Companies / Brazil
AmBev's Margin Growth Likely To Slow
June 2008 | Company News AlertAmBev, which controls around 70% of the Brazilian beer market, has announced it will invest BRL213mn (US$132mn) to build a new malt plant in the Brazilian state of Rio Grande do Sul. Over the past few years, the firm has pursued a policy of vertical integration to drive down costs, and this investment is another move in that direction. This strategy has allowed the firm to increase its margins by nearly 10 percentage points over the last five years (see graph).
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