30 July, 2003

Fomento Economico Mexicano SA (Femsa), the Mexican drinks group, is considering purchasing the rights to certain secondary brands belonging to Quilmes, the Argentinean brewer, according to a report of Femsa. "We're looking at that as one of the possibilities," said the company's financial chief, Federico Reyes. Any purchase by Femsa would be the Mexican company's first international beer acquisition.

Among the brands up for sale are the Bieckert and Palermo brands, as well as the licence to produce Imperial. The regulator also said a brewery in Buenos Aires which produces Ambev's Brahma brand must be sold in addition to a malt plant also in Buenos Aires.

“The approval of the merger between Quilmes and the Brazilian drinks group, Ambev, by the Argentinean anti-trust regulator was conditional on Quilmes disposing of certain brands,” said the report. Quilmes and Ambev's combined share of the Argentinean beer market of around 81%, while the brands earmarked for disposal have a combined 12% market share.

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