Argentina: Brewer’s merger to transform Argentina beer market

Last week saw the successful closure of the merger between leading brewers SAB Miller and AB InBev, worth over $100 billion. The merger has rippled across the world, creating a giant company controlling one third of the world’s beer – and rattling Argentina’s domestic beer market.

SABMiller Argentina currently holds under 4% of the market, with the Isenbeck brand representing over half the company’s sales. The company has said the brand will be sold off to accommodate competition concerns, with the most likely buyer being local beer behemoth Quilmes – which controls 75% of the domestic market already. Quilmes has already moved to secure authorization from competition regulator CNDC to acquire Isenbeck, thus solidifying Quilmes’ grip on the local market.

Another issue raised by the merger involves the future of the Molson Coors brand, the sixth-best seller in the world. The brand has so far stayed out of the Argentine market, but recent upheavals have seemingly changed their strategy, as the company has recently launched a search for a “country manager” to handle a potential launch.

Full Content: La Nación

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