Heineken and Coca-Cola distributors to enter into arbitration

Heineken and the Brazilian Coke distributors will begin arbitration in February 2018 regarding a distribution contract that the Dutch brewer decided to terminate as of 1 November 2017. The contract was to run until 2022, according to Brazilian media.

Heineken broke off the contract in July this year after acquiring the Brazilian operations of Japan’s brewer Kirin in February for USD 1.21 billion, thus bolstering its own distribution network in the country.

According to media reports, Heineken suggested that the Coke distributors keep their contract for two beer brands, Bavaria and Kaiser, until 2022, but an association of distributors rejected the proposal.