FDBusiness.com

Heineken to Become Second Biggest Beer Business in Brazil

 Breaking News
  • World’s Most Modern Snack Plant Begins Operations in Finland The world’s most modern dairy snack plant has commenced operation at Valio Riihimäki in Southern Finland. The snack plant is the largest single investment in Valio’s history. Construction of the new snack plant began in 2014 and took about three years. The area of the plant building is approximately 20,000 square metres. The plant is [...]...
  • FrieslandCampina Sells Fruit Juice Business The Dutch investment company Standard Investment is acquiring Riedel, the fruit juice business of FrieslandCampina, for an undisclosed sum. Based at Ede in the Netherlands, Riedel has a turnover of about €125 million and employs 200 people. Completion of the transaction is expected before the end of 2017. Earlier this year, FrieslandCampina announced that it would [...]...
  • LacPatrick is Cream of the Crop in UAE LacPatrick, the international dairy co-operative, has secured over £1 million of sales of its LP spray dried whole milk and skimmed milk powder in the United Arab Emirates (UAE), following participation at the Gulfood exhibition in February 2017. LacPatrick is one of Northern Ireland’s major manufacturing employers, employing over 300 staff across its Ballyrashane, Artigarvan [...]...
  • Tate & Lyle Launches CLARIA® Instant Functional Clean-Label Starches Tate & Lyle, a leading global provider of food ingredients and solutions, has announced a further expansion of its line of CLARIA® Functional Clean-Label Starches with the introduction of two new instant starch products: CLARIA® Instant 340 and 360. As claims such as ‘smooth’, ‘luscious’ and ‘velvet’ continue to grow, manufacturers are eager to develop textures [...]...
  • Reveal Impact – Ardagh Group to Launch a Two-Stage Thermochromic Solution Reveal Impact features combined temperature-sensitive inks with a twist. The new solution for aluminium cans uses two different thermochromic inks, which both boast the same colour when cooled down. However, once the can gets warmer again, one colour disappears quicker than the other, revealing a hidden message to the consumer. The revealed message surprises the [...]...
  • HKScan Opens New €80 Million Poultry Plant HKScan, the Nordic meat group, has just opened its new, state-of-the-art poultry unit at Rauma in Finland. Valued at over €80 million, the new facility is the largest investment in HKScan’s history. Indeed, the state-of-the-art Rauma unit ranks among the most significant investments in the history of the Finnish food industry. Jari Latvanen, president and chief [...]...

Heineken to Become Second Biggest Beer Business in Brazil

Heineken to Become Second Biggest Beer Business in Brazil
February 14
10:48 2017

Heineken has agreed to acquire Brasil Kirin, one of the largest beer and soft drinks producers in Brazil, from Kirin Holdings of Japan for €664 million. The transaction will transform Heineken’s existing business across Brazil by extending its footprint, increasing scale and further strengthening its brand portfolio. On closing, Heineken will become the second largest beer company in Brazil, with a stronger commercial platform from which to capture future profitable growth in an exciting beer market.

Brazil is the fifth largest country in the world with over 200 million people. Beer volume in 2015 was 139 million hectolitres, making it the third largest market globally. Whilst the macroeconomic environment has been challenging over the last few years, the longer term fundamentals of the Brazilian beer market are highly attractive supported by a growing population and a positive GDP outlook. In addition, the premium segment of the beer market, which has outperformed the broader beer market in recent years, has a relatively low share compared to many other markets, providing a compelling and attractive opportunity for future growth.

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

Brasil Kirin is a large beer producer in Brazil, operating 12 production facilities with its own distribution network. It has a particularly strong presence in the North and North East, where Heineken currently has less exposure. It owns an extensive portfolio of beer brands and its share of the Brazilian beer market in 2015 was c.9%. The portfolio includes Schin, one of Brazil’s largest brands covering the mainstream and value segments, as well as the Devassa brand. Furthermore, it owns the speciality brands Baden Baden and Eisenbahn, which will complement Heineken’s existing premium portfolio.

Brasil Kirin also has a soft drinks business comprised of carbonated drinks, bottled water and other beverages. The soft drinks portfolio, which has around 2%1 market share, includes the iconic Itubaína brand.

Jean-Francois van Boxmeer, chairman and chief executive of Heineken, comments: “This transaction marks a step-change in scale in an exciting beer market, building on our success to date in the premium segment and strengthening our platform for future growth. It reiterates our commitment to the Brazilian market and confidence in our ability to generate attractive returns over the long-term across all segments of the market.”

Heineken expects to deliver significant cost synergies from the acquisition through production efficiencies, including logistics and brewery optimisation, and through optimising selling, general and administrative expenses. However, the transaction is likely to be dilutive to Heineken’s margin in 2017.

Completion of the acquisition is subject to customary regulatory approvals and is expected in the first half of 2017.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2017drinktec
  • September 13, 2017FI Asia
  • September 19, 2017PROCESS EXPO 2017
  • September 22, 2017Global Summit on Food & Beverages
AEC v1.0.4

The Magazine

F&D Business Preferred Suppliers

Advertisements