Aguas del Valle de La Orotava bottles and sells the Fonteide and Los Alpes mineral water brands
Spanish brewer Mahou San Miguel has acquired a 51.8% stake in Aguas del Valle de La Orotava, a Canary Islands-based company that bottles and sells the Fonteide and Los Alpes mineral water brands.
The operation serves to underpin Mahou San Miguel’s position in the mineral water sector in Spain as well as its presence in the Canary Islands market, to which it has had close ties ever since Cervezas Anaga and its Reina beer brand joined the company in 2004.
The Fonteide and Los Alpes brands will be added to the Mahou San Miguel business water unit portfolio, which has registered solid progress in the Spanish bottled water market in recent years thanks to the momentum provided by its Solán de Cabras brand and the performance of lines such as Sierra Natura, Sierras de Jaén, Fuente del Arca and the Solán de Cabras water with fruit juice range.
Mahou San Miguel’s water unit registered growth of 13.6% in 2016 in terms of sales, amounting to 2.6 million hectolitres. The company currently owns three mineral water springs, each with their own bottling plants, giving a combined production capacity of more than five million hectolitres per year.
Aguas del Valle de La Orotava also owns two springs based on the island of Tenerife.
Mahou San Miguel water business unit managing director Jesús Núñez said: “It is a matter of huge satisfaction for us to add an asset such as Fonteide to our company, and this will undoubtedly help grow our water business in the Canary Islands market, which is particularly attractive in terms of size and potential for growth.
“This purchase will also underpin our position among the companies offering the greatest value in the water category in Spain.”
Mahou San Miguel said it will also be promoting the growth of its Mahou, San Miguel, Reina and Alhambra beer brands in the Canary Islands to consolidate its position as the second-largest brewer in terms of sales, which expanded by 6% in 2017 compared with the previous year.
Earlier this year, Mahou San Miguel announced an investment of €11 million to create a collaborative space in the south of Spain in which craft brewers will be able to share ideas and develop their beers.
© FoodBev Media Ltd 2018