SABMiller announces Brazil brewery deal

FTSE 100 brewing firm SABMiller will compete with Anheuser-Busch InBev in the world’s second-largest beer market Brazil after partnering with local brewer Grupo Petrolis, the Sunday Telegraph has reported.

AB InBev currently dominates the Brazilian market with a 63% share.

However, this new deal involves selling premium beer brands starting from next year in the hopes of capitalising on the middle-class market share.

SABMiller is also one of the key Coca-Cola product distributers that is expected to launch a new agreement in Africa very soon.

There was speculation that AB InBev might try to merge with SABMiller after SABMiller’s offer to acquire Heineken was rejected, but this has since dissipated.