Category: Central America

Companhia de Bebidas das Americas (AmBev) sees potential for further acquisitions in Central America and the Caribbean, following a purchase of a stake in the Dominican Republic’s leading beer brand earlier this year. CFO Nelson Jose Jamel tells LatinFinance that the company believes there are growth prospects both in its home market, as well as in other parts of Latin America. “We do see opportunities moving forward not only to continue growing in Brazil – our home market with 70% of our results and a growing industry with a lot of opportunities – but we also see opportunities to continue growing abroad. The opportunities are more limited today, but particularly in Central America and the Caribbean we think there are a lot of opportunities for future acquisitions,” he says. As the company eyes acquisitions it is also looking at increasing its capex spending in Brazil to accommodate growth, particularly the north and the northeast regions. Ambev’s capex is set to triple this year from its pre-crisis spending in that area. Yet the drinks producer is unlikely to look at the debt markets to finance that, as it has strong free cash flows, Jamel says. Capex this year is expected to come to around BRL3.0bn ($1.40bn), a record for the company, up from BRL2.1bn last year and BRL1.0bn in 2008. In April, AmBev agreed to spend $1.24bn to acquire a 51% position in Cerveceria Nacional Dominicana (CND), and the AB InBev parent was able to negotiate through regulatory challenges to seal a $20bn deal for the remaining 50% of Mexico’s Grupo Modelo.