31 October, 2019

Brazil: Coca-Cola Femsa and Heineken announce end of distribution arbitration in Brazil

Coca-Cola Femsa SAB de CV and Heineken NV announced late on October 31 the end of an arbitration on contracts of beer distribution in Brazil favorable to Femsa, Reuters reported.

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

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.

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