Colombian private equity fund manager Tribeca led the recent sale of Bogota Beer Company (BBC), Colombia’s leading craft brewer and pub operator, to AmBev, a leading brewer in Latin America.
Tribeca originally took a 40% stake in Bogota Beer Company in 2013, providing financing for an aggressive growth strategy that included increasing the number of pubs from 13 to 27 in the first two years, as well as the construction of a 280,000-hectoliters-per-annum state-of-the-art production facility near Bogota (up 14 fold versus previous production facility).
During the same period, Bogota Beer Company expanded its geographical presence to Medellin, Cartagena, Barranquilla and Santa Marta, making BBC the first craft brewer with national coverage.
The company also expanded its numeric distribution, increasing the volume sold through third-party channels by three times between 2012 and 2014.
Tribeca’s special focus on marketing and product quality helped strengthen BBC’s awareness. Today, Bogota Beer Company is widely recognised as Colombia’s largest micro-brewery and, with its British pub format and its award winning beers, is considered a front-runner in brand awareness within its segment and perceived as a leader in promoting beer culture in the country.
As a result of the various initiatives, company sales grew by 61% between 2012 and 2014, leading to international visibility and the successful closing of the referenced transaction.
With an annual IRR of 30%, the transaction is Tribeca’s second exit this year.
