Colombia: Beer market shows growth and upheavals

A 10% increase in sales by volume in last year’s beer market has raised the hopes of Colombian brewers, both incumbents and new competitors seeking to get a foothold in the country.

Market leader Bavaria, part of the SABMiller group (and bought by riva AB Inbev last year) currently dominates 98% of the market. The new year brings new challenges, however, as the brewer will now face stiff competition from a joint venture between Molson Coors and Postobon, which signed an agreement on Jan. 7th to sell and produce the Coors brand of beer alongside Chile’s Compañía Cervecerías Unidas (CCU).

While the world’s beer industry has gradually consolidated over the past two decade, AB Inbev’s purchase of SABMiller has drastically changed the scene for Colombia’s national industry, particularly for the Bavaria group. Due to regulatory limits and competition concerns, the company is expected to divest important brands and assets, including their ownership of the Miller brand, sold last November to Molson Coors.

Full content: Dinero.com

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