Japan’s Kirin Holdings pays $1.4 bn for the rest of Brazilian brewer Schincariol

Kirin Holdings Company Co, Japan's second largest brewer after Asahi Breweries, today said that it would acquire the remaining stake it does not already own in Brazilian beer and soft drinks maker Schincariol for $1.4 billion.

The Tokyo-based company, which is looking for overseas growth amid declining domestic demand, will buy the remaining 49.54-per cent stake from Aleadri-Schinni Participacoes e Representacoes SA, the holding company of Schincariol.

In August 2011, Kirin had acquired a 50.45-per cent stake in Aleadri-Schinni for $2.56 billion (198.8 billion yen) in order to build a solid foothold in the rapidly expanding Brazilian market in addition to its existing base in Asia and Oceania regions. (See: Japan's Kirin buys controlling stake in Brazilian brewer for $2.56 billion) 

Schincariol, known for its Nova Schin, Devassa Bem Loura, Glacial, Baden Baden and Eisenbahn brands, is Brazil's second-largest beer producer and the third-largest carbonated soft drinks company.

Sao Paulo-based Schincariol reported 2010 sales of 2.85 billion real ($1.82 billion).

Brazilian beer market is rising in recent years due to its booming economy and rising wages. Beer volumes in Latin America's largest economy grew 3.4 per cent in the fourth quarter, compared to 14 per cent slowdown for the first nine months of 2010.
Anheuser-Busch InBev, the world's largest brewer, holds nearly 70 per cent of the $20 billion beer market in Brazil, which is the world's third-largest beer market after China and the US.