Brazil: Heineken ends distribution agreement with Coca-Cola

Dutch brewer Heineken formalized this week its decision to dissolve the distribution agreement recently negotiated in Brazil with The Coca-Cola Company. The rupture would affect a multi-million dollar industry, eliminating an agreement meant to have lasted until 2022.

The decision comes as a result of Heineken’s purchase of Kirin Holding SA in February, making it the second largest brewer in the country. Most importantly, Kirin Holdings accounts for 2% of the soft drink market in Brazil, causing a potential conflict of interest with Coca-Cola. Heineken had stated shortly after the purchase that it would await the results of an assessment by Brazil’s competition regulator, CADE, regarding the distribution agreement.

Analysts and commentators consulted by Poder 360 expect Heineken will be forced to pay some compensation to Coca-Cola, citing multi-million dollar figures.

Full Content: Poder 360

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