Quilmes Industrial (Quinsa) S.A. (LQU)

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Quilmes Industrial, S.A. (LQU) is a beverage company providing beer, soda, and water in Argentina, Bolivia, Paraguay, Uruguay, and Chile. The company is widely known as Quinsa, a Luxembourg-based holding company that has the majority stake (93%) in Quilmes International (Bermuda), Ltd. (QIB). Quinsa also owns two PepsiCo bottlers: Baesa and EDISA (99% controlling interest), and a 49% minority interest in the mineral water company, Eco de los Andes. 65.2% of Quinsa's 2006 revenues were generated from Argentine beer, soft drinks, and other beverages, with Bolivia, Paraguay, Uruguay, and Chile contributing 13.4%, 12.2%, 5.3%, and 3.9%, respectively. Argentina generated 56.9% of the operating profits (EBITDA) in 2006, Bolivia 20.8%, Paraguay 18.1%, Uruguay 4.5%, and Chile 0.0%.

Through an 87.6% ownership in Quilmes International, Quinsa has strong market leadership positions in the beer markets of Argentina (78.7% market share in 2006), Bolivia, Paraguay, and Uruguay, along with a presence in Chile (12.7%). The company's beer brands include: Quilmes Cristal (the flagship brand), Andes, Imperial, Liberty, Quilmes Bock, Palermo Quilmes Light, and Bieckert in Argentina Pacena Pilsener, Tropical Extra, and Centenario in Bolivia Pilsen and Dorada in Paraguay and Doble Uruguaya and Zillertal in Uruguay.

Baesa is the largest PepsiCo bottler in Argentina and the sole PepsiCo bottler in Uruguay while EDISA is the second largest PepsiCo bottler in Argentina. The companies produce 84% of PepsiCo's soft drinks in Argentina and 100% in Uruguay. PepsiCo's soft drink products include Pepsi Cola, Pepsi Cola Light, Pepsi Twist, Pepsi Max, Seven-Up, Seven-Up Light, Mirinda, Paso de los Toros, Kasfruit Juice, Kas, Tropicana, and Gatorade.

Quinsa's Class A and Class B shares are listed on the Luxembourg Stock Exchange. Quinsa's American Depository Receipts (ADRs) represent non-voting Class B shares and trade on the NYSE with the symbol LQU. However, the company reports ADR results in U.S. dollars, translating the financial statements from the local currencies of the countries in which it operates.

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