Argentina: AB InBev’s Quilmes brewery to invest 26.9 bln pesos in expansion over the next five years

Brewery Cerveceía y Maltería Quilmes — controlled by Leuven, Belgium-based Anheuser-Busch InBev — on August 23 told President Mauricio Macri that it will invest 26.9 billion pesos (1.9 billion dollars) over the next five years in Argentina, Buenos Aires Herald reported.

Quilmes’ representatives explained the investment will go to expand its factories, the installation of a dealcoholizing plant, a new line of barrels and the expansion of its agricultural business for the production of barley and hops.

Another huge bet will entail the expansion of the brewing plant the company has in Acheral, in the northern province of Tucumán, where it will invest 650 million pesos to double the output of bottled products and beer and soft drinks output for the domestic and foreign markets. Inauguration of the plant is scheduled for the coming weeks. As a first step it will mean 500 new direct or indirect jobs.

Meeting with Macri at the Pink House were Carlos Alberto Sicupira, one of the biggest shareholders of AB InBev, Marcio Froes, president of Cervecería y Maltería Quilmes Latinoamérica Sur, and Pablo Querol, vice-president of Corporate and Legal Affairs of Cervecería y Maltería Quilmes.

Also present were Production Minister Francisco Cabrera, Horacio Reyser, the presidential adviser on Foreign Investment, and Juan Procaccini, Executive President of the International Investments and Trade Argentine Agency.

“Quilmes will continue to bet strongly on the country, making investments both in infrastructure in our brewing and soft drinks plants and the launching of new products to the market. Also, we will continue to invest in the returnable glass bottles to increasingly consolidate a sustainable and environmental commitment,” Froes said after the meeting.

The company plans to invest over 7.3 billion pesos in returnable bottles over the next five years.

Querol, for his part, said: “Aware as we are of our role as the Argentine market’s leading company, we are committed to the task of promoting socially healthy behaviour as well as promoting healthier habits. During this period we will continue strengthening these commitments for responsible consumption of alcoholic beverages, and through the promotion of returnable bottles, which are fundamental for the sustainability of the beer business in Argentina.”

Quilmes said that the investments will be channelled to modernize the 11 beer and soft drink plants it has in Argentina, as well as to improve logistics and environmental systems. Also included in the plan are Research and Development initiatives for new barley varieties and innovations and the launching of new products “to satisfy the discerning palate of Argentine consumers,” the company said in a statement.

Quilmes — founded 126 years ago — is one of the region’s leading beverage companies. It has 5,745 employees and a chain of 181 independent distributors.

21 August, 2016