Asia Brewery, Heineken ink PH beer venture
TYCOON Lucio Tan-led Asia Brewery Inc. signed on Friday an agreement with Dutch beer brewer Heineken International B.V. to form a local venture that will brew Heineken brands.
A new joint venture company, AB HEINEKEN Philippines Inc., will be formed, adding a premium brand as a new driver to Asia Brewery’s beer portfolio.
The two breweries which Asia Brewery currently owns in Cabuyao and El Salvador will be upgraded so that they can brew HEINEKEN brands, parent firm LT Group Inc. disclosed to the Philippine Stock Exchange.
In the meantime Asia Brewery Inc. will start to distribute Heineken® and Tiger in the Philippines.
HEINEKEN is the world’s most international brewer with a portfolio of more than 250 international, regional, local and specialty beers and ciders. It operates 167 breweries, malteries, cider plants and other production facilities in more than 70 countries.
The local venture is seen to implement HEINEKEN’s global policies and approaches in relation to supplier code, local sourcing, water management, employee healthcare and human rights, community investment and responsible alcohol marketing.
Frans Eusman, president of HEINEKEN Asia Pacific, said: “This joint venture with Asia Brewery, Inc. in the Philippines represents a good business opportunity for HEINEKEN. It increases our exposure to another market in the region with strong growth potential.”
LTG chair Lucio Tan said: “Our local knowledge and distribution network combined with the brewing and marketing expertise of HEINEKEN will be able to deliver quality beer brands and an exceptional experience for our consumers.”
The transaction is subject to customary closing conditions and operations are expected to commence in the 4th quarter of 2016. Financial terms were not disclosed.
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