Heineken has acquired a 75% stake in Florida Ice & Farm Co. for US$3.25 billion, strengthening its presence in Central America's beverage market.

Information on the Target

Florida Ice & Farm Co. (FIFCO), a prominent player in the beverage, food, and retail sectors in Central America, has announced the sale of a 75% stake in its operations to Dutch brewing giant Heineken for US$3.25 billion. FIFCO's portfolio includes well-known brands such as Imperial, Pilsen, and Bavaria, alongside non-alcoholic beverages and retail chains like Musmanni and MUSI across Costa Rica, El Salvador, Guatemala, and Honduras. Additionally, this deal extends to Heineken's acquisition of its beverage operations in Mexico and a substantial stake in Nicaragua and Panama's brewing markets. With this transaction, Heineken will consolidate its control of these operations, leading to a more robust presence in Central America.

FIFCO has been a key entity in the Central American market since its listing on the National Stock Exchange in 1979. The announcement of this significant sale immediately impacted the local capital market, prompting the General Superintendence of Securities (Sugeval) to suspend trading of FIFCO’s stock and bonds for two days to safeguard investors against speculative behavior while the details of the deal were being absorbed. Following the trading suspension, FIFCO's stock resumed trading, but with notable caution as market participants sought additional clarity regarding the implications of the transaction.

Industry Overview in Central America

The beverage industry in Central America is highly competitive, dominated by multinational corporations such as Heineken and Coca-Cola FEMSA. The acquisition of FIFCO positions Heineken to not only control a significant share of the beer market but also expand its influence in the n