Heineken has completed the acquisitions of the Bedele and Harar breweries from the government of the Federal Democratic Republic of Ethiopia for $85m and $78m respectively. The transactions follow Heineken’s participation in the public auctions for the two breweries.
The acquisitions reflect Heineken’s strategy of increasing our exposure to and growth from developing markets. With brands such as Bedele Premium, Bedele Special, Harar, Hakim Stout and Harar Sofi (malt), the two breweries have a combined market share of 18% in the Ethiopian beer market.
Ethiopia is Africa’s second most populated country with 85 million people and its beer market (3 million hectolitres in 2010) grew approximately 20% per year over the past five years, compared to a GDP growth of 8%. Beer and non-alcoholic malt consumption in Ethiopia was approximately 4 litres per capita in 2010, which is well below the global average of 27 litres and below beer consumption in other countries in the region, such as Tanzania (7 litres), Uganda (9 litres) and Kenya (10 litres). In addition to a fast growing population and a developing beer market, the country’s political stability and improving economy, make Ethiopia a promising, long-term growth market for Heineken in Africa.