Amsterdam, 27 May 2016 - Heineken International B.V. (HEINEKEN) has today signed a joint venture agreement with Asia Brewery Incorporated (Asia Brewery, Inc.). Asia Brewery, Inc. is a large beverage producer in the Philippines and is owned by LT Group, Inc. (LTG), a listed company with a diversified portfolio of consumer-focused businesses.
Under this agreement, a new joint venture company, AB HEINEKEN Philippines Inc., will be formed. HEINEKEN will be driving further premiumisation of the brand portfolio. The two breweries which Asia Brewery, Inc. currently owns in Cabuyao and El Salvador will be upgraded so that they can brew HEINEKEN brands. In the meantime Asia Brewery, Inc. will start to distribute Heineken® and Tiger in the Philippines.
AB HEINEKEN Philippines Inc. will implement HEINEKEN's global policies and approaches in relation to supplier code, local sourcing, water management, employee healthcare and human rights, community investment and responsible alcohol marketing.
Frans Eusman, President of HEINEKEN Asia Pacific, said: "This joint venture with Asia Brewery, Inc. 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 LTG 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."
The transaction is subject to customary closing conditions and operations are expected to commence in the 4th quarter of 2016. Financial terms are not disclosed.
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Editorial information:
HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a powerful portfolio of more than 250 international, regional, local and specialty beers and ciders. We are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business and delivers value for all stakeholders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ approximately 73,000 people and operate 167 breweries, malteries, cider plants and other production facilities in more than 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on HEINEKEN's website: www.theHEINEKENcompany.com and follow us via @HEINEKENCorp.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: HEINEKEN International via Globenewswire
