Soft drinks company Postobon has received approval from Colombia's financial regulator to produce and sell Heineken beer in the country, under a partnership with Heineken's Chilean affiliate Compania Cervecerias Unidas (CCU).

This move is expected to increase competition in the Colombian beer market, reported Reuters, citing regulator.

Earlier in November 2014, CCU formed a 50-50 joint venture (JV) with Postobon to enter into the nation's beverage market.

Postobon president Fernando Miguel Escobar previously said: "Using our great strength distribution, expand product offerings to our customers, and with emphasis, we will look at high-value brands perceived by consumers.

"Thus the partnership with CCU identified the opportunity to enter the beer market with a clear growth potential and where we enter products and brands of the highest quality, motivate and inspire the Colombian consumer. "

The JV Central Cervecera de Colombia will produce, market and distribute beers, and malt-based non-alcoholic beverages in Colombia.

It will see around $400m in investment from CCU and Postobon over the next three or four years.

The companies previously announced plans to build a beer production plant in the country.

The proposed beer facility is expected to create 1,000 jobs during construction and 1,800 direct and indirect jobs when operational.

Postobon is the largest biggest non-alcoholic distributor in Colombia and CCU is controlled by Heineken and holding firm Quinenco.

Image: CCU formed a 50-50 joint venture (JV) with Postobon, to enter Colombian beer market. Photo: courtesy of CCU S.A.