Heineken, Coca-Cola
Heineken, Coca-Cola Company and the Coca-Cola System in Brazil’s redesigned distribution agreement to come into effect from mid-2021. Credit: Smit Patel on Unsplash.

Dutch brewing company Heineken has reached an agreement with The Coca-Cola Company and The Coca-Cola System in Brazil to redesign their distribution partnership.

The new distribution agreement should come into effect from mid-2021.

It will allow the three companies to better serve consumers and customers in the Brazilian market.

The parties agreed to a smooth transition of Heineken and Amstel brands to Heineken Brazil’s distribution network.

In addition, Kaiser, Bavari and Sol will continue to stay with the Coca-Cola distribution system.

Premium beer brand Eisenbahn, as well as other international brands, will complement the above portfolio.

Furthermore, Coca-Cola System in Brazil will have the option to produce and distribute alcoholic beverages and beers in certain quantities to Heineken’s portfolio. This is subject to some mutually-agreed-upon terms set out in the agreement.

Speaking of the development, Heineken Brazil managing director Mauricio Giamellaro said: “I am very pleased to redefine our distribution partnership with the Coca-Cola System in Brazil.

“Through a dual-route to market, we will be able to reach and better serve our consumers and customers with our broad portfolio, leveraging two strong distribution systems.”

Moreover, the Dutch brewer will also be able to explore further opportunities in the non-alcoholic segment.

The new agreement is subject to customary regulatory approvals.

The three firms also agreed to close the existing litigation between them associated with the previous distribution agreements.