Minetti, a Cordoba-based company, sold a portion of the Bella Vista sugar mill to Coca-Cola of Salta.

Salta Refrescos SA—the Coca-Cola bottler—and the Córdoba-based company José Minetti signed a long-term agreement yesterday, Tuesday, involving the sale of a portion of the Bella Vista sugar mill in Tucumán and the continuation of a strategic production relationship.

The transaction, as LA VOZ was able to confirm exclusively from sources with knowledge of the deal, strengthens the buyer's vertical integration into its industrial sugar supply chain, which is key to the production of the North American multinational's beverages. It also involves the transfer of approximately 600 employees.

The transaction involves dividing the sugar mill's property: Salta Refrescos (SRSA) acquires the sugar industrial sector—including facilities, fixed assets, and personnel—to produce industrial sugars.

Minetti retains the bioethanol distillery and dehydrator, in addition to continuing its fractionated sugar business under the Fronterita, Dul-C, and Bella Vista brands, which are available on shelves in various provinces.

The Salta-based bottling company will obtain its sugarcane supply through a manufacturing contract with Minetti, which guarantees a supply of raw materials for several years.

Of the sugar produced, Salta Refrescos will retain 40% for industrial use, while Minetti will retain 60% for retail use.

The molasses generated in the process will be sold to Minetti, a company that will use it for bioethanol production, with the possibility of doubling its capacity if it adds molasses from the Famaillá mill, also owned by Salta Refrescos.

The transaction amounts to more than US$30 million. Approximately US$2 million will be deposited in a court account to guarantee payments to unsecured creditors in Minetti's bankruptcy proceedings. The remainder will be used for working capital, investment in productive assets, and liability reduction.

An important detail is that SRSA bottles beverages for several Argentine provinces and belongs to the multinational Arca Contal, which has a significant presence in Mexico and several states in the United States. It is the second-largest Coca-Cola bottler globally.

This agreement "replicates a successful previous experience between the two companies and aims to ensure growth, productive efficiency, and sustainability in the sugar and alcohol sector in the Northwest Region," the sources indicated.

As part of the agreement, Minetti agrees to guarantee the supply of sugarcane to the Bella Vista sugar mill. This is because Arca Continental is a foreign company and cannot own its own land for production.

This includes the delivery of 270,000 tons of sugarcane per harvest between 2025 and 2032, from owned, leased, or managed lands. The delivery will be staggered over the five harvest periods, ensuring the continuity of the industrial process.

Likewise, Minetti will collaborate to acquire sugarcane from third-party suppliers through its Purchased Sugarcane department to meet milling needs. The purchasing party will actively participate in setting prices and terms when contracting this sugarcane.

The seller's obligations also include compliance with all applicable environmental, labor, tax, and safety regulations, as well as ensuring that the lands from which the sugarcane originate adhere to good agricultural practices. These conditions are part of a maquila contract, an updated version of which was signed by both parties.

If necessary, the parties will request authorization from the National Competition Defense Commission (CNDC) to validate the transfer under the terms of Law No. 27,442. The agreement includes a mechanism for the restitution of the property if the transfer is not approved by the competent authorities through a final judicial or administrative resolution.

Both Minetti and SRSA agree not to exchange money for the services stipulated in the environmental agreement, both parties recognizing that the availability of land for waste disposal was an essential condition for closing the transaction.

"This agreement reflects a complex and strategic transaction that seeks to ensure the continuity of sugar production in Tucumán, while establishing sustainable environmental management mechanisms and guaranteeing the supply of raw materials," they told this outlet.

The transaction between José Minetti and Salta Refrescos not only represents a transfer of assets, but also a joint commitment to maintaining long-term industrial, environmental, and production standards, they emphasized.