Cervecería Austral, the Chilean beer producer, intends to concentrate on its home market and diminish its activity in Argentina, as a result of that country’s recent economic crisis. The company will temporarily suspend its operations in southern Argentina, however it will still maintain its presence in Tierra del Fuego market. Cervecería Austral said it would recommence its operations in Argentina as soon as the country’s economic situation improves.

Company’s General Manager John Kimber related: "We became uncompetitive.Products in Argentina are selling for around a third of their value." Austral, which is owned by Chilean brewing giant CCU and the Chadwick family, hopes to reach a 15% share of Chile’s premium market in 2003, equivalent to sales of 70,000 hectolitres.

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