Heineken And Asia Brewery To Form Joint Venture In Philippines

Tuesday, June 14th, 2016 | 1258 Views


Dutch beer maker Heineken has signed an agreement with Asia Brewery to create a new joint venture in the Philippines. The deal will form a new company called AB Heineken Philippines which will brew Heineken brands.

The agreement is expected to be finalised in the fourth quarter of the year and will see the new company adopt Heineken’s global policies and approaches towards supply, local sourcing, water management, employee healthcare and community investment, according to the Dutch brewer.

Heineken will help to further drive premiumisation of its brand portfolio, while the two breweries that Asia Brewery currently owns in the cities of Cabuyao and El Salvador will be upgraded so that they can facilitate production of Heineken products. In the meantime, Asia Brewery will start to distribute Heineken and Tiger in the Philippines.

Heineken Asia Pacific president Frans Eusman commented: “This joint venture with Asia Brewery in the Philippines represents a good business opportunity for Heineken. It increases our exposure to another market in the region with strong growth potential.”

Lucio C Tan, chairman and chief executive officer of Asia Brewery, 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.”

 

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