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Dispute Begins Between Beverage Giants Coca Cola and Heineken with Ambev – The Largest Producers of Alcoholic and Non-Alcoholic Beverages in the World
After reaching an agreement with Heineken to produce and distribute alcoholic beverages, Coca-Cola Femsa, one of the largest bottlers in Latin America, purchased the Brazilian bottler CVI Refrigerantes, an operation that will allow it to control 52% of the total volume of the Coca-Cola System in Brazil. The deal occurred months after the agreement with Heineken to reshape its distribution network, which analysts say put multinational Ambev, the largest beverage company in the world, in a tight spot.
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“The agreement, valued at R$632.5 million (approximately US$111 million), involves bottling and distribution operations in Rio Grande do Sul with a capacity of 30.9 million units of boxes, excluding beer,” said Coca-Cola Femsa in a statement.
This transaction “represents an additional step in our strategy to continue exploring profitable opportunities for inorganic growth,” said John Santa Maria, CEO of Coca-Cola Femsa.
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‘Interlocking brick’ made of earth arrives in the construction industry with cost reductions of up to 40% on the project.
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Espírito Santo will receive the largest engineering project in its history with the duplication of BR 262, which will have 50 viaducts, 28 bridges, and 2-kilometer tunnels cutting through the most challenging mountainous region of the entire state.
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A project of nearly 9 million reais already has the first kilometer paved in Santa Catarina and promises to completely transform the access between Jaraguá do Sul and Rio dos Cedros in an area where tourism is growing at a rapid pace.
The agreement is still subject to approval by the authorities and the usual closing conditions.
The acquisition has been considered “very discreet” by Marco Antonio Montañez, an analyst at Vector in a note about the announcement, since it represents less than 1% of Coca-Cola Femsa’s consolidated volumes.
“Although this is another step to consolidate the Coca-Cola bottling system in Brazil, we see a neutral effect on the assessment and short-term stock prices in the station,” Montañez wrote in the note.
Brazil Represented, in 2020, 26% of Coca-Cola’s Total Volumes
The Brazilian market accounted for 26% of Coca-Cola Femsa’s total volumes in 2020, according to its annual report.
This is Coca-Cola Femsa’s third move in Brazil in the last six months, amid a strategy to expand its capabilities and distribution portfolio, after renewing its cooperation structure with The Coca-Cola Company and establishing a new distribution agreement with Heineken in Brazil.
Recently, the renewed agreement between Coca-Cola Femsa and Heineken for the distribution of beer products in Brazil came into effect, ending a dispute between the companies related to previous distribution agreements.
The agreement, in which The Coca-Cola Company also participates, allows the Coca-Cola System in Brazil to produce and distribute alcoholic beverages and other beers in a certain proportion to Heineken’s portfolio. Heineken will be able to explore new opportunities in the alcoholic beverage segment.
Dispute Begins Between Beverage Giants Coca Cola and Ambev in the Brazilian Market!
Coca Cola, the non-alcoholic beverage market giant, decided to enter the beer market and bought the famous brewery producing premium beers, Therezópolis. Additionally, it also established an agreement with the brewery Estrella Galicia to distribute its products in the country. The news stirred the market, and experts say the dispute between Coca Cola and Ambev is going to intensify!
Coca-Cola FEMSA and Andina — owners of more than half of the Coca-Cola volume in Brazil — will use Therezópolis to reposition themselves in the beer market.
The transaction initiates a dispute between beverage giants Coca Cola and Ambev in the Brazilian market, currently divided among Ambev, Heineken, and Petrópolis, marking the first time that The Coca-Cola Company has authorized manufacturers to acquire a beer brand.
Therezópolis has 8 premium beer labels such as Gold, Rubine, and Ebenholz. The company was founded in 1912 in the city of Teresópolis, Rio de Janeiro, and was reopened in 2016 after closing in 1922. The brewery is a premium craft brand with a small market share and high value perception: a bottle costs R$ 12.90 at retail.
For Analysts, the Agreement Means More Competition Among Giants Ambev, Coca Cola, and Heineken
In analysts’ views, Ambev’s competitive advantages would diminish with the agreement.
There is no doubt that competition should increase with the Heineken Group better resolved in its distribution chain.
Regarding the increased competition, Ambev feels it is still too early to comment. “From our perspective, the Brazilian market has always been competitive. This was announced yesterday and it’s still early to say the impacts. We prefer to focus on what we can control. Our distribution network has been operating very well. It is a well-oiled machine built over decades,” said Lucas Lira, financial director of the company to Estadão/Broadcast.
Coca Cola Offers Many Job Openings for Elementary, High School, Technical, and Higher Education Levels
The global giant of non-alcoholic beverages, Coca Cola, started the week calling on professionals with elementary, high school, technical, and higher education qualifications for many job openings in its factories and distribution centers spread across SP, MG, SC, and more Brazilian states. There are positions for drivers, technicians, engineers, and more. See below all the positions requested and how to submit your resume.
Those interested in applying for job openings at Coca Cola, the multinational’s largest producer of non-alcoholic beverages in Brazil, should click on the desired position above or send their resume at this link. Good luck!
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