Colombia: CCU and Postobon SA join forces to target the beer market
The Colombian alcoholic drinks market is set for the debut of Central Cervecera de Colombia, a new joint venture aimed at tapping demand for beers and malted drinks in the country.
According to a statement sent on Monday to the Chilean Securities and Insurance Regulator, Chile's Compania de las Cervecerias Unidas (CCU) and Postbon SA, Colombia's largest soft drinks maker, will participate 50-50 in the business with an initial investment of $400 million over the next 3-4 years.
The project includes the construction of a plant sited near Bogota which will have an initial capacity of 3 million hectolitres per year, equivalent to roughly 15% of the Colombian beer market.
The Colombian market is currently dominated by Bavaria, SABMiller’s Colombia unit which controls about 98% of the country’s beer sales, Bloomberg reports.
Miguel Fernando Escobar, CEO of Postobon, commented: “By working together with CCU we are opening up new opportunities for value creation and developing a competitive portfolio in the Colombian market. With this investment, based around an ambitious but strategic plan, we are reaffirming our commitment to our consumers, clients and colleagues as well as to the economic and social development of our country”.
Source: CCU / Bloomberg