Starts dispute between the giants Coca Cola and Heineken with Ambev - the largest producers of alcoholic and non-alcoholic beverages in the world
After signing an agreement with Heineken to produce and distribute alcoholic beverages, Coca-Cola Femsa, one of the largest bottlers in Latin America, bought 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. Deal took place months after the agreement with Heineken to remodel its distribution network which, according to analysts, put the multinational Ambev, the largest beverage company in the world, in a tight fight.
Read also
- Gold mine in the middle of the hinterland: Canadian South Atlantic Gold invests R$ 13 million in Ceará and the State may have the first commercial exploitation of the ore in history
- Investments of BRL 1,2 billion by construction companies Bild and Vitta will generate almost 10 direct and indirect job openings in the construction industry in Uberlândia, MG
- Helpers, Bricklayers, Mechanics, Electricians, Technicians, Designers, Analysts and more job vacancies to work in industrial and building maintenance works in SP and MG
- Abu Dhabi Crown Prince's Mubadala Sovereign Fund Eyes Eike Batista's Empire Collapsing
- Petrobras calls this morning (17/12) for 757 higher-level vacancies and offers a minimum initial remuneration of R$ 11.716,82
“The agreement, valued at R$632,5 million (approximately US$111 million), considers bottling and distribution operations in Rio Grande do Sul with a capacity of 30,9 million units of cases, not including beer,” said Coca-Cola. Cola Femsa in a statement.
This transaction “represents a further step in our strategy to continue to explore profitable inorganic growth opportunities,” said John Santa Maria, CEO of Coca-Cola Femsa.
The deal is still subject to approval by the authorities and fulfillment of customary closing conditions.
The acquisition was considered “very discreet” by Marco Antonio Montañez, Vector analyst in a note about the announcement, since it represents less than 1% of the consolidated volumes of Coca-Cola Femsa.
“While this is another step towards consolidating Coca-Cola's bottling system in Brazil, we see a neutral effect on valuation and short-term stock price at the station,” Montañez wrote in the note.
Brazil represented, in 2020, 26% of the total volumes of Coca-Cola
The Brazilian market accounted for 26% of Coca-Cola Femsa's total volumes in 2020, according to its annual report.
This is the third movement of Coca-Cola Femsa in Brazil in the last six months, in the midst of a strategy to expand its capabilities and distribution portfolio, after renewing its cooperation structure with The Coca-Cola Company and establishing a new agreement of distribution with Heineken in Brazil.
Recently, the renewed agreement between Coca-Cola Femsa and Heineken for the distribution of beer products in Brazil came into force, which ended 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 of Heineken's portfolio. Heineken will be able to explore new opportunities in the alcoholic beverages segment.
Starts dispute between the giant beverage producers Coca Cola and Ambev in the Brazilian market!
Coca Cola, the giant in the non-alcoholic beverage market, decided to enter the beer market and bought the famous brewery that produces premium beers Therezópolis. In addition, it also established an agreement with the Estrella Galicia brewery to distribute its products in the country. The news shook the market and, according to experts, the dispute between Coca Cola and Ambev will intensify!
Coca-Cola FEMSA and Andina — owners of more than half of the volume of Coca-Cola in Brazil — will use Therezópolis to position themselves again in the beer market.
The transaction starts a dispute between the giant beverage producers Coca Cola and Ambev in the Brazilian market, currently divided between Ambev, Heineken and Petrópolis, and marks the first time that the Coca-Cola Company authorizes manufacturers to acquire a beer brand.
Therezópolis has 8 premium beer labels such as Gold, Rubine and Ebenholz. The company was founded in 1912 with headquarters in the city of Teresópolis, in 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 perception of value: a bottle costs BRL 12,90 at retail.
For analysts, the agreement means more competition between the giants Ambev, Coca Cola and Heineken
In the analysts' view, Ambev's competitive advantages would diminish with the hit.
There is no doubt that competition will increase with the Heineken Group better resolved in its distribution chain.
About the increase in competition, Ambev thinks it is too early to comment. “From our point of view, the Brazilian market has always been competitive. This was announced yesterday and it is still too early to say the impacts. We prefer to look at what we control. Our distribution network has operated very well. It is a well-oiled machine created over decades,” Lucas Lira, CFO of the company, told Estadão/Broadcast. company.
Coca Cola offers many elementary, middle, technical and higher level job openings
The global giant of non-alcoholic drinks Coca Cola started the week calling professionals from elementary, middle, technical and higher education, for many job openings in its factories and distribution centers spread across SP, MG, SC and other Brazilian states. There are openings for drivers, technicians, engineers and more. See below all the positions called and how to register your resume.
Those interested in applying for jobs at Coca Cola, the largest multinational producer of non-alcoholic beverages in Brazil, should click on the desired position above or send their resume this link. Good Luck!
