Chile’s CCU buys Argentine brewer for USD 88 million

Consolidation in the Argentine beer market is set to continue with CCU buying Inversora Cervecera.

In October, CCU which is also Argentina’s second-largest beer producer behind Quilmes/AmBev, said in a note to Chile’s stocks and insurance regulator that the contract was signed by its Argentine subsidiary, Compania Industrial Cervecera.

The deal is subject to due diligence and approval by antitrust authorities.

CCU said Inversora Cervecera has a 5.8 percent share of Argentina’s beer market, and its brewery in Lujan has an installed capacity of 2.7 million hl beer per year.

It will be remembered that as a consequence of the merger between Quilmes and AmBev, Quilmes was obliged to sell the Lujan brewery and three brands – Palermo, Imperial and Bieckert – to a consortium headed by the Argentine entrepreneur Ernesto Gutiérrez. That was last year.

Although Quilmes did not release any figures, it was widely believed then that the consortium paid about USD 20 million for the brewery plus brands. Once upon a time, Quilmes had invested USD 150 million in the construction of the Lujan plant, which is located 70 km to the west of Buenos Aires. So much for value maintenance.

It seems like Mr Gutiérrez made a quick fortune by selling the brewery on for USD 88 million.

In Argentina, Quilmes has about 70 percent of the beer market, Germany’s Isenbeck has 6 percent, while Chile’s CCU, thanks to the transaction, has nudged up its share to 21 percent.