AmBev foresees expansion and does not rule out acquisitions
Valor Econômico
AmBev, Latin America's biggest beer producer, is optimistic about 2010 because of the accelerating of the growth of the Brazilian economy and of the FIFA Soccer World Cup, to take place in June and July in South Africa. "The World Cup allows us to have a summer month during the winter because of the growth of sales", said the Financial Officer of the company, Nelson Jamel, referring to the consumption of the fans during the broadcast of the matches. The speed with which Brazil has recovered from the world financial crisis and the increase of the disposable income have also contributed to increase the sales of beer and soft drinks, he said. Jamel, who became Financial Officer of the Brazilian unit of Anheuser-Busch InBev in February, said the only risk he sees for next year is the possibility of the Brazilian Government's increasing the taxes on the beverages. So far, AmBev intends to increase the prices according to inflation next year, he said.
The company continues with an eye on acquisition opportunities and it is centered in Latin America, according to Jamel. He said the company has no concrete purchase targets at the moment. In March, AmBev paid US$ 27 million for Bebidas y Aguas Gaseosas Ooccidente, a PepsiCo bottler in Bolivia. "We are always with an eye on major markets in Latin America and we may eventually discuss an acquisition", said Jamel. "If we think about Latin America, Mexico is one of the few major markets in which we are not present. There is no specific plan for Mexico, but we are always analyzing something".
The brewery is increasing its investments. Last month, it announced it will invest between R$ 1.3 billion (US$ 755.8 million) and R$ 1.5 billion (US$ 872.1 million) in Brazil, to increase its productive capacity. The new funds represent an increase between 30% and 50% compared to the previously expected amounts.