FDBusiness.com

Heineken and China Resources Join Forces

 Breaking News
  • Lantmännen Expands its Oats Capacity Lantmännen, the Nordic region´s leader in agriculture, machinery, bioenergy and food products, has signed an agreement with Tate & Lyle, the UK-based global food and beverage ingredients and solutions provider, for the acquisition of a production facility in Sweden. The acquisition gives Lantmännen opportunities to expand its oats capacity and invest in additional processing of [...]...
  • UK Food and Drink Exports Growth Slow to a Crawl in 2018 The Food and Drink Federation (FDF) has published analysis showing that food and drink exports have increased by only 2.5% to £22.6 billion from January–December 2018, compared to the same period in 2017, down from 9.7% growth in the previous year. This slower growth was seen in both exports to EU markets, up 4.3% in [...]...
  • AB InBev Changes Name in the UK AB InBev has changed the name in of its UK and Irish business to Budweiser Brewing Group UK&I and opened a new London headquarters. Now under the guidance of new president Paula Lindenberg, Budweiser Brewing Group UK&I has been growing by double-digits in the UK in recent years. In addition to Budweiser, the brands portfolio [...]...
  • New Global Chief at Pilgrim’s Pride Pilgrim’s Pride Corporation, a worldwide leader in poultry and prepared foods and the owner of Northern Ireland-based Moy Park, has appointed Jayson Penn, formerly President of Pilgrim’s USA, to succeed Bill Lovette, as President and Chief Executive Officer of Pilgrim’s Pride. Bill Lovette will remain available to provide strategic advisory services to the company through [...]...
  • Mondelēz International Partners With Food Business Incubator Mondelēz International has announced a partnership with The Hatchery Chicago, a non-profit food business incubator, as it ramps up its innovation efforts to lead the future of snacking. The partnership is one of several investments the company is making as part of SnackFutures, the company’s innovation and venture hub aimed at unlocking snacking growth opportunities [...]...

Heineken and China Resources Join Forces

Heineken and China Resources Join Forces
November 07
11:47 2018

Heineken has signed definitive agreements with China Resources Enterprise (CRE) and China Resources Beer (CR Beer) to create a long-term strategic partnership for Mainland China, Hong Kong and Macau. Heineken will become CRE’s 40% minority partner in holding company CRH (Beer), which controls CR Beer, the undisputed market leader in the world’s largest beer market, China. The terms of the signed definitive agreements are in line with the non-binding agreements previously announced on 3 August 2018.

As part of the strategic partnership, Heineken China’s current operations will be combined with CR Beer’s operations and the Heineken brand in China will be licensed to CR Beer on a long-term basis. Combined, these transactions will result in a net investment of €1.948 billion by Heineken.

Jean-François van Boxmeer, chief executive and chairman of Heineken.

China’s beer market, the world’s largest beer market by volume, is now the second largest premium beer market globally and is forecast to be the biggest contributor to premium volume growth in the next five years, driven by its rapidly growing middle class. Profitability of the Chinese beer market is expected to improve significantly, driven by premiumisation, demand for international beer brands and cost optimisation.

Jean-François van Boxmeer, chairman and chief executive of Heineken, comments: “I am pleased we have quickly come to definitive agreements with CRE and CR Beer to join forces in China. Our long-term strategic partnership will help Heineken to significantly expand the availability of the Heineken brand, and will strengthen CR Beer’s offering in the rapidly growing premium beer segment in China. We look forward to growing together by leveraging Heineken’s global reach and marketing capabilities to help accelerate the international development of CR Beer’s Chinese beer brands worldwide.”

If regulatory approval is successfully obtained, the transaction is expected to complete in 2019. Upon completion Heineken’s pro-forma net debt/EBITDA (beia) ratio is expected to slightly exceed the target of 2.5x. The Netherlands-based brewing giant remains committed to return to the long-term target of below 2.5x.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements