Heineken strikes a $3.1bn deal with China's largest brewer

By Laura Mullan
Heineken NV is set to buy a $3.1bn stake in the parent of China’s largest brewer, China Resources Beer Holdings, as it takes on its rival AB InBev in...

Heineken NV is set to buy a $3.1bn stake in the parent of China’s largest brewer, China Resources Beer Holdings, as it takes on its rival AB InBev in the country.

Through the agreement, the Dutch brewer will gain a 40% stake in the firm, a strong distribution network in China, and greater access to what is the world’s largest beer market.  

China Resources Enterprise, which owns China Resources Beer, will also acquire approximately 5.2mn Heineken shares for $537.5mn.  

SEE ALSO:

Heineken CEO and Chairman of the Executive Board, Jean-François van Boxmeer, said: "We very much look forward to joining forces with CRE and CR Beer, the undisputed market leader in China.

“We believe that our strong Heineken brand and marketing capabilities, combined with CR Beer's deep understanding of the local market, its scale and best-in-class distribution network will create a winning combination in the growing premium beer segment in China.” 

China’s beer market, the world’s largest beer market by volume, is now the second largest premium beer market globally.

The premium category has grown by double digits annually since at least 2012, according to data from Euromonitor, driven by the country’s rapidly growing middle class. 

Through the deal, China Resources Beer — maker of the country’s best-selling Snow beer brand — will gain exclusive rights to use Heineken brands in mainland China, Hong Kong and Macau. 

“With Heineken’s long heritage and world-class iconic brand portfolio, along with our leading presence and deep understanding of China, we believe we can win together in this new era of the Chinese beer market, in which the premium segment will become increasingly important,” said Chen Lang, the chairman of China Resources Enterprise.

Share

Featured Articles

Ahold Delhaize Targets Sustainability & Omnichannel Goals

Multinational food business Ahold Delhaize prioritises sustainability and omnichannel innovation as part of its new plan for financial and strategic goals

US Bird flu Turns Spotlight on Milk Pasteurisation

As bird flu sees sales of raw milk spike, we look at the work of Tetra Pak, a giant in the world of pasteurisation.

Nestlé 'Meeting Sustainability Targets on Nescafé Coffee'

Nestlé is meeting targets on sustainably-sourced Nescafé coffee, & has donated 21mn plants as part of global ESG initiatives, a company report claims

Coffee Prices Soar as Extreme Weather Hits Brazil & Vietnam

Drink

Guinness & Carlsberg Back Drought Resistant Grain for Beer

Drink

Tyson Foods Shares Plummet in Face of Costs & Inflation

Food