KIRIN PURCHASE
Heineken takes on AB InBev in Brazil
The Dutch brewer plans to buy the loss-making Brazilian breweries of Kirin Holdings, closing the door for the Japanese company's South American venture
Tokyo/Brussels — Heineken, the world’s second-largest brewer, agreed on Monday to buy the loss-making Brazilian breweries of Japan’s Kirin Holdings to boost its presence in the world’s third-biggest beer market. The Dutch brewer will have a share of about 19% in Brazil, behind clear market leader Anheuser-Busch InBev (AB InBev). Including debt, Heineken said it would pay €1.025bn. For Kirin, it marks a departure from the Brazilian market. The firm paid about $3.9bn in 2011 for 12 breweries. The business has subsequently lost market share and seen raw material costs rise. Kirin said the unit made an operating loss of 284-million reais ($91m) in 2016. Brazil’s economy appears set to enter a third year of recession in 2017, but Heineken said its beer market was attractive in the longer term, with a premium segment growing faster than the market as a whole. The acquisition will increase Heineken’s presence in the north and northeast of Brazil. Heineken already has five breweries in the ...
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