Profile: Compania Cervecerias Unidas SA (CCU.N)
Compania Cervecerias Unidas SA (CCU) is a diversified beverage holding company that, through its subsidiaries and affiliates, has operations established in Chile, Argentina, the Cayman Islands and Liechtenstein. It has licensing agreements with Heineken Brouwerijen BV, Anheuser-Busch Incorporated, PepsiCo Inc, Paulaner Brauerei AG, Schweppes Holdings Limited, Guinness Brewing Worldwide Limited and Societe des Produits Nestle SA. In addition, through its wholly owned subsidiary Fabrica de Envases Plasticos SA (PLASCO), the Company is engaged in the manufacture of plastic bottles. The Company’s majority shareholder is Inversiones y Rentas SA, with 61.67% of its interests.
Beer Business in Chile
The brands produced under license and brands imported under license for the Chilean market by the Company include Royal Guard, Royal Light , Heineken, Budweiser, Paulaner, Austral and Kunstmann. Cristal is CCU’s principal beer brand in Chile. Cristal Red Ale and Cristal Black Lager are brand extensions of Cristal. Royal Guard is super-premium brand. Royal Light is a light beer extension of the Royal Guard line and contains a lower alcohol content. Morenita is a dark beer and Dorada 6.0 is a discount brand. Lemon Stones is a lemon flavored sweetened beer, with a 2.5% alcohol content. The Company’s 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 and Antofagasta.
Beer Business in Argentina
CCU produces and markets super-premium, premium and medium-priced brands in Argentina. Its principal brands produced and imported under license in Argentina are Heineken, Corona, Guinness, Negra Modelo, Paulaner and Imperial. Schneider is its principal brand in Argentina. Budweiser beer represented 31% of the Company’s Argentine sales volume during the year ended December 31, 2008. Schneider brand is sold in three varieties: regular lager, dark and Schneider Fuerte 6.0°, a brand extension with 6% of alcohol; the Salta brand is sold in regular and strong lager, and dark varieties, and the Santa Fe brand is sold in regular lager and dark varieties. The Cordoba brand is sold only as a regular lager.
Non-Alcoholic Beverage Business
The Company has produced and sold soft drinks in Chile. Its line of soft drink products include its own brands, in addition to brands produced under license from Cadbury Schweppes plc. (Crush, Crush Light, Canada Dry Agua Tonica, Canada Dry Agua Tonica Light, Canada Dry Ginger Ale, Canada Dry Ginger Ale Light, Canada Dry Limon Soda and Canada Dry Limon Soda Light) and from PepsiCo (Pepsi, Pepsi Light, 7Up and 7Up light). The Company is also engaged in the bottled water business. CCU also produces, bottles and/or distributes sports drinks (Gatorade and imported Propel) and tea (Lipton) under the license of PepsiCo and its own brand energy drinks (Kem Extreme), as well as PepsiCo’s licenced one (imported SoBe Adrenaline Rush).
The Company owns 50% interest in Vina San Pedro S.A. (VSPT). VSPT is a producer and distributor of wine. VSPT’s principal vineyards are located in Molina, approximately 200 kilometers south of Santiago. As of December 31, 2008, VSPT’s vineyards covered an aggregate of 3,504 hectares in Chile, distributed among 10 different plantations. The winery also has 469 hectares under long-term lease. In Argentina, it has another 412 hectares located in the province of Mendoza.
CCU produces and markets ultra premium, premium and medium-priced pisco brands in Chile, as well as premium and medium-priced rum. The principal pisco brands of the Company are Control C, Mistral Nobel, Tres Erres and Horcon Quemado. All of the Company’s spirits are bottled in non-returnable glass bottles at its production facilities. The Company obtains all of its glass bottles from third-party suppliers.
Through its subsidiary Fabrica de Envases Plasticos S.A. (PLASCO), the Company owns and operates a plastic bottle factory, which supplies most of the returnable and non-returnable plastic bottles primarily used by the Company in the packaging of its soft drinks and mineral water products. The Company sells food’s products through CCU’s sales platform, with a sales force that serves the supermarket chains.
The Company competes with Anheuser Busch InBev, AmBev-Quilmes, Warsteiner, The Coca-Cola Company, Embotelladora Andina S.A., Concha y Toro, Santa Rita, Undurraga, Cousino Macul, Santa Carolina and Cooperativa Agricola Pisquera Elqui Ltda.
Compania Cervecerias Unidas SA
AV. VITACURA 2670, Metropolitana
Casilla Postal: 33
LAS CONDES 7650054