Cisneros, Interbrew to Form Beer Venture

Venezuela’s Cisneros family and Belgian brewer Interbrew said they will form a joint venture that could invest $2 billion over the next five years to boost beer sales in Latin America. The companies said they and possible future partners hope to capture 10% to 15% of Latin America’s market. The companies will initially focus on Venezuela, where a $250-million investment is planned. Interbrew, the world’s fourth-largest brewer, will take a 50% stake in a Cisneros-owned regional brewery. Toronto-based Labatt Brewing Co., acquired by closely held Interbrew in 1995, will manage Interbrew’s interests in the joint venture. The deal ends more than a year of searching by Caracas-based Organizacion Cisneros for a partner to try to break Empresas Polar’s dominance of the $1-billion-a-year Venezuelan beer market.