Coca-Cola System Brazil to produce alcoholic beverages in new partnership with Heineken

BRAZIL – The Coca-Cola system in Brazil will produce and distribute alcoholic beverages beers in HEINEKEN’s portfolio as from Mid-2021.

This is part of a recent redesign of a longstanding distribution partnership between Heineken, The Coca-Cola Company, and the Coca-Cola system in Brazil.

Heineken in a statement said that the Agreement marks a new milestone in the relationship among the companies.

The agreement, according to the brewing major, allows the parties to better serve consumers and customers in the Brazilian market with a solid portfolio, building on the positive momentum developed over many years of successful collaboration.

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“I am very pleased to redefine our distribution partnership with the Coca-Cola System in Brazil. Through a dual route to market, we will be able to reach and better serve our consumers and customers with our broad portfolio, leveraging two strong distribution systems,” says Mauricio Giamellaro, Managing Director Heineken Brazil.

As per the Agreement, expected to become effective mid-2021, the parties will begin a smooth transition of the Heineken® and Amstel brands to Heineken Brazil’s distribution network.

The Coca-Cola System in Brazil will continue to offer Kaiser, Bavaria and Sol, and will complement this portfolio with premium brand Eisenbahn and other international brands.

“I am very pleased to redefine our distribution partnership with the Coca-Cola System in Brazil. Through a dual route to market, we will be able to reach and better serve our consumers and customers with our broad portfolio, leveraging two strong distribution systems.”

auricio Giamellaro, Managing Director Heineken Brazil

Additionally, as part of the redesign of the distribution partnership, Heineken will be able to explore further opportunities in the non-alcoholic segment.

This new agreement is positive news not only for the parties involved but for also for the Brazilian clients and consumers as well.

The companies had existing litigation between them relating to the previous distribution agreements which affected their ability to better serve their customers.

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As part of the Agreement, the parties have agreed to end the existing litigation between them and in its place agreed to an initial term until December 31, 2026 with automatic renewal for another 5-year term subject to the terms of the Agreement.

“Our companies have a long partnership history in Brazil, and we are pleased to reach a new agreement that will serve consumers for many years to come,” said Luis Felipe Avella, President Coca-Cola Brazil & South Cone Operations.

CCEP raises take over bid for Coca-Cola Amatil to US$7.7 billion

Meanwhile in Europe, Coca-Cola European Partners has raised its takeover offer bid for Coca-Cola Amatil by around 6% to A$9.93 billion ($7.70 billion) as global trading conditions improve.

Coca-Cola European Partners (CCEP) PLC is now offering A$13.5 per share, a hike from A$12.75 a share it offered in October.

 Coca-Cola Amatil, the Australian bottler for Coca-Cola said it backs the new final offer, which would be Australia’s biggest deal this year.

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