Heineken wants to take on AB InBev, but it will be pricey for the Dutch brewer
London — Heineken, the world’s second-largest brewer, wants to challenge market leader Anheuser-Busch InBev in one of its key markets — and that is going to cost the Dutch brewer some lost profit in the near term. The operating profit margin would expand about 25 basis points in 2018, below the target it had for past years, the brewer on said Monday, warning of a headwind as it integrated a business in Brazil that it bought from rival Kirin for 2.2-billion real ($666m). Through the acquisition, the Dutch company became the second-largest brewer in that South American country, where Kirin stumbled amid competition with AB InBev, which controls about two-thirds of the market. Heineken’s namesake brand had double-digit volume growth in that market in 2017, which is improving after a slump caused by a currency devaluation and political upheaval. The integration of the unit was progressing "very well" and the dilutive impact on profit was less than the company first expected, chief finan...
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