Ambev SA, the largest beer and soft drink manufacturer in Latin America, plans to invest 2,000 million reais (US $432 million) to open two new plants in Brazil, where it faces tougher competition as Heineken NV has expanded aggressively.
The company said in a statement issued on Sunday that it will open a new brewery in the northern region of Brazil, a malt factory in the southeast, a can-producing unit and additional premium beer production lines.
Ambev said the investment represented part of its goal of growing its premium beer portfolio.
According to company data, sales volume in this sector grew by two digits. Similarly, Bohemia, Ambev’s pure malt beer, increased its sales by three digits only in 2019.
The brewery presented an adjusted net profit of 12,540 million reais (US $2.700 billion) for 2019. The result is 8.5% higher than that accumulated in 2018.
According to Ambev, only in the interval between October and December, the adjusted gain was 4,630 million reais (US $1 billion), an increase of 24.4% compared to the same period of the previous year.