No one hurt by earthquake at CCU’s plants

In Chile, CCU operates two breweries and a beer bottling plant, a soft drink plant, two mineral water bottling plants and eight wineries. In neighbouring Argentina it has three breweries.

The company says that its soft drink plant suffered minor damage and after a thorough clean-up continues to operate without problems. CCU’s pisco business was not damaged and has been continuously in operation.

There were no mayor damages to seven of CCU’s wineries. Only the winery

Isla de Maipo registered major destruction. For the time being, bottling operations will be transferred to the other wineries. That means that CCU can carry out the 2010 vintage, which is currently being harvested, without obstruction. However, CCU reckons it lost about 9.4 million liters of bulk wine. It is still counting the losses in bottled wine.

CCU’s logistics operations are functioning to various degrees, depending on the

location with respect to the earthquake’s epicentre. Operations are hampered by

damaged roads and highways, limitations in the sale of fuel, lack of security in certain distribution zones, interrupted communications and lack of electricity.

The company has insurance policies which adequately cover the damages

and losses caused by the earthquake (ie fixed assets, inventories and business

disruption among others).

Fortunately, no one was killed or badly hurt at any plant or distribution centre.

CCU is a diversified beverage company operating principally in Chile and Argentina. CCU is the largest Chilean brewer with a market share of 85 percent (2009). It has licensing agreements with Heineken, Anheuser-Busch, PepsiCo, Paulaner Brauerei, Schweppes, Guinness and Nestlé. Brewer Heineken has an indirect 33 percent stake in CCU.