ABEV3 Ambev

Ambev S.A. is a publicly traded company in the beverage sector, with common shares traded on B3 under the ticker ABEV3 and also listed on the New York Stock Exchange (NYSE) through ADRs. The company, in its current corporate form, was incorporated on July 8, 2005, as the successor to Companhia de Bebidas das Américas – Ambev. Its operational origins, however, trace back to the breweries Brahma and Antarctica, founded in 1885 and 1888, respectively, which over decades consolidated a significant presence in the Brazilian beer market. The Brahma brand was registered as early as 1888, and in 1904 the then Villiger & Cia. was renamed Companhia Cervejaria Brahma, an important milestone in the history that preceded the formation of the group that would become Ambev.

Ambev’s current corporate structure is the result of a series of corporate reorganizations. In 2013, Ambev S.A. carried out the merger of all outstanding shares of the former Companhia de Bebidas das Américas – Ambev, including shares in the form of ADRs, in a transaction that unified the shareholder base into a single class of common shares. This reorganization simplified the group structure, turning Companhia de Bebidas das Américas – Ambev into a wholly owned subsidiary and migrating former shareholders to the new listed company. In 2014, Ambev S.A. merged Companhia de Bebidas das Américas – Ambev itself and Ambev Brasil Bebidas S.A., thus directly holding the assets, rights and obligations of these companies and concentrating industrial and commercial operations under the current issuer of ABEV3.

Ambev operates in the production, distribution and sale of beer, soft drinks, other alcoholic beverages, non-alcoholic and non-carbonated beverages, as well as malt and by-products. The company’s corporate purpose also includes the production and trade of beverage raw materials, the certification and commercialization of seeds and grains, agricultural growing and fostering activities, import and export of products, as well as the operation of bars, restaurants and snack bars. Its business model is based on a broad network of large-scale industrial assets, combined with an extensive distribution network that serves millions of points of sale in different countries across the Americas, with a primary focus on beer and non-alcoholic beverages as revenue drivers.

Ambev’s operations are organized into four operating segments: Brazil, Central America and the Caribbean (CAC), Latin America South (LAS) and Canada. In Brazil, the business is subdivided into Beer Brazil, which concentrates the beer operation and “beverages of the future,” and NAB Brazil, dedicated to non-alcoholic beverages. In 2024, the largest share of consolidated net revenue came from the Brazilian market, with Beer Brazil and NAB Brazil together accounting for a significant portion of total revenue. The other segments cover the beer and soft drink operations in Central America and the Caribbean, the markets of Argentina, Bolivia, Paraguay, Uruguay and Chile in Latin America South, and Labatt’s operations in Canada, consolidating Ambev as a relevant multinational group in the beverage industry in the Americas.

The company developed its international presence starting in the 1990s, initially with the expansion of Brahma’s operations in Latin America. Among the relevant strategic moves is the acquisition of an interest in Quinsa in the early 2000s, which granted a leading position in beer markets in Argentina, Bolivia, Paraguay and Uruguay, later expanded to control of 91% of the company’s capital stock and its full consolidation. Another milestone was the business combination completed in 2004 with the then Belgian brewery Interbrew, the indirect controlling shareholder of Labatt Brewing Company Limited, which enabled access to the Canadian market. This transaction also led Interbrew, later renamed Anheuser-Busch InBev SA/NV (ABI), to become Ambev’s majority shareholder through subsidiaries, consolidating the company within a global beverage group.

On the product front, Ambev maintains a broad beer portfolio, which includes different styles such as lagers, ales, light-bodied, full-bodied and wheat beers, tailored to regional preferences and distinct consumption occasions. In non-alcoholic beverages, the company produces soft drinks, energy drinks, juices and other non-carbonated beverages, and also acts as a bottler and distributor of third-party brands in some markets, such as soft drinks under Pepsi franchise agreements in South American, Central American and Caribbean countries. Its production processes follow established industrial standards, both for beers and for soft drinks and non-carbonated beverages, with an emphasis on quality control, multiple testing points and monitoring of parameters such as water and energy consumption and extraction efficiency.

Ambev’s geographic footprint spans 15 countries in the Americas, with a strong operational concentration in Brazil and a relevant presence in Canada, Argentina, Bolivia, Paraguay, Uruguay, Chile, Panama, the Dominican Republic and other Central American and Caribbean markets. The company operates its own breweries and distribution centers, complemented by a network of exclusive third-party distributors. In Brazil, distribution is structured through more than 89 direct distribution centers and around 207 exclusive distributor operations, serving channels such as bars, restaurants, supermarkets, bakeries, convenience stores and grocery shops. In markets such as the Dominican Republic and Panama, it combines direct distribution, its own or outsourced fleets and independent distributors, tailoring the model to local logistics conditions. In 2024, Ambev maintained annual installed capacity on the order of hundreds of millions of hectoliters, with actual production below total capacity, preserving headroom for volume expansion.

Ambev’s activities are subject to a broad regulatory framework, which includes labor, social security, public health, consumer protection, environmental, antitrust, securities, foreign exchange and, more recently, privacy and personal data protection legislation. In Brazil, the manufacture, transportation and sale of beverages are supervised mainly by the Ministry of Agriculture, Livestock and Food Supply (MAPA) and the National Health Surveillance Agency (ANVISA), in addition to local health surveillance bodies at state and municipal levels. The company must maintain operating licenses, comply with labeling, composition and additive-use requirements, and observe specific limits and rules for advertising alcoholic beverages. The LGPD also impacts the company’s operations, which involve large volumes of personal data from employees, customers, distributors and consumers, requiring a privacy governance structure, information security measures, and contingency plans for cyber incidents.

In sustainability and social-environmental responsibility, Ambev incorporates long-term targets in areas such as water management, climate and energy action, circular packaging economy, sustainable agriculture, responsible consumption and productive inclusion. Water, a central input for the production of beer and soft drinks, is the focus of internal targets to reduce consumption per hectoliter produced and of projects for reuse and recovery of effluents. In recent years, the company has reported a significant reduction in specific water consumption and achieved high efficiency levels in effluent treatment, with part of the treated water being redirected for industrial and community uses in the regions where it operates. These topics are integrated into the business strategy and the definition of investment priorities, reflecting the relevance of environmental, social and governance practices in Ambev’s positioning as an issuer of ABEV3 shares on B3 and as a participant in beverage value chains in multiple countries.