The battle of the beers in Brazil as Heineken takes on Anheuser-Busch InBev
London — Heineken, the world’s second-largest brewer, wants to challenge leader Anheuser-Busch InBev in one of its key markets — and that is going to cost the Dutch brewer some lost profit. The operating profit margin will expand about 25 basis points in 2018, below the target it had for past years, the brewer said on Monday, warning of a headwind as it integrates a business in Brazil that it bought from rival Kirin for 2.2-billion real ($666m). The stock fell 2.2% as of 11.31am in Amsterdam. The Dutch company became the second-largest brewer last year in South America’s largest economy after Kirin stumbled amid competition with AB InBev. Heineken’s namesake brand had double-digit volume growth in Brazil in 2017, which is improving after a slump caused by a currency devaluation and political upheaval. The integration is progressing "very well" and the dilutive impact on profit is less than the company first expected, chief financial officer Laurence Debroux said on a call with repor...
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