AmBev acquires beverage production assets in Peru

Brazil?s leading beverage company Companhia de Bebidas das Americas ? AmBev has acquired Embotelladora Rivera?s beverage production assets in Peru, for an undisclosed amount. The deal closed on October 31.

This transaction granted AmBev PepsiCo?s franchise agreement for Northern Peru and Lima. Such franchise for the Southern Peru region and Bolivia remains in the leading Peruvian brewer and beverage company Cervecerías Unidas Backus & Johnston.

The Brazilian acquisition was conducted through AmBev?s local subsidiary Compañía Cervecera Ambev Perú S.A.C. The buyer acquired all of Embotelladora Rivera?s carbonated soft drinks (CSD) production assets, including a plant in the Northern Peru region, which combined have a production capacity of 6.3 million hectoliters per year, plus sales and distribution assets such as bottles, crates and freezers in Lima.

The deal included a sales and distribution agreement for a two-year initial term, under which Embotelladora Rivera will distribute AmBev and PepsiCo?s CSDs in the Northern Peru region, allowing AmBev to benefit from Rivera´s extensive distribution network covering over 140,000 points-of-sale. This structure should enable AmBev to exploit Rivera´s distribution expertise in the Peruvian market, yielding very favorable and rapid results in the future launch of its beer operations by reducing significantly its time-to-market in the beer industry.

Based in Brazil, AmBev is the largest beverage company in Latin America and the sixth largest beverage company in the world. It has one of the largest product portfolios in the beverage industry, including beer, CSDs, isotonic drinks, water and tea. Besides Brazil, the company has also a presence in Argentina, Venezuela, Uruguay, Paraguay, Bolivia, Colombia, Chile, USA, UK, France, Germany, Italy, Portugal, Spain, Switzerland, Japan and Angola. This is the company?s first venture in Peru.

The buyer was advised in Peru by partners Ismael Noya and Jorge Ossio, and associates Rafael Picasso, Eduardo Barboza and Mónica Llosa of Estudio Echecopar.

Embotelladora Rivera was advised in Peru by partners Albert Forsyth and Cesar Arbe of Muñiz, Forsyth, Ramírez, Pérez-Taiman & Luna-Victoria Asociados.

PepsiCo Inc. was advised in Peru by Víctor M. Marroquin, Alejandro Alfageme Rodríguez Larraín and Guillermo Castañeda Echegaray, from elaw Peru.

In Brazil, AmBev was advised in-house by Angela Antonioli Pegas.