Several Brazilian firms have helped The Coca-Cola Company and Dutch brewer Heineken sign a new contract for beer distribution in Brazil, putting an end to an old distribution contract dispute between both parties.

The companies signed the settlement agreement, including the new distribution contact, on 24 February in the São Paulo Court of Justice.

Machado Meyer Advogados and Lobo de Rizzo Advogados helped Coca-Cola on the drafting of the new distribution contract, while Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados advised Heineken.

Sergio Bermudes Advogados and E. Munhoz Advogados represented Coca-Cola in litigation and arbitration proceedings, while Heineken was advised by Ferro Castro Neves Daltro & Gomide Advogados and Forbes, Kozan e Gasparetti Sociedade de Advogados.

Following the settlement agreement, the Dutch brewer will distribute its Heineken and Amstel beer brands in Brazil, both of which were previously distributed by Coca-Cola. Meanwhile, Coca-Cola will continue to distribute the brewer’s Kaiser, Bavaria and Sol brands. Coca-Cola will also include Heineken’s brand Eisenbahn to its distribution portfolio. The settlement ends all ongoing disputes between the companies regarding previous distribution agreements.

The deal lasts until 31 December 2026, with the possibility of an automatic five-year renewal.

The settlement ends a dispute that began in 2020 when Coca-Cola made an annulment filing in the São Paulo Court of Justice to invalidate Heineken’s purchase of counterpart Brasil Kirin. Heineken had bought the assets through its subsidiary Bavaria, which Coca-Cola argued was an attempt from Heineken to side-step Coca-Cola’s distribution rights of Heineken’s alcoholic beverages in Brazil.

Ferro Castro and Forbes Kozan were co-counsel to Heineken in the lawsuit, while Sergio Bermudes and E. Munhoz advised Coca-Cola.

The two companies had been in disagreements over distribution contracts prior to the litigation too. Coca-Cola brought an arbitration proceeding against Heineken in 2017 shortly after the Dutch brewer acquired Brasil Kirin from Japanese counterpart Kirin in 2017. Among other assets, that deal handed Heineken a new sales and distribution network. Heineken subsequently terminated all existing distribution contracts with Coca-Cola for beer brands produced by Cervejaria Kaiser, a company acquired by Heineken in 2010. With the new sales network obtained from Kirin, Heineken argued it no longer needed the distribution contracts with Coca-Cola and did not want to work with two separate distribution networks.

Sergio Bermudes and E. Munhoz Advogados were co-counsel to Coca-Cola in the arbitration. Ferro Castro and Forbes Kozan advised Heineken.

The Rio de Janeiro-seated arbitration tribunal ruled in favour of Coca-Cola in late 2019. The tribunal issued an award saying Heineken-owned Kaiser could not terminate the distribution agreement with Coca-Cola. It stated that Heineken had to maintain two separate distribution networks for its beers in Brazil until the agreement would expire in 2022.

For drafting of new distribution contracts


Counsel to The Coca-Cola Company and Coca-Cola System

  • Lobo de Rizzo Advogados: Partners Valdo Cestari de Rizzo and Sergio Varela Bruna and associates Mariana Okada, Marina Horita, Natalia Silveira and Tales do Amaral Parreira


Counsel to Heineken

  • Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados: Partners Arthur Gonzalez Cronemberger Parente, André Chateaubriand Martins, Flávio Pereira Lima, Thiago Fernandes Moreira and Lauro Celidonio Gomes dos Reis Neto and associates Diogo Fernando Alves Dourado, Marina da Cunha Ruggero Lopez, Caio Lucas Gabra, Marcelle Fazzato Lopes and Ana Carolina Estevão


For the litigation


Counsel to The Coca-Cola Company and Coca-Cola System

  • Sergio Bermudes Advogados: Partners Fabiano Robalinho Cavalcanti, Marcio Vieira Souto Costa Ferreira, Caetano Berenguer, Fernando Novis, Ana Carolina Musa and Vivian Joory
  • E. Munhoz Advogados: Partners Eduardo Secchi Munhoz and João Vicente Lapa de Carvalho


Counsel to Heineken

  • Ferro Castro Neves Daltro & Gomide Advogados: Partners Marcelo Ferro, Simone Barros, Eduardo Pecoraro and Renato Coutinho and associate Marcelo Fernandes
  • Forbes, Kozan e Gasparetti Sociedade de Advogados: Partner Marco Gasparetti and associates Manuela Capp and Beatriz Villar


For the arbitration

Counsel to The Coca-Cola Company and Coca-Cola System

  • Sergio Bermudes Advogados: Partners Fabiano Robalinho Cavalcanti, Marcio Vieira Souto Costa Ferreira, Caetano Berenguer, Fernando Novis, Ana Carolina Musa and Vivian Joory
  • E. Munhoz Advogados: Partners Eduardo Secchi Munhoz and João Vicente Lapa de Carvalho


Counsel to Heineken

  • Ferro Castro Neves Daltro & Gomide Advogados: Partners Marcelo Ferro, Simone Barros, Eduardo Pecoraro and Renato Coutinho and associate Marcelo Fernandes
  • Forbes, Kozan e Gasparetti Sociedade de Advogados: Partner Marco Gasparetti and associates Manuela Capp and Beatriz Villar

(Latin Lawyer - 10.03.2021)