Companhia de Bebidas

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International Guild of Hospitality & Restaurant Managers

Companhia de Bebidas Amer (NYSE:ABV)

AmBev is a brewery and worldwide beer producer in Latin America . The Company produces, distributes and sells beer, soft drinks and other beverage products, primarily in Brazil , but also in Argentina , Chile , Venezuela , Uruguay and Paraguay . AmBev is also a soft drink producer and the sole distributor of Pepsi beverage products in Brazil . The Company produces beer, soft drinks and other beverage products, including isotonic sport drinks, iced tea and water. Beer is its core business, and AmBev operates 11 beer and 14-mixed beer/soft drink plants in Brazil , with an aggregate annual installed beer production capacity of approximately 84.1 million hectoliters. Its plants are located in all five regions in Brazil .

Beer

The Company's beer brands are divided into three beer brand portfolios: Skol, Brahma and Antarctica . Each of these portfolios offers a variety of beers, including pilsner, lager, dark and non-alcoholic beers. Skol Pilsen, Brahma Chopp and Antarctica Pilsen, which are all standard pilsner beers, are AmBev's core products and the flagship products of their respective brand portfolios, representing 54%, 27.5% and 14.8%, respectively, of the Company's total beer product mix by volume in 2001. The Company's beer products are distributed through its Skol, Brahma and Antarctica third-party distribution networks, as well as through its own direct distribution network. The remainder of AmBev's beer sales are attributable to niche brands, all of which are also proprietary brands, with the exception to Miller and Carlsberg (both brands accounted for 0.4% of sales volume in 2001), which are produced under license from third parties.

Outside of Brazil , AmBev has beer operations in Argentina , Venezuela , Paraguay and Uruguay through its controlling interests in CCBA S.A. , located in Argentina ; CA Cervecera Nacional (CACN), located in Venezuela ; Cerveceria y Malteria Paysandu S.A. (Cympay) and Compania Salus (Salus), both located in Uruguay , and CCBP, located in Paraguay . The Company also has entered into an agreement with Quilmes Industrial S.A. ( Quilmes ), which has beer operations in Argentina , Bolivia , Chile , Paraguay and Uruguay .

In addition, the Company exports a small portion of its beer products. AmBev's principal export beers are Brahma Chopp and Antarctica . Total exports represented less than 1% of its total net sales in 2001. The Company's total beer sales outside of Brazil accounted for 6.4% of its total net sales in 2001, compared to 4.6% in 2000.

AmBev began business in Argentina and Venezuela in 1994. Principal brands sold in these countries are Brahma Chopp, Brahma Bock, Brahma Malta , Malta Caracas, Cerveza Nacional and Stout. During the third quarter of 2001, the Company launched Brahma Light in Venezuela . Also, it implemented direct distribution in Venezuela 's capital city of Caracas .

Soft Drinks

The Company focuses on a core soft drink portfolio that offers brands, including Guarana Antarctica, Pepsi and Sukita orange soda. AmBev's soft drinks are sold and distributed through its beer distribution network, which serves on-premise points of sale, as well as supermarkets. Guarana Antarctica is also sold in major fast-food outlets, such as McDonald's. The Company's Antarctica portfolio includes Guarana Antarctica (regular and diet version), Soda Limonada Antarctica (regular and diet version), Tonica Antarctica (regular and diet version) and Club Soda Antarctica. AmBev's Pepsi portfolio includes Pepsi Cola, Pepsi Light, Diet Teem and 7 UP. Its Brahma portfolio includes Sukita, Sukita Light, Guarana Brahma (regular and diet version), Limao Brahma and Tonica Brahma.

Other Products

AmBev also offers non-alcoholic beverages, such as mineral water, isotonic sport drinks and iced tea. AmBev sells and distributes these products through its beer distribution networks. Other products sold are mainly by-products from beverage production and malt.

The Company competes with Molson, Schincariol, Quilmes and Coca-Cola.

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