Brazil: Shincariol group acquires Portuguese beer brand Cintra

26 May 2008

Sao Paulo, Brazil, 26 May – Brazilian group Schincariol has acquired the brand and non-manufacturing assets of Portuguese beer Cintra, in Brazil, for 39 million reais, the Brazilian press reported Friday

The deal included the sale of the brand, the distribution network, formulas and materials at points of sale that belonged to Companhia de Bebidas das Américas (Ambev), according to financial newspaper Valor Económico.

These assets were acquired by Ambev, in November of last year, for US$10 million,, but the deal was not approved by the competition authorities.

The two Cintra factories, in the states of Rio de Janeiro and Sao Paulo, acquired in Marach of last year, for US$150 million, will remain in Ambev’s hands.

The sale of the assets to Brazilian group Schinacariol follows a ruling by the competition authority, CADE, a body linked to the Ministry of Justice.

According to the ruling, announced in January of this year, Ambev was authorised to buy the factories, but would have to sell the brand and distribution network that belonged to the Portuguese group.

Schincariol is the second largest beer group in Brazil, after Ambev and has a 13 percent share of the Brazilian drinks market.

AmBev, which was set up in 1999, is currently the largest private consumer goods company in Brazil, with a 68 percent share of the market, and the largest beer maker in Latin America, with a presence in 14 countries.

The Cintra distribution network includes 100,000 points, in the states of Espírito Santo, Rio de Janeiro, Minas Gerais and Sao Paulo, in the southeast, and in Mato Grosso do Sul, in the central-west region. (macauhub)