valley of Curacaví, with an annual capacity of 1.8m litres. Chile's beer sector is dominated by Compania Cervecerias Unidas, which is 33%-owned by Heineken.
Sectors: Beer & cider, Mergers & acquisitions
Companies: Concha y Toro, Compania Cervecerias Unidas SA, Heineken
