Diego Guzman's questions to UNITED BREWERIES CO (CCU) leadership • Q3 2023
Question
Asked which business (beer or non-alcoholic) has a better gross margin trend for the next six months, and requested details on the economic rationale for the non-recurring expense in Argentina related to the Danone JV integration.
Answer
The executive stated that the non-alcoholic business faces more commodity cost pressure (sugar, orange juice) and requires price increases above inflation. The beer business has better margins. Looking forward, the non-alcoholic business has more cost pressure than beer. The non-recurring expense in Argentina (~$10 million) is for integrating the Danone water business, which adds significant volume (~5 million hectoliters) and creates synergies, strengthening their position in the country.