Spain: Mahou San Miguel buys majority share in Canarian mineral springs

Mahou San Miguel, the leading brewer in Spain with a production of 16.1 million hectoliters in 2016, has acquired 51.78% of Aguas del Valle de La Orotava, a Canarian company that packages and markets the mineral water brands Fonteide and Los Alpes. The more than 25 year-old company has a workforce of 90 people and operates two own springs on the island of Tenerife.

The two brands will be added to Mahou San Miguel’s poprtfolio of water brands, which already include the iconic brand Solán de Cabras as well as Sierra Natura, Sierras de Jaén, Fuente del Arca and Solán de Cabras waters with added fruit juice. The mineral water business of Mahou San Miguel, which consists already of three mineral water springs with own bottling facilities in Spain is very successful . Sales increased by 13.6% in 2016 amounting to 2.6 million hectoliters in total.

With the purchase, Mahou San Miguel reinforces its position in the mineral water sector in Spain, as well as its presence in the Canarian market. In 2004 the brewer made its first major step on the islands by acquiring Cervezas Anaga, based in the outskirts of Tenerife’s capital Santa Cruz. Cerveza Anaga is locally known for its Reina brand.

"For us, it is a great satisfaction to incorporate into our company an asset such as Fonteide, which will undoubtedly contribute to the growth of our water business in the Canarian market, which is very attractive in terms of size and capacity for growth," says Mahou San Miguel’s director of the water business unit Jesús Núñez. "This operation will also strengthen our contribution to the social and economic development of the Islands, with which we are firmly committed," he added.

Not even two month ago, Mahou San Miguel announced to invest €11 million in the creation of the first so called Brewhub in Spain, which is meant to be a collaborative space where different domestic and international craft breweries will be able to share ideas and develop their beers, mainly for sale in the European market. (inside.beer, 27.2.2018)

Last year the company bought a 30% stake in Avery Brewing Co. from Boulder, Colorado, which was Mahou San Miguel’s second purchase in the United States after it bought 30% of Founders Brewing Co. in Grand Rapids, Michigan in 2014. (inside.beer, 28.11.2017)

 

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