Heineken and FEMSA end spat and redesign distribution partnership

Brazil | It is just a reshuffle of brand between two systems, but a milestone for Heineken. The Dutch brewer has wanted for years to terminate its distribution contract with Coca-Cola FEMSA, in order to expand its Brazilian distribution network which acquired from Kirin in 2017. FEMSA disagreed and the two were forced to enter into arbitration.

Now the two have reached an agreement, a move that clears a significant legal hurdle for the Dutch brewer’s expansion in the South American nation, where it is competing fiercely against national rival AmBev/AB-InBev.

According to the terms of the deal, Heineken will begin to distribute its eponymous Heineken and Amstel beer brands via its own distribution channels, while the FEMSA network will continue distributing the Kaiser, Bavaria and Sol brands.

The financial terms of the deal were not revealed.

The parties have agreed to an initial term until 31 December 2026, with automatic renewal for another five-year term. The Agreement is subject to customary regulatory approvals. As part of the Agreement, the parties will end the existing litigation between them relating to the previous distribution agreements.