Taking full possession

With many Latin American countries enjoying an economic recovery, the synergies from the alliance of operations between Quinsa and AmBev (part of InBev) have become apparent from Quinsa’s latest financial reports. Most recently, AmBev increased its ownership of Quinsa to 91 percent, an acquisition involving about USD 1.2 billion, and now effectively controls the company. Analysts at the investment bank Zacks believe that, ultimately, public shareholders will be bought out.

The final share purchase by AmBev represents the last step of the strategic alliance which started between AmBev and Quinsa in May 2002 when AmBev bought 36.09 percent of the stock of the Argentinean company.

Quilmes Industrial S.A (Quinsa), the brewer that is leader in Argentina, Uruguay, Paraguay, Bolivia and participates in the Chilean market, is also the biggest bottler of Pepsi in Argentina and Uruguay.

Continuing with the momentum observed in 2004, Quinsa reported robust results in 2005 and the trend is expected to continue. Argentina, Bolivia, Paraguay, Uruguay, and Chile all witnessed strong volume growth. In 2005, beer volumes increased 7.1 percent year-on-year with all operating markets contributing. Soft drink volumes were also strong, increasing 26.0 percent, reflecting accelerating growth in Argentina and regained momentum in Uruguay. Starting in 2004, Quinsa bolstered its position in the Argentinean premium beer market with the flagship brand, Quilmes Cristal and the re-launch of the Iguana brand. In Argentina, Quinsa enjoys a market share of 78 percent and a per capita consumption of 32 litres. Stella Artois (locally brewed) was introduced in November 2004 and continues to add to volume growth.