After purchase of Brazil Kirin, Heineken fight with distributors of Coca-Cola

The Dutch brewery Heineken jumped to buy, by R $2.2 billion, Brazil Kirin. It seemed like a good deal: the Japanese company had paid three times the price, five years earlier, by 12 former factories Schincariol and brands like Schin, Eisenbahn and Baden Baden. However, the acquisition, which made Heineken reach almost 20% of the market, also brought headaches related to distribution. When inheriting the Kirin, the company decided to put the end your long-term relationship with distributors of Coca-Cola. The result is a fight that has dragged on in the courts and that in 2018, will be the subject of arbitration.
The contract between Heineken and the Coca-Cola system-represented legally by the Brazilian Association of manufacturers of Coca-Cola (ABFCC), which brings together 13 companies-will until 2022, but the brewery is understanding that it is possible to anticipate the termination. Bolstered by what's in the paper, the Coca-Cola system has entered the Justice and managed, in August, an injunction that keeps your hands on the distribution of Heineken – the portfolio includes Kaiser, Amstel, Bavaria, Xingu and Sun. The decision ensured the fulfilment of the contract until the two sides resolve the issue in arbitration.
Without consensus. Reaching a consensus is difficult. First because the distributors of Coca-Cola are not willing to compromise. The State found that the Dutch proposed to the Coca-Cola system maintain the distribution of two beers – Bavaria and Kaiser – until 2022. The proposal didn't go and, at least until the formation of the arbitral tribunal, Heineken will remain with two structures: the inherited from Kirin, for brands that recently bought, and Coca-Cola, for those who already owned.