Coca-Cola Femsa Keeps Heineken Beer Distribution Contracts In Brazil

Coca-Cola Femsa SAB de CV and Heineken NV have announced the end of an arbitration on contracts of beer distribution in Brazil favourable to Femsa.

Both companies said that beverages produced by Cervejaria Kaiser, acquired by Heineken in 2010, will continue to be distributed by Coca Cola bottlers in Brazil through 2022.

Two Separate Distribution Networks

With the arbitration decision, Heineken will have to keep two separate distribution networks for its beers in Brazil, the Kaiser system and one it purchased from Kirin Holdings Co in 2017.

The Dutch company initiated an arbitration two years ago seeking to end the contracts sooner to unify its distribution.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.