Wal-Mart Announces Tender Offer for Ownership of D&S

Wal-Mart Stores, Inc. today announced it will launch a tender offer to acquire all of the issued and outstanding shares and American Depositary Shares of Distribucion y Servicio D&S S.A. (DYS).

The tender offer price is denominated at US$0.408 per common share. This offer price represents a premium of approximately 37.4 percent over the average closing price for the prior 30 trading days.

"Moving into Chile is an important step in implementing Wal-Mart International's strategy. We continue to focus on portfolio optimization, global leverage and winning in every market," said Michael T. Duke, vice chairman, Wal-Mart Stores, Inc. "A successful tender offer will give Wal-Mart the opportunity to be a significant participant in Chile, which continues to have a strong and growing economy among South America countries."

The tender offer is expected to commence Dec. 23, 2008 in the United States and Chile. Wal-Mart has set as a minimum condition of the tender offer, the acquisition of at least 50.01% of D&S's fully-diluted common shares. In order to demonstrate their support for the offer, the Ibanez family, the existing controlling stockholders of D&S, have agreed to tender a portion of their D&S shares. These controlling shareholders will enter into a long-term stockholders' agreement with Wal-Mart regarding D&S, which will continue to operate with its existing leadership, associates and brands.

According to Craig Herkert, President and CEO, the Americas, Wal-Mart International, "This investment demonstrates our deep respect for D&S, which has a long history of providing the best value to Chilean consumers. We share a laser focus on price leadership just as we do in Wal-Mart's 10 retail markets throughout the Americas. Both companies also have the same core values and business philosophies: respect for the individual, service to the customer and striving for excellence."

About Wal-Mart Stores, Inc.

Wal-Mart Stores, Inc. operates Wal-Mart discount stores, supercenters, Neighborhood Markets and Sam's Club locations in the United States. The Company operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom and, through a partnership, in India. The Company's securities are listed on the New York Stock Exchange under the symbol WMT. More information about Wal-Mart can be found by visiting http://www.walmartstores.com. Online merchandise sales are available at http://www.walmart.com and http://www.samsclub.com.

About Distribucion y Servicio S.A.

D&S is a Chilean company whose stock is traded in the national and international Stock Exchanges. It is made up of a group of companies whose core business is food retail through different supermarket and hypermarket formats aimed at satisfying customers' diverse needs. It covers the whole country, from Arica to Punta Arenas.

Publication: PR Newswire
Provider: PR Newswire
December 20, 2008

Eolic Partners Chile projects USD 175m wind park in Coquimbo

Chilean-based wind project developer Eolic Partners Chile SA projects to build a USD 175 million (EUR 125.8m) wind park located 265 km north of the capital city of Santiago.

The wind park is planned to have 38 wind turbines, each of 2 MW, according to the environmental impact declaration for the project, presented to the local authorities on Thursday.

The project, named Gorgonia wind park, will be built in the Punitaqui community in Chile's Coquimbo region and will be connected to the 220 kV line Los Vilos-Pan de Azucar of the central transmission grid SIC.

Eolic Partners Chile is participated by German capitals and is linked to the wind farm developers Eolic Partners of Spain and Ostwind and Aufwind of Germany.

Publication: ADP News
Provider: AII Data Processing Ltd.
December 22, 2008

Moller & Perez Cotapos to build Clinica Bicentenario

As announced back in October 2008 by the specialist press, the firm Moller & Perez Cotapos has been awarded the contract at tender for the building of the Clinica Bicentenario at an investment cost of US$87mil. The clinic’s construction is a project put together by the Camara Chilena de la Construccion (CChC). It will consist of two buildings, an eight-floor clinic and a 20-storey tower-block for related activity, Fernando Leon, general director of the clinic. Building work should finish in 2010. Moller & Perez Cotapos is somewhat of a specialist in hospital construction: it is currently at work on the Arica hospital and participated in the remodelling of the Clinica Santa Maria.

Publication: SABI - Business News
Provider: South American Business Information
December 10, 2008

Golborne leaving Cencosud with his head held high

Laurence Golborne Riveros (aged 47) will leave his job as general director of Chilean retail giant Cencosud on January 31, 2009, after seven years and ten months at the helm. The group posted a turnover of US$1.5bil in the year 2000; it will close 2008 with sales of US$10bil. Poached away from Gener on the basis on his austerity, plain-thinking and creativity by Horst Paulmann, Golborne employed all sorts of financial artifices to finance the group's colossal expansion (flotations, capital increases, link-ups with investors, bond issues etc). The most impressive was a share exchange that allowed Cencosud to buy department-store chain Paris. The departing executive oversaw a frenzied seven-month period last year in which Cencosud entered nations three, four and five (after Chile and Argentina), namely Colombia, Brazil and Peru.

Publication: SABI - Business News
Provider: South American Business Information
December 10, 2008

Transelec acquires massive coverage

Transelec has carried out the biggest coverage operation in its history, one to the tune of US$645mil, the Chile-based electricity transmission group controlled by Canadian capital turning to a consortium formed by Deutsche Bank, HSBC and JP Morgan. Transelec's vice-presidente de finanzas, Marcelo de Petris adds that the sum is the largest ever committed in an operation of this kind in Chile and that the idea is to protect shareholders such as Brookfield Asset Management from stock-market volatility. This coverage operation serves to set the exchange rate at the levels of mid-2006, Peso$530 per US$1.

Publication: SABI - Business News
Provider: South American Business Information
Date: September 30, 2008

Molymet proposes capital increase, more directors

Chilean molybdenum products producer Molymet reported it plans to call a shareholder meeting to propose a capital increase and the addition of more directors to its board.

The capital increase, for which Molymet did not specify an amount, is to be carried out through the issue of shares over three years, the company said in a statement to securities regulator SVS.

Molymet sold 37,581t of molybdenum products in this year's first half for US$1.45bn in revenues and US$75.2mn in net earnings.

Created in 1975, Molymet has operations in Chile, Mexico, Germany and Belgium. The company's products include molybdic oxide powder and briquettes, ferromolybdenum, perrhenic acid, rhenium metal powder and pellets, and ammonium dimolybdate. The products are used in specialty steelmaking, the chemicals industry, and metallic and superalloys.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: September 10, 2008

Brazil MPX Energia Expands Castilla TPP Project in Chile

Brazilian energy firm MPX Energia expanded its project for the construction of the Castilla coal-fired thermoelectric power plant (TPP) in Chile to 2,100 MW, the director of MPX in Chile, Luis Hormazabal, said, as reported on September 7, 2008.

Thus, the total investment in Castilla would reach $4.5 bln (3.109 bln euro).

Initially, the project contemplated the installation of an installed capacity of 1,400 MW in Punta Cachos, northern Atacama region, with the first generators due to kick off in 2012.

With the expansion, Castilla will be developed in three stages of 700 MW over the next 10 years.

This is the second largest electricity project in Chile after the 2,750 MW hydroelectric project HidroAysen of the local power producers Endesa Chile and Colbun.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: September 8, 2008

Rio Tinto extends Cu exploration JV in Chile with Codelco

Rio Tinto has signed two more joint-venture agreements with the world`s largest copper producer Codelco for copper exploration in Chile.

The agreements with Codelco`s subsidiary CCM Los Andes include the exploration of the Estel and Paloma prospects in northern Chile and follow the first joint agreement signed between the two companies in January (MB Jan 24).

Rio Tinto has the option to acquire a 55% interest in each prospect through stand-alone exploration investments of $20 million. The agreements include provisions to increase Rio Tinto`s ownership to 60%.

"We are very pleased to enter into these additional agreements which strengthen Rio Tinto`s relationship with Codelco and provide access to some of the most prospective copper tenement in the world," Rio Tinto Copper ceo, Bret Clayton, said in a statement on Tuesday.

The Esteli property adjoins the Exploradora mine, which was subject to the first joint venture agreement between Rio Tinto and Codelco, while the Paloma property is located close to the copper mines at Spence and El Tesoro.

An exploration drilling programme is currently underway at Exploradora and will be followed by drilling at Paloma this year.

Rio Tinto has several additional copper exploration properties under title which are scheduled for drill-testing later this year.

Publication: Metal Bulletin
Provider: Metal Bulletin com
Date: September 2, 2008

Chile's CAP aims to replace 20% of Andean steel imports

Chile's CAP Group recently announced a major expansion plan for its steelmaking arm, Compañía Siderurgica Huachipato (CSH), and now it aims to become a major steel supplier to Andean countries.

Steel Business Briefing learns from local reports that after CSH's expansion to 3m tonnes/year, the group intends to trade a 400,000 t/y surplus in finished products with neighbouring markets, such as Peru, Ecuador and Colombia.

The group already has operations abroad within Latin American countries, such as Tupemesa in Peru and Tubos Argentinos, in Argentina.

CAP is eyeing an opportunity to replace imports into the Andean region. Peru, Colombia and Ecuador are thought to import over 2m t/y of steel products, SBB is told.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: September 1, 2008

Chilean miner and Wisco discussing partnership in iron ore

Chilean miner Minera Santa Bárbara (MSB) is negotiating a joint venture with Chinese steelmaker Wisco to develop iron ore reserves in the country, Steel Business Briefing learns from Australia’s Admiralty Resources, MSB’s parent company.

According to the group, the Chilean iron ore producer has at least eight mines not operating, which “would be suitable for such co-development."

MSB operates at Atacama, northern Chile. Currently, the company has a sales contract with Wisco. Both parties are also negotiating a new supply contract for a period of five or ten years.

Admiralty also says it is in advanced negotiations to acquire a 40% stake owned by Wyndham Explorations in MSB. This will allow the Australian group to reach a 100% ownership of the Chilean miner.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: August 29, 2008

Mainstream Renewable Power gets investment

Dublin-based Mainstream Renewable Power has received a boost from news that Barclays Capital is to invest Euro 20m in the venture. Airtricity founder Eddie OConnor is trying to raise Euro 200m to make the company one of the big players in the renewable energy industry. Our plan is to go to investors with a series of commercial opportunities later this year and to raise enough equity to develop them. Funds from the sale of equity will go towards procuring wind turbines, the company said. Mainstream launched just six months ago and has already signed a deal to provide up to 240MW of wind energy in Chile.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: August 14, 2008

Enami opens expanded Chañaral copper plant

Chile's mining minister Santiago González inaugurated Monday (Aug 11) expansions at the Chañaral plant of state-owned copper producer Enami in region III, according to a statement by the ministry.

Following US$10.5mn in expansions, the Chañaral plant can produce up to 800t/m in copper cathode, according to the ministry.

Enami's role as a state company is to buy and process copper ore from miners too small to produce their own cathodes or concentrate as a way to support Chile's small and midsize mining sectors.

The company has suffered from overstock for some time with limited amount of processing capacity compared to its stockpiles.

The expansions to the Chañaral plant will aid the company is reducing its overstocked ore.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: August 13, 2008

Chile salmon exports increase 14%

Exports of salmon and trout of Chile increased 14 percent during the first half of 2008 when compared to same period in 2007. The main destinations for the Chilean salmon were Japan and the US with 66 percent of total exports. Exports to Japan rose 17 percent, to 104.713 metric tons. The Latin American market showed the largest expansion with 24.827 metric tons (+47%). In terms of US dollar, exports narrowed 3 percent to USD 1.194 million

Publication: BIS - Business Information Systems
Provider: Business Information Systems
Date: August 14, 2008

Petrobras buys ExxonMobils gas stations in Chile

Brazilian state oil company Petrobras has signed an agreement to acquire ExxonMobils fuel distribution network in Chile for USD 400 million. Petrobras director of international business, Jorge Luiz Zelada announced that the deal was finalized. The transference of control over that network is scheduled to occur in the second quarter of 2009, when payment is made.

The Brazilian firm is acquiring contracts with 230 gas stations, 109 of them directly owned by Exxons Esso Chile Petrolera, and the concessions to supply fuel to 11 airports. Also part of the package are six large fuel-distribution terminals, two of which are joint ventures. Petrobras stated in a press release that Exxon Mobils chemical, lubricant and specialties businesses are not part of the agreement. The acquisition will give Petrobras a firm foothold in Chiles fuel-distribution market, with a market share of 16 percent and 14 percent in the retail and industrial segments, respectively.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: August 9, 2008

Lan grows profits 7.4%

Profits of US$138.3mil have been posted by Lan Airlines of Chile for the first half of 2008, 7.4% improvement over the same period in 2007. Its flights have boasted high occupancy rates with demand strong across all its markets, both for cargo and for passengers.

Lan's operating income rose 34% to total US$2.15bil (passenger-based revenues rising 32.3%, cargo, 41%, and other items, 8%). Lan states that its operating costs rose 39.5% to total US$1.982bil by June 30, 2008, with the fuel rise being one of 77.8% to US$314.2mil.

Publication: SABI - Business News
Provider: South American Business Information
Date: August 2, 2008

Endesa Chile H1 profit doubles to US$266mn

Chilean generator Endesa Chile doubled its January-June net profit to 135bn pesos (US$266mn) compared to the 67.7bn pesos posted in 1H07, the company said in a statement.

The increase was attributed to a 3.6% rise in operating profits and a 56.3% increase in non-operating results because of improvements related to the company's activities in Brazil and GasAtacama holdings in Chile.

Revenues rose 25% to 1.08tn pesos compared to the 860bn pesos posted in 1H07. The increase was attributed to increased revenues from power sales in Chile, Colombia and Argentina. While physical power sales rose in Peru, revenues were negatively affected by lower average prices.

Ebitda for the first six months of the year rose 3.5% to 420bn pesos. Some 51% of company Ebitda for the period resulted from its activities in Chile and 30.7% from operations in Colombia. Peru accounted for 10% and Argentina followed with 8.3%.

Endesa Chile sold a total of 27.0TWh in the first half of the year, down 0.7% from the same period of 2007. The decrease was attributed to a to a conservation campaign launched in Chile, according to the statement.

Physical power sales in Argentina dropped 10% because of increased hydrology but increased 9% in Colombia and 6% in Peru.

Endesa generated 24.7TWh in the period, down 2.2% from 25.2TWh in 1H07. The decrease resulted from drier hydro conditions across the region compared to the same half of 2008.

Endesa Chile is controlled by Spain's Endesa through its Enersis subsidiary.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: July 31, 2008

Chile's vegetarian market expands

The myth that eating vegetables is boring no longer seems true in Chile. It seems that each month there are more vegetarian food products, stores, and restaurants, all featuring new options that may even attract the typical meat-eater. Photo by Roberto Silva, Santiago Times

“There were very few vegetarian food stores five years ago,” said César Sanchez, owner of the Diprovena vegetarian food store. “People had to look everywhere to find good products.”

Four years ago Sanchez created a vegetarian mail-order and delivery service. After his sales doubled within the first year, he realized the demand for the products was large and decided to try his luck opening a store of his own, which today has turned into the successful Diprovena.

“We can guarantee to serve different dishes than the rest of the restaurants of Santiago,” said Pilar Alamparte, owner of the vegetarian restaurant Unicornio. “We base our cooking on tofu and wheat without starch”.

Chilean vegans can find what they want , too, things like soy hot-dog meat, mayonnaise, salami, and cheese, all made from a vegetable base.


Chilean small and medium sized companies, who specialize in vegetable protein food products are expanding extremely rapidly. Effourt company was initially created for the production of vegan mayonnaise. The firm has now diversified into soy burgers and soy milk. These alternative food companies are developing new tasty products including mushroom, olive and red-pepper paté, chocolate soy milk and vegetable-based steaks.

Chile’s booming organic food market could well contribute to the growing vegetarian trend (ST July, 8).

Publication: Santiago Times
Provider: Chip News
Date: July 18, 2008

Cencosud projects 70 percent rise in internet sales

Retail giant Cencosud is expecting online sales to reach US$50 million by the end of this year, company officials said this week. Outlets such as Paris, Jumbo and Easy have improved websites, and were recently praised by the Chilean Internet security company Netprovider as some of the best retail stores online. The company's Internet sales growth is a result of the focus placed on improving the online sales process and improvements made to each of the stores’ websites, Cencosud sales manager Andrés Silva said.

Further indications of the company's expansion on the Internet can be seen in the growth of its online management department, which had fewer than 100 people in 2006 and now employs over 300.

Paris, Cencosud's first retail outlet to open up shop online, now accounts for more than half of the group's annual Internet sales. Their website, Paris.cl, launched in September 1999 and is expected to sell more than US$30 million this year. According to Silva, within four years the website will have the most sales of the entire Paris chain.

Jumbo is Cencosud’s chain of supermarkets that offers food and beverage products and is also a chain of restaurants. Its Internet sales are expected to triple this year compared to 2007, when it made close to US$20 million.

Easy, Concosud's chain of home appliance centers, is the youngest of the group's Internet players, having only been online since January of this year. "We didn't really know what would happen [with Easy] but it's been running for more than five months now and is growing at a rate of 50 percent each month," Silva said.

Publication: Santiago Times
Provider: Chip News
Date: July 9, 2008

AES Gener ups Angamos power supply deal with miner

Chilean generator AES Gener's EEA subsidiary, which is developing the 460MW Angamos coal-fired thermo plant, has modified its power supply deal with copper miner Minera Escondida, AES Gener told financial regulator SVS.

AES Gener has contracted 430MW of capacity from the plant to Minera Escondida and subsidiaries of the miner's operator BHP Billiton (NYSE: BHP), according to the statement.

The Angamos plant now will supply 340MW of capacity to Escondida, up from the 220MW contracted in March 2008.

In addition, AES Gener's Norgener subsidiary could transfer a 62MW power supply contract with Escondida to EEA, the generator said.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: July 7, 2008

Aguas Andinas launches takeover bid for Essal

Chilean water utility Aguas Andinas, controlled by Spanish group Agbar, has launched its takeover bid for southern water utility Essal, local paper Estrategia reported.

With a price of 162 pesos/share, Aguas Andinas plans to purchase up to 470mn shares in Essal, equivalent to roughly 75.9bn pesos (US$154mn). The shares represent 100% of the company's outstanding stock, the report said.

The offer is scheduled to end July 7.

On May 22, Spanish group Iberdrola agreed to sell 51% of Essal to Aguas Andinas for some 103mn euros (US$162mn).

With the purchase, the company practically reaches the maximum quota of client concentration established for Chilean water utilities by law.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: June 19, 2008

Salmon disease infects three more chilean farms

Chile’s problems with Infectious Salmon Anemia (ISA), a highly contagious fish virus that has plagued the country’s US$2.2 billion farmed salmon industry, appear far from over.Nearly a year after first confirming ISA’s presence in Chilean waters, the government’s National Fishing Service (SERNAPESCA) continues to expand its official list of outbreak sites.

The list now contains 24 fish farms – 22 in Region X and two father south in Region XI. SERNAPESCA added six of those production centers in just the past couple of weeks. The government body, meanwhile, increased Chile’s number of quarantined farms from 35 to 42. In total, Chile – the world’s second leading farmed salmon producer after Norway – boasts 827 salmon farms.

Ten of the infected farms belong to industry leader Marine Harvest, a Norwegian company. Four belong to Mainstream, also Norwegian. Due in large part to the ISA problems, both companies have seen their profits shrink in recent months (PT, May 9, 14).

The industry slowdown has resulted in large-scale layoffs. Just this month Japanese-owned Salmones Antarctica fired approximately 200 workers in Region XI (PT, June 3). The company let another 300 people go earlier in the year. In April Mainstream fired 260 workers in Quemchi, Chiloé (PT, April 18). One week earlier Marine Harvest shut its Puerto Montt-based Chinquihue processing plant, laying off more than 600 people (PT, April 15).

Publication: Santiago Times
Provider: Chip News
Date: June 13, 2008

Plaza group to expand mall operations in peru

Plaza Group, the Chilean-owned retail mall operator, hopes to become the largest mall operator in Peru by 2010. Plaza built its first international mall in November 2007, in the northern Peruvian city of Trujillo, and it plans rapid expansion in the neighboring country as part of a US$938 million investment in new malls in Chile and Peru.

Peru is seen as a land of opportunity by the Plaza Group, as there are currently no competing large mall operators in the country. Chilean competitor Parque Arauco had plans to build a US$40 million mall in Arequipa, Peru, but has since announced that it will reformulate the plans in response to the Plaza Group’s new projects.

According to Plaza President Sergio Cardone, the group is also studying potential projects in Argentina and Colombia. Cardone said that Plaza would “most likely” make Colombia its third country of operation, and was evaluating how best to enter the Colombian market.

Plaza Group is controlled by Falabella, a Chilean holding company that has a 59.5 percent stake. Falabella currently operates retail stores in Chile, Peru, Argentina, and Colombia.

Publication: Santiago Times
Provider: Chip News
Date: June 10, 2008

Saieh-rendic group buys another supermarket chain

The Saieh-Rendic group, Chile’s third-largest owner of supermarkets, announced Friday its purchase of the Ribeiro supermarket chain. This purchase represents the thirteenth acquisition made by the group, created in December by a partnership between businessman Alvaro Saieh and the Rendic family, Ribeiro - run by the Gonzalez family- has seven stores in the Santiago Metropolitan Region and a 0.2 percent of the national supermarket share.With this latest purchase, the Saieh-Rendic conglomerate, which also owns Farmacias Ahumada, now has close to 14.7 percent of the market, with around US$1.3 billion in annual sales.

Earlier this year the Saieh-Rendic group purchased the supermarket chains Los Naranjos in Region IV and Korlaet in Region II. The Saieh-Rendic’s presence in both Region V and the Santiago Metropolitan Region is increasing where it already owns the Bryc, Unimarc and Montserrat chains.

Still, the company’s market share is still well below D&S, which owns Líder, and Cencosud, which owns Jumbo. D&S and Cencosud control 33.5 and 31.3 percent of the market, respectively (ST, May 1).

SOURCE: LA TERCERA

Publication: Santiago Times
Provider: Chip News
Date: June 9, 2008

Parque Arauco to invest heavily in Colombia

Parque Arauco will invest US$200mil in entering the Colombian market with US$70mil of that total to be spent by the Chilean shopping-centre group on the Pereira mall and its 40,201 square metres of rentable space. Parque Arauco is controlled by the families Said and Abumohor and should inaugurate this first Colombian mall in the final quarter of 2009. In Chile, Parque Arauco will build the malls Quilicura (US$42mil, to open in May 2009) and Pajaritos (US$9mil, to open next month) as well as the Torre de Oficinas Cerro Colorado (US$35mill, to open in August 2008). In Peru, it will open three shopping centres - San Isidro, US$84mil; Arequipa, US$40mil; and the strip center Chorrillo, US$4mil before February 2010.

Publication: SABI - Business News
Provider: South American Business Information
Date: April 24, 2008

Chilean beer giant has its teeth in the rum market

A recently published ACNielsen market poll disclosed that, after less than ten months of marketing its Sierra Morena rum, Compania Cervecerias Unidas (CCU), Chile’s largest beer and beverage producer, has already taken control of 11.4 percent of the country’s rum market.

Compania Pisquera de Chile (CPCh), the subsidiary of CCU that controls all of CCU’s hard liquor products, claims it actually controls 18 percent of the market, not the 11.4 percent reported by the ACNielson poll. Company head Alvaro Fernandez told the Chilean daily El Mercurio that “CPCh’s statistics took into account sales in bars, discotheques, and convenient stores where as the ACNielsen poll is concentrated in supermarket sales.”

Morena is now the second largest selling rum on the Chilean market, second to Luksic group’s rum Mitjans, which controls 28.8 percent of the market. The third largest selling rum label in Chile is Venezuela’s Pampero rum, accounting for 7.2 percent of the market.

Rum sales in Chile have tripled in the past three years. In 2007, sales reached nearly US$80 million and now account for 18 percent of the total Chilean liquor market with 60 different brands.

CCU’s principal hard liquor is pisco, a Chilean brandy that accounts for 85 percent of CPCh’s sales. They are the biggest producers of pisco in Chile, owning 70 percent of the market with their Capmanario and Mistral labels.

However, pisco sales have declined over the years. In 2007, pisco’s market share dropped to 14.8 percent. Therefore, Fernandez emphasized the importance of rum as a major force in CPCh’s portfolio of hard liquors.

Publication: Santiago Times
Provider: Chip News
Date: April 17, 2008

Tubinger: the new brewery on the block

One of Chile’s newest—if not its newest—craft beers is Tubinger, owned, operated and conceived by Christoph Flaskamp, a German man very passionate about beer. He’s so passionate that he used to brew his own homemade ale in the backyard of his house during a time when beer-making ingredients such as hops were very hard to come by in Chile.

Passion drove Christoph into the beer industry. He was born in Germany, grew up in Chile, and studied in England. After his studies, he returned to Chile, where he worked as an English professor. He had always loved beer, and after he started brewing his own, he decided to make his passion his profession.

For Christoph, who learned his craft under the guidance of a German brew master, the tradition of beer became of utmost importance. “Beer has a very long and intricate tradition. It’s important to create beers that respect and honor the traditions originated by microbreweries before pasteurization and big-business brewing took over the market,” he said.

With ruddy cheeks, an extensive vocabulary to describe beers and an intricate knowledge of beer’s history, to me he seems to be the man who can and will forge the path toward getting Chileans not only to drink good craft beers—like Tubinger’s—but also to appreciate beer at the same level they appreciate a fine wine. I believe this because he did call me out on a few issues regarding my knowledge of beer and Chile. I’ll get to that later.

I asked Christoph for his thoughts on Compañía Cervecerías Unidas (CCU), Chile’s largest commercial brewery. CCU owns 86 percent of country’s beer market, including not only the major Chilean beers—such as the country’s two biggest beer brands, watery Cristal and Escudo—but also Royal Guard, Austral and Kunstmann. In addition, CCU has the license to produce beer brands like Heineken and Paulnar.

Since I have started this column, my mild distaste for CCU’s products has grown into hatred. It’s almost as if I have found a life calling in sharing with everyone just how bad CCU products and business practices are. Christoph agreed. “CCU is tricking all of Chile into thinking that they have diversified their products when in fact all the beers, regardless of their name and color, pretty much taste the same: like alcoholic water with a bit of coloring.” I added that Kunstmann was a sad excuse for a microbrewery.

This is where I was corrected. Christoph explained to me that Kunstmann actually forged the path for other microbreweries by reviving the tradition of quality beer production in Chile. “Before Kunstmann, Chile went through a long period where the only beer available was Cristal,” he said. “If it wasn’t for Kunstmann, none of us microbreweries would have any business.” He added, “When you drink a Kunstmann in Valdivia, the beer actually maintains the quality it had before the company owner sold out to CCU because the beer is brewed in a separate factory from CCU’s, while the Kunstmann you buy in Santiago is produced in CCU factories.”

So far, Tubinger has three beers on the market: a brown ale, a red ale and a pale ale. I tried the brown and pale ales, and they are both great. The brown ale is nice because it’s lighter than a stout but still has the earthy flavors that a stout carries. The Tubinger brown ale is a rarity because most brown ales taste like watered-down mild ale—even in England! Christoph told me he tried to “restore brown ale’s historic value as a dark ale with a large portion of roasted malt.” The taste has a strong hint of chocolate with a rounded, bitter aftertaste: wonderful beer!

As for the Tubinger pale ale, it’s refreshing and fruity without being too sweet. “Our pale ale is not like others that sometime add sweeteners that just result in too sugary a beverage,” Christoph said. “The fruitiness of our beer comes from top fermentation with brewers yeast fermented at high temperatures and, of course, a good dose of German Hallertaur hops.”

You can enjoy a Tubinger on tap at the Purammente Bar in Providencia on the corner of Bilbao and Miguel Claro. The bar is also where the biggest group of Santiago city cyclers meet in the early evening almost daily; they love their Tubinger! You can also find Tubinger at Jumbo supermarkets and select restaurants throughout Santiago

Publication: Santiago Times
Provider: Chip News
Date: April 12, 2008

Elsa enters beer business

Yesterday, in Puerto Varas, the Chilean bottling group Elsa, the national B-brand soft-drinks leader in Chile with products such as Rari (Cola and water), Ship and Cash, officially launched a flavoured beer brand called Volcanes del Sur for the premium artesanal sector. The product is aimed at the growing number of Chilean women who are drinking beer, says Andres Zuazagoitia, owner and general director of Elsa.

The firm is also looking to enter the traditional beer segment with Antillanca. The Chilean beer market is made up 90% of traditional beers and 10% by artesanal drinks. Elsa makes drinks for Lider supermarkes and also makes the brand Caricia for Ambrosoli.

Publication: SABI - Business News
Provider: South American Business Information
Date: April 8, 2008

Elsa enters beer business

Yesterday, in Puerto Varas, the Chilean bottling group Elsa, the national B-brand soft-drinks leader in Chile with products such as Rari (Cola and water), Ship and Cash, officially launched a flavoured beer brand called Volcanes del Sur for the premium artesanal sector. The product is aimed at the growing number of Chilean women who are drinking beer, says Andres Zuazagoitia, owner and general director of Elsa.

The firm is also looking to enter the traditional beer segment with Antillanca. The Chilean beer market is made up 90% of traditional beers and 10% by artesanal drinks. Elsa makes drinks for Lider supermarkes and also makes the brand Caricia for Ambrosoli.

Publication: SABI - Business News
Provider: South American Business Information
Date: April 8, 2008

Enersis to invest US$10bn through 2012

Chilean energy holding company Enersis (NYSE: ENI) plans to invest US$10bn from 2008-12 in the five countries in Latin America where it has operations, the company said in a statement.

Enersis will invest US$5.6bn to generate 2.32GW of new capacity of which 1.63GW will be constructed in Chile. The remaining US$4.4bn will go to improve the company's distribution businesses.

"It's one of the most ambitious investment plans we have presented in the last few years," Enersis president Pablo Yrarrázaval said in the statement.

In addition to Chile, Enersis operates in Argentina, Brazil, Colombia and Peru.

Enersis controls Chilean generator Endesa Chile. The holding company is in turn controlled by Spanish power company Endesa.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: April 3, 2008

Transelec to invest US$1.1bil before 2013

Transelec of Chile has announced investment of US$1.1bil up to 2012. The firm, controlled by Canada's Brookfield Asset Management, will split this five-year plan as follows, according to general director Andres Kuhlmann: US$500mil in trunk systems, US$240mil in sub-transmission and US$360mil in other systems such as energy injections for big (mining or electricity-generating) companies (Transelec already does business with Endesa, AES Gener and Carmen de Andacollo among others).

Publication: SABI - Business News
Provider: South American Business Information
Date: March 12, 2008

Embotelladora Polar buys into Ecuadorean Coke market

Yesterday, Embotelladora Polar of Chile announced an agreement via which it will buy 34.5% of Ecuador Bottling Company Corp (EBC), a holding company boasting 100% of manufacturing, bottling, distribution and sales rights on products of The Coca Cola Company in Ecuador. The firm controlled by the family Chadwick, boasting 12.4% of total Coca-Cola sales in Chile, will pay out US$64.3mil for the stake of just over a third. The deal should be done once the Ebitda for 2007 for EBC is known (by mid-March).

Ecuador will become Polar's fourth national market, the Chilean group already boasting filials in Argentina and Paraguay with 9.8% and 100% shares of said markets respectively (according to a report from January 2008 by Fitch Ratings). Polar's Chilean rivals are Embotelladora Andina, with its 53% share of the local Coke market and with operations in Brazil and Argentina, and Embonor, with over 35% of the Chilean Coke market and a 98% share of the Bolivian Coke market.

Publication: SABI - Business News
Provider: South American Business Information
Date: March 12, 2008

Besalco will expand its alliance with Spanish Dragados

At the moment, they are work partners for the Metro. Besalco, controlled by the Bezanilla family, after the new contract that signed in alliance with the Spanish Dragados for Transportes de Pasajeros Metro, affirmed to ESTRATEGIA that "it is studying and negotiating different contract possibilities in this new alliance".

The contract with Metro includes the construction of civil works in Manquehue Station and interstation tunnels in Escuela Militar; in addition the construction of civil works Tramo 3 in stations Plaza Maipu and Santiago Bueras, and interstations extension 5 Line Maipu. This contract, for being one of construction, does not imply investment on the part of the company, whereas by works will collect US$100 million approximately. It is possible to indicate that Dragados in Chile from 1998, and it has participated in urban concessions like SCL Airport, Central Freeway and Vespucio Norte Express. On the other hand Besalco, created in 1944, has concessions such as Variante Melipilla, Route Interportuaria Talcahuano-Penco, Penitentiary Infrastructure Group 1 and 2, and the Convento Viejo dam second stage, among others.

Publication: Estrategia
Provider: Estrategia
Date: March 7, 2008

Teck Cominco updates Quebrada Blanca Cu resource

Vancouverite Teck Cominco (TSX: TCK.A, TCK.B) has reported an inferred resource estimate of primary sulfide mineralization at its Quebrada Blanca property in Chile of 11Blb (4.99Mt) of contained copper and 450Mlb of molybdenum.

The resource in grades is 1.03Bt at 0.50% copper and 0.020% molybdenum, according to a Teck Cominco statement.

The company added that within the 1.03Bt resource, it has identified a higher-grade area beneath the existing sulfide pit with roughly 300Mt grading 0.55% copper and 0.020% molybdenum.

"That portion of the deposit could provide a substantial starter pit for a period of 5-10 years that would benefit from having been largely pre-stripped by ongoing mining of the supergene ore body," company CEO Don Lindsay said in the statement.

Teck Cominco acquired Quebrada Blanca with its purchase of compatriot company Aur Resources last year.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: March 5, 2008

Vik to open luxury hotel in Millahue

Next southern-hemisphere summer, the Spanish chain Vik will open its first luxury boutique hotel in Chile as part of its aggresive plan of internationalisation which also includes the purchase of two establishments in Punta Cana, the Dominican Republic, and the building of two others in Punta del Este, Uruguay.

The Chilean hotel Vik will open will be called the Vik Bodega and will be located in Millahue, the VI Region, featuring just 22 rooms. Details will be formalised soon. The family Vik has two hotels in Lanzarote, the Villa Vik (a 14-room five-star hotel) and the San Antonio (a very different type of hotel with 300-plus rooms but still carrying four stars). The family Vik also owns 26% of capital in Ifa Hotels.

Publication: SABI - Business News
Provider: South American Business Information
Date: March 4, 2008

IDC to invest US$18mn in El Tepual airport expansion

Concessionaire AAC-Icafal-Vecta, also known as IDC, will invest US$18mn in expansion works for Chile's El Tepual airport that serves southern city Puerto Montt, the country's public works ministry (MOP) said on its website.

Works will be carried out in parallel to the terminal's normal activities, as IDC will inaugurate the airport on February 19.

Scheduled to begin in late 2008 and end in the last quarter of 2009, works involve expanding the passenger terminal's surface to 9,900m2, doubling parking lot capacity, installing three new jet ways, and improving airport access, among others.

The works should consolidate El Tepual as Chile's second most important airport, as passengers arriving to the southern Los Lagos region grew 35% in 2007, up to 393,932 travelers.

Once works are completed, the new facility will create 440 new jobs.

Additional benefits are expected from subcontracts signed by the concessionaire and local providers of construction materials, tourist services and transport, among other sectors.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: February 18, 2008

Fasa completes takeover of Benavides chain

Chilean pharmacy giant Fasa formally completes its takeover of Mexican chain Benavides this Wednesday. According to the chief of planning and studies at Farmacias Benavides, Esteban Rigo-Righi, the chain will open 100 new pharmacies over the next few months at a cost of US$40mil.

Fasa wants to keep sales growth ticking along at 20%, a percentage made possible last year by the opening of 74 new outlets for a presence across 110 Mexican cities. Fasa will hold 95.62% of the Mexican company, a stake bought from the family Benavides, and plans to retain its name. Jaime Benavides Pompa will leave his place at the boardroom table in April and then the family will have no further direct role in the chain.

Publication: SABI - Business News
Provider: South American Business Information
Date: February 7, 2008

Cerveza austral to export premium beer brands

The company will market its premium Calafate, Yag·n and Patagonia brands in select locations. It has already made small incursions into the lager market in the aforementioned countries, and the plan is to expand its reach. Cerveza Austral President AndrÈs Herrera said “the idea is to be present in each country, in at least 30 specialized locales where our beers will be sold along with those of the rest of the world.”

Based in Punta Arenas, Region XII, the brewery began selling its products in the southern Argentine province of Santa Cruz in July of 2007. By the end of the year, it had expanded its presence to RÌo Gallego and the surrounding area, as well as Calefate. The goal for 2008 is to cover the whole province and claim 10 to 15 percent of the market there. The company currently sells some 200,000 hectoliters in the area.

Herrera said the company is considering entering the market in other Argentine provinces with their specialized brands, if they have a comparative advantage. The competition from local lagers would be quite strong, however.

In Chile, the plans are to strengthen the brewery’s presence. It currently makes up for 1.5 percent of the total beer sales in the country and 8.5 percent of the premium market. In 2007, the company sold 72,000 hectoliters, bringing in US$12 million — a 15 percent increase in total volume sold over 2006. The goal for 2008 is to sell 85,000 hectoliters and bring in US$15 million.

Publication: Santiago Times
Provider: Chip News
Date: February 7, 2008

AES Gener to modify Alto Maipo hydro project

Chilean generator AES Gener will modify its USD 600 million Alto Maipo hydro project as a result of consultations with local residents. The project entails the construction of two run-of-river plants including Alfalfal II in the Colorado sub-basin downstream from the existing Alfalfal I plant and Las Lejas plant near the confluence of the Maipo river and El Manzano marsh. The two plants will add 530MW of capacity to Chiles central SIC grid.

The changes will improve the environmental conditions of the project. The proposed solutions are technologically possible but will require more complicated engineering. All of the works previously planned for El Manzano zone will be relocated and moved 15km upstream. Works planned for the area include the machine house for Las Lajas plant. The two plants will be remotely run from an existing control center the company has for its Alfalfal 1 and Maitenes plants.

The construction of new roads into the mountain will be minimized and the new plans will use more tunneling machines. More than 95% of the works for the plants will be underground.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: February 5, 2008

Chile is 2nd biggest basic goods consumer in latin america

The average Chilean family spends US$66 per month on personal and home products, food, and beverages, according to a recent LatinPanel Research Study. Mexico leads the poll with average home spending of US$86 per month. Argentina trails Chile at US$34.

The study also revealed different overall spending patterns among citizens of differing socioeconomic backgrounds. For example, Peru’s richest spend twice what its middle class spends - US$457 versus US$237. Chilean households show a similar pattern - the higher- income homes spend US$684 while the lower- income homes spend US$433.

In Mexico and Venezuela the spending gap between rich and poor is smaller. “In Mexico all homes spend a lot and are preoccupied with labels,” stated researchers from study. Mexico’s high-income homes spend US$860 per month while lower income homes spend US$709.

The study was taken the first nine months of 2007 and considered 33,000 households in 15 Latin American countries.

Publication: Santiago Times
Provider: Chip News
Date: January 29, 2008

Chile: Suez, GNL Mejillones ink supply deal

The GNL Mejillones JV formed by Chiles state copper company Codelco and multinational energy company Suez Energy International (SEI) has signed an LNG supply contract with Suez for the LNG plant being built in Mejillones port. According to the deal, Suez will supply the JV with enough LNG to generate 400MW of thermo capacity from 2010-12. GNL Mejillones is investing nearly US$500mn in the project that will give Chiles northern grid (SING) greater security in the wake of natural gas restrictions from Argentina. The plant, fast-tracked for completion by the end of 2009, will use a temporary regasification tanker and initially will be able to degasify 5.5Mm3/d of natural gas. Three-year contracts have already been signed with miners Codelco, Escondida, Collahuasi and El Abra to supply gas to power 450MW of capacity.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: January 25, 2008

Chile ranks as the 8th most open economy in the world

For the fourth year in a row Chile ranks as the 8th most open economy in the world, according to a yearly study by the conservative, U.S.-based Heritage Foundation.

The study ranked Chile third among the 29 countries in the Americas, outpaced only by the U.S. and Canada. Countries outside the Americas that rank above Chile included Hong Kong, Ireland, Australia, Singapore, and New Zealand.

The Heritage foundation study uses ten economic variables to determine rank, including trade freedom, investment freedom, and property rights. The foundation also collaborated with other think tanks, including Chile’s conservative Liberty and Development Institute, in developing its ranking.

Hong Kong ranks as the most open economy in the world, a position it has held for 14 years. Singapore is in the second place position. These two economies, said the Heritage Foundation ranking, give individuals the greatest freedom to consume, invest and work -with little or no government taxation and control.

Chile’s weaknesses, according to the report, lie in its high income taxes and statistically lengthy procedure in closing a business. Tomas Flores, the key research economist for the study, stressed that Chile’s shortcomings relate to its income tax burden. “Because one is always taxed from the beginning, the state is an important partner in any business effort and therefore strips the investor of his freedom,” said Flores.

Publication: Santiago Times
Provider: Chip News
Date: January 17, 2008

Chile Enersis Eyes Additional 1,096 MW Capacity in Chile in 2010

Chilean largest electricity utility Enersis develops electricity projects with 1,096 MW installed capacity in Chile, planning to complete them by the end of 2010.

The ongoing projects will demand investments of nearly $1.0 bln (675.9 mln euro).

The said projects include San Isidro II that will have a total capacity of 377 MW by July 2009, whose investment is estimated at $229 mln (154.8 mln euro).

Furthermore, Enersis will soon complete a small 9.0 MW electricity plant, called Ojos de Agua, worth $20 mln (13.5 mln euro).

The other projects include the coal-fired expansion Bocamina II of the Bocamina thermoelectric plant in Biobio, worth $620 mln (419.1 mln euro), and the 240 MW Quintero thermal plant. The two projects are planned for 2010 and 2009, respectively.

Enersis also participates in the construction of the liquefied natural gas (LNG) port terminal in Quintero, which will start operations in the second half of 2009. Its estimated capacity stands at 9.0 million cu m.

Enersis controls the biggest electricity distributor on the local market Chilectra and the utility Endesa Chile.

Publication: Business Digest
Provider: AII Data Processing Ltd.
Date: January 17, 2008

Chile: HidroAysen issues CSR Data on studies for five plants in Chile

The HidroAysen venture issued the data on its corporate and social responsibility (CSR) studies for its proposed five hydropower projects in Chile that would have combined installed capacity of 2,750MW. More than USD 6 Million was spend on the CSR studies by HidroAysen, which is a joint venture of two leading energy companies in the country – Endesa Chile (51%) and Colbun (49%).

The studies were undertaken over 2006-7 and approximately 187,000 hours of work were investigated in the research undertaken by 370 specialists to investigate socio-environmental and economic issues. Public review of the information, data and methodology will be possible at a series of centres already set up for public consultation on the scheme.

HidroAysen hopes to commence the procurement process from 2009 and construction is targeted to be completed eight years later. The overall scheme consists of five plants on two rivers two on the Baker river and three on the Pascua river with annual average electricity production of 18,430GWh. All five schemes would require reservoirs to be built.

Publication: Euclid Infotech - Utilities News
Provider: Euclid Infotech
Date: January 17, 2008

Hornitos, Quilleco hydro projects file for CDM registration

Two hydro projects being developed in Chile have filed Clean Development Mechanism (CDM) registration requests with the UN Framework Convention on Climate Change (UNFCCC), according to documents posted on the agency's website.

Chilean hydro generator Hidroeléctrica Guardia Vieja (HGV) submitted a CDM registration request for the 55MW run-of-the-river plant being developed in central region V on the Aconcagua river.

The US$62.8mn plant will reduce CO2 emissions by 110,160t/y, according to the documents.

Chilean generator Colbún, meanwhile, submitted a CDM registration request for the 70MW Quilleco plant being developed in central-southern region VIII.

The US$79.6mn plant will reduce CO2 emissions 172,176t/y.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: January 11, 2008

Air Comet and Sky intensify Chilean domestic battle

Chilean carriers Air Comet Chile and Sky Airline are both opening new domestic connections, further inflaming a fierce competitive battle between the two.

Air Comet Chile, which is owned by Spanish tour company Marsans, has announced new routes to Temuco, Balmaceda and Puerto Natales.

Newly-appointed Air Comet commercial director Isabel Bachler says that, while Puerto Natales is a twice-weekly seasonal extension to the Punta Arenas route, Temuco and Balmaceda will be served daily all year.

"This is one more step to raise our current domestic market share from its current 17% to our strategic objective, which is 30%," she says.

Air Comet also plans to add Lima and Buenos Aires to its network of flights this year.

Chile's Sky Airline has responded by opening its own seasonal route to Puerto Natales, as well as launching daily flights to Valdivia and Osorno - new destinations on the airline's network.

Chilean market-leader LAN Airlines last year introduced a low-fare scheme on its local routes.

Publication: Reed Business Information - Air Transport Intelligence
Provider: Reed Business Information, The Flight Group
Date: January 9, 2008

Doggi's: Hot dog group branches out

Chile fast food group Doggi’s is set to expand the second half of 2008 with a new business concept based around ice cream and snacks. The group currently administers their namesake hot dog restaurant chain (Doggi’s) as well as Mamut (a family restaurant chain) and Sanguchazo (a sandwich chain).

The home-grown fast food group plans to open 25 new restaurants in 2008 bringing their chain to a total of 140 locations. Sixty percent of the new operations will be in Santiago and 40 percent in regional areas. The company already has national coverage, but plans to consolidate its position in Regions VII and VIII.

Doggi’s closed 2007 with US$60 million in sales; the company aims for US$72 million in sales in 2008.

“2007 was a great year, with strong expansion through the opening of new branches and an important increase in sales in our current network,” said general manager Mauricio Taladriz. “The opening of our 100th branch was emblematic, and consolidates us as the brand with the greatest coverage in the country.”

Taladriz said that there is no secret to their success: “We reorganized the businesses under a structure that permits us develop our current brands, without discarding the incorporation of new businesses to our portfolio.”

Publication: Santiago Times
Provider: Chip News
Date: January 8, 2008

EPA looks to invest US$40mn to keep up with bi-oceanic corridor

Northern Chile's Arica port concessionaire EPA plans on investing US$40mn through 2009 on infrastructure development, local publication Marítimo Portuario reported.
The initiative comes as the port prepares to cope with the expected increase in cargo resulting from the construction of a bi-oceanic corridor, known as Corredor Bioceánico Norte, connecting Arica, Bolivia and Brazilian port Santos.

Works will include upgrading the terminal's infrastructure, improving technology to streamline services and implementing more competitive rates.

The corridor will increase the amount of cargo coming from Brazilian states Amazonas, Acre, Rondônia and Mato Grosso, with a total of some 23mn residents, the publication quoted EPA general manager, Mario Moya, as saying.

Publication: Business News Americas - English News
Provider: Business News Americas
Date: January 2, 2008