PARAGUAY – Chilean drinks company Compañía Cervecerías Unidas (CCU) has signed binding agreements to merge its Paraguayan drinks business, Bebidas del Paraguay, with that of Asunción-based conglomerate Grupo Vierci.
The newly combined entity, called BDP, will become one of Paraguay’s largest food and beverage companies, managing over 30 brands across 10 categories, including Pepsi, 7Up, Red Bull, Heineken, Amstel, Doritos, and Quaker.
Under the terms of the merger, CCU will hold a 51% stake in both Grupo Vierci’s PepsiCo distribution business, AV, and its existing Paraguayan operations, Bebidas del Paraguay and Distribuidora del Paraguay.
Grupo Vierci will hold the remaining 49% stakes in all three firms.
As part of this merger, CCU has acquired the rights to distribute PepsiCo drinks and snacks in Paraguay, adding to its existing PepsiCo license in Chile.
In a statement, CCU highlighted its commitment to “continue growing and investing in Paraguay, supplying quality products” and “contributing to the development and generation of employment.”
Grupo Vierci also expressed optimism, stating that BDP is well-positioned to serve Paraguay’s evolving food and beverage market.
CCU recently reported a 3 percent year-on-year decrease in third-quarter net sales to 665.82 billion pesos (US$11.35B), or a 6.9 percent decline on an organic basis, while EBIT dropped 34.2 percent to 33.63 billion pesos (US$573.7M).
Despite these figures, net income more than tripled to reach 29.55 billion pesos (US$1.45B), and sales volumes rose 5.7% to 7.99 billion hectoliters.
CCU credited growth in its Chilean and wine segments but noted weaker demand in Argentina as a significant challenge to its international business segment.
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