Heineken named preferred bidder for two breweries in Ethiopia
Amsterdam - Heineken N.V. today announced that the government of the Federal Democratic Republic of Ethiopia has named the company as the preferred bidder for the Bedele and Harar breweries. The winning bids for the breweries were US$85 million and US$78 million, respectively. Heineken will now work with the government to finalise the transaction. The decision follows Heineken’s participation in the public auction for the two breweries.
Commenting on today’s announcement, Tom de Man, President of Africa and Middle East for Heineken, said:
“We are delighted that our offer to acquire these two breweries has been selected as the winner by the Ethiopian Privatization and Public Enterprise Supervising Agency. This transaction represents another important step in Heineken’s strategy of increasing its exposure to emerging markets and we look forward to working with the Ethiopian government to grow the Ethiopian beer market and economy. Ethiopia is one of Africa’s most promising beer markets and our expansion into this market underlines our commitment to Africa and strengthens our platform for continued growth in the region.”
The two breweries have a combined market share of 18% with brands such as Bedele, Harar, Hakim Stout and Harar Sofi (malt).
Ethiopia is Africa’s second most populated country with 85 million people and its beer market (3 million hectolitres in 2010, source Plato) grew approximately 20% per year over the past 5 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 neighbouring countries, 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.
Heineken is one of the world’s great brewers and is committed to growth and remaining independent. The brand that bears the founder’s family name – Heineken – is available in almost every country on the globe and is the world’s most valuable international premium beer brand. The Company’s aim is to be a leading brewer in each of the markets in which it operates and to have the world’s most valuable brand portfolio. The Company operates 140 breweries in more than 70 countries and sold 205 million hectolitres of beer on a 2010 pro-forma basis. Heineken is Europe’s largest brewer and the world’s third largest by volume. Heineken is committed to the responsible marketing and consumption of its more than 200 international premium, regional, local and specialty beers and ciders. These include Amstel, Birra Moretti, Cruzcampo, Dos Equis, Foster’s, Kingfisher, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate, Tiger and Zywiec. On a 2010 pro-forma basis, including FEMSA Cerveza, revenue totalled €17 billion and EBIT (beia) was €2.7 billion. The average number of people employed is more than 70,000. Heineken N.V. and Heineken Holding N.V. shares are listed on the Amsterdam stock exchange. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on the Reuter Equities 2000 Service under HEIN.AS and HEIO.AS. Most recent information is available on Heineken’s website: http://www.heinekeninternational.com.
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