Profile: Compania Cervecerias Unidas SA (CCU.N)
21 Jul 2017
Compania Cervecerias Unidas S.A., incorporated on March 31, 1902, is a diversified beverage company operating principally in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. The Company operates as a brewer, soft drinks producer, water and nectar producer, wine producer and pisco distributor. It also participates in the home and office delivery (HOD), rum and confectionery industries in Chile; in the beer, water and soft drinks industries in Uruguay, and in the soft drinks, water and nectar industries and beer distribution in Paraguay and Bolivia. The Company's segments include Chile, International Business and Wine.
The Company participates in the sweet snacks business through Foods Compania de Alimentos CCU S.A. (Foods), which produces products under the Calaf, Natur and Nutrabien brands. The Company owns the brands, such as Watt's, Watt's Ice Frut, Yogu Yogu and Shake a Shake in Chile. The Company's beer brands include Royal Guard, Cristal, Dorada, Royal Guard Black Label, Heineken, Cristal Light, Budweiser, Escudo, Austral, Escudo Negra, Kunstmann, Escudo XXX, D'olbek, Morenita, Sol, Lemon Stones, Coors, Tecate, Blue Moon and Szot. Through its subsidiary, Fabrica de Envases Plásticos S.A. (PLASCO), it owns and operates a plastic factory in Renca, which supplies the pre-forms, returnable and non-returnable bottles and caps, primarily used by the Company in the packaging of its soft drinks and water products.
The Company carries a portfolio of products, which includes a range of brands of alcoholic and non-alcoholic beer, which are primarily marketed under approximately 10 different brands and five licensed brands, with Cristal as its primary brand in Chile. In addition, the Company produces and distributes Heineken beer; distributes Sol beer and Budweiser beer, and distributes and produces Kunstmann and Austral beer in Chile through distribution or license agreements. With its approximately four production plants in Santiago, Temuco, Valdivia (Kunstmann) and Punta Arenas (Austral), the Company has a nationwide production and distribution network. The Company also produces and sells non-alcoholic beverages in Chile, which include carbonated soft drinks (both cola and non-cola), nectars and juices, sports and energy drinks, ice tea and waters (including mineral, purified bottled water and HOD) with licensed brands across its categories. The Company operates in the bottled mineral water business under its two brand names: Cachantun and Porvenir, which are bottled and distributed nationally from its approximately two natural sources located within the central region of Chile (Casablanca and Coinco). The beer products sold in Chile are bottled or packaged in returnable and non-returnable bottles, aluminum cans or stainless steel kegs at its production facilities in the Chilean cities of Santiago, Temuco, Valdivia and Punta Arenas.
In Argentina, the Company is a producer and distributor of Heineken, Amstel and Sol beers, and a distributor in Argentina of import Kunstmann and Guinness beer brands. Additionally, the Company exports beer under the Schneider and Heineken brands. The Company has beer operations located in Salta, Santa Fe and Lujan. The Company's cider and spirits brands are Real, La Victoria, Saenz Briones 1888 and in spirits, El Abuelo. The Company produces and distributes Watt's in Uruguay. The Company is also engaged in the production, marketing and distribution of alcoholic and non-alcoholic beverages under various brands in Paraguay. The Company has interests in Bebidas del Paraguay S.A, which is the owner of the brands Pulp for carbonated soft drinks, Puro Sol for juices and La Fuente for waters, and is granted the license to produce and distribute nectars under the Watt's brand. Additionally, Bebidas del Paraguay S.A. has the license to distribute beer under the Heineken, Coors, Paulaner, Schneider and Kunstmann brands.
The Company, through Vina San Pedro Tarapaca S.A. (VSPT), produces and markets a range of wine products for the domestic and mainly the export market, reaching over 80 countries. VSPT's main vineyards are located in viticulture Chilean valleys, including productive plants in the cities of Lontue, Molina, San Fernando, Isla de Maipo and Casablanca, and also in Mendoza, Argentina.
The Company competes with AB InBev, DESA, Vina Concha y Toro, The Coca-Cola Company, Capel, Embotelladora Andina S.A., Quilmes Industrial S.A., Vina Concha y Toro S.A., Vina Santa Rita S.A. and Bodegas y Vinedos Santa Carolina S.A.
Compania Cervecerias Unidas SA