Compania Cervecerias Unidas S.A.

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International Guild of Hospitality & Restaurant Managers

Compania Cervecerias Unidas S.A. (NYSE:CU)

Compania Cervecerias Unidas S.A. (CCU) is a diversified beverage company operating principally in Chile and Argentina . The Company has brewery operations in Chile and Argentina , soft drink production and mineral water operations in Chile and Argentina , and is a wine producer in Chile . The Company's products in its beer and soft drinks businesses include a range of proprietary, licensed and imported brands.

Beer

The Company's line of beers in Chile includes a full range of super-premium, premium, medium-priced and popular-priced brands, which are primarily marketed under five different proprietary brands and two brand extensions. The Company's flagship brand is Cristal. The Company has a nationwide production and distribution network in Chile , consisting of two production (brewing and bottling) facilities and one bottling-only facility. In addition, the Company is the exclusive distributor in Chile of imported Budweiser and Guinness brand beers and the exclusive local producer and importer of Paulaner brand beers.

CCU entered the Argentine beer market in 1995 by acquiring two breweries (and their respective brands), CICSA, with production facilities in the city of Salta , and CSF, with production facilities in the city of Santa Fe . Additionally, in 1998, the Company bought the brands and assets of Cervecería Córdoba. The Company's Argentine operations also included a small mineral water production plant in the city of Rosario de la Frontera in the Salta province, which was sold in November 2001.

Under a joint venture agreement with Anheuser-Busch, CCU imports, sells and distributes Budweiser beer in Argentina . The Company also sells and distributes Budweiser beer in Chile . The Company began production and distribution of locally produced Budweiser beer in Argentina in December 1996, as part of its strategy to develop Budweiser as the flagship brand of its Argentine operations. As a result of this joint venture agreement, the Company and Anheuser-Busch have 89.2% and 10.8% respective interests in CCU Argentina. The Company also owns a 34.4% equity interest in Karlovacka, which owns and operates a brewery in Croatia .

The Company's principal competitor in the beer business is Cervecería Chile (a subsidiary of Quilmes of Argentina). The Argentine beer market consists of four other brewing groups: Quilmes , AmBev, Warsteiner and Galicia .

Soft Drinks and Mineral Water

CCU produces and sells soft drinks and mineral water products in Chile through ECUSA, the exclusive producer, bottler and distributor in Chile of the Company's proprietary brands and brands produced under license from PepsiCo, Schweppes Holdings Ltd. and Watt's Alimentos S.A. The Company is also a significant bottler and distributor of mineral water in Chile . ECUSA's soft drink and nectar products are produced in three facilities located throughout Chile , and its mineral water is produced in two bottling plants located at the natural sources in the central region of Chile . ECUSA operates its own sales force in the central regions and the major cities of Chile , delivering its products through the Company's distribution system in conjunction with its beer and wine distribution, with the exception of Santiago and its surrounding areas, where ECUSA operates its own delivery system. In the other cities and in the rural areas of Chile , soft drinks and mineral water are sold together with beer and wine.

The Company's principal competitors in the soft drinks business are companies that produce, bottle and distribute soft drinks in Chile under licenses from TCCC and its affiliates. TCCC's products are produced, bottled and distributed in Chile through three separate licensees that market soft drinks under the Coca-Cola, Coca-Cola Light, Fanta, Sprite, Sprite Light, Quatro, Manzana Lift, Nordic Mist, Andina nectars and juices, and Kapo juice brand names. The Company's main competitor in the mineral water business is Vital S.A. (a subsidiary of Embotelladora Andina S.A., one of TCCC's licensees in Chile).

Wine

The Company entered the Chilean wine industry in October 1994 with the acquisition of a 48.4% interest in VSP, a Chilean winery and wine exporter. After subsequent investments, the Company has increased its stake in VSP to 60.3% as of December 31, 2001. VSP produces and markets a full range of wine products for both the domestic and export markets. VSP's main vineyard is located in Molina, 200 kilometers south of Santiago. VSP's domestic wine products are distributed through the Company's nationwide distribution system and its export products are sold in 58 different countries through distribution agents.

VSP's primary domestic competitors are Concha y Toro and Santa Rita. The Company's other principal Chilean competitors are Concha y Toro, Santa Carolina and Santa Rita.

Other Businesses

Through its subsidiary Fábrica de Envases Plásticos S.A. (PLASCO), the Company owns and operates a plastic bottle and crate factory, which supplies most of the returnable and non-returnable plastic bottles used by the Company in the packaging of its soft drinks and mineral water products. PLASCO also produces plastic crates that are used to carry glass and plastic bottles, for beer, soft drinks and mineral water distribution. Most of these products are sold to the Company and it's other subsidiaries.

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

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