Heineken and Coca-Cola Brazil have reached a new cooperation intention. The purpose is to reorganize local distribution partnerships.
This cooperation will start in mid-2021 and run until the end of 2026. The validity period is five years, and the contract is automatically renewed.
The purpose is to introduce a broader range of products to the market. And provide consumers with better services.
Heineken and Amstel will jointly form the Heineken Brazil distribution network. Coca-Cola Brazil continues to serve Caesars, Bavaria, and Sol. At the same time, it took over Eisenbahn and other brands.
Among the products of Heineken, Coca-Cola Brazil can produce and distribute alcoholic beverages.
Heineken can develop more market opportunities in the field of non-alcoholic beverages.
The general manager of Heineken Brazil said.
“Through the cooperation with Coca-Cola Brazil, we will have two powerful distribution systems. We can promote a broader product portfolio. We can also better serve our consumers and customers.”
Moreover, both parties agreed to end the existing litigation between each other. These lawsuits about distribution agreements started as early as 2017. At that time, Heineken acquired Kirin’s Brazilian business for 665 million euros. It is planned to end the cooperation with Coca-Cola FEMSA in Brazil.
But the two sides ended this dispute in 2019. Approved Brazil’s Coca-Cola to distribute beverages produced by Cervejaria Kaiser. It is valid until 2022.
Besides, Heineken plans to invest US$183 million. They are used to expand their brewery in Punta Grossa, Brazil.
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