After a search that took almost a year and a half, the French group Danone found a partner for its mineral water business in Argentina. The Chilean company CCU -which locally controls the second largest brewer in the country, with brands such as Schneider, Heineken and Imperial- became the new minority shareholder of the largest mineral water company in Argentina.
The operation – which had been advanced for THE NATION a couple of months ago – has just been announced and contemplates the creation of a new company in which the French will maintain share control and includes all the brands that Aguas Danone has in Argentina -Villavicencio and Villa del Sur, in mineral water , and Levité, Ser and Brío in flavored waters, and their plants. Out of the agreement, only the reserve of more than 70,000 hectares and the historic hotel that Villavicencio has in Mendoza would remain.
“This agreement is an important step to strengthen both companies in a highly competitive market. Danone has a history of working with partners in the country and we are proud that Aguas Danone Argentina joins forces with CCU for the benefit of Argentine families”, Danone explained.
“This alliance represents the opportunity to enter a new beverage category in the country, jointly promoting the development of brands such as Villavicencio, Villa del Sur, Levité and Ser, among others. This will translate into greater dynamism in the industry with a more robust and innovative proposal for all our consumers”, they stated from CCU.
Danone’s parent company had announced its decision to seek a partner or buyer for its main businesses in Argentina in October 2020 and made it clear that all its local operations were undergoing a review process. To find the candidate, the company gave a search mandate to Lazard Bank.
Sources close to Danone now explained to THE NATION that the association with CCU It implies ratifying that the multinational does not intend to leave the country. “With this decision we are anchoring Danone’s operation in Argentina. The joint venture It shows that we are not leaving the country and that on the contrary we want to grow in the beverage business”, they pointed out in the company.
For its part, for CCU the operation represents its debut in the non-alcoholic beverage business in Argentina. The company of Chilean origin arrived in the country in the ’90s and until now participates in the beer business (Heineken, Schneider, Miller, Imperial, Isenbeck), ciders (La Victoria, Real, 1888) and wines (La Celia). At the regional level, on the other hand, it was already present in several non-alcoholic categories such as mineral waters (in Chile it is the leader with the Cachantún brand), soft drinks and juices.