In partnership with E. León Jimenes, owner in 83.5% of the Dominican National Brewery (Cervecería Nacional Dominicana, CND), the Brazilian group will operate in the area of beers, malts and sodas not only in the Dominican Republic but also in Antigua, St. Vincent and Dominica.
In a joint operation, the two companies will also export its drinks “to 16 Caribbean countries and to the United States and Europe”, according to an official document from AmBev.
AmBev Brazil has acquired an indirect participation of 51% in CND at a cost of about USD.2 billion. The deal between the two groups will be materialized in the form of CND Tenedora SA, a holding company which will own 83.5% of the CND and 100% of AmBev Dominicana.
Founded in 1929, CND has in its portfolio Presidente beer, among others, and plants set in Santo Domingo, Dominica and St. Vincent. As an immediate benefit of this business, the Brazilian company highlights the opportunity of expansion for this brand outside Dominican borders and the chance for Ambev to get the leadership in the Caribbean and Central America.
The Brazilian company operates in 14 countries in the Americas and in 2010 recorded a net income of $ 25 billion, according to figures released by the institution. Before this partnership, Ambev participation in the Dominican market was represented only by Brahma beer.
The closing of the transaction, defined by the two business groups as a “strategic alliance in order to create the leading beverage company in the Caribbean”, is scheduled for next month, May 2012.
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