CHINA: Heineken breaks ground on new brewery
Heineken has two other breweries in China
Heineken has started construction on a third Chinese brewery as it aims to secure stronger margins in the high-growth market.
The site, which is expected to have an 8.5m-hectolitre annual capacity, is in Jiashan County, Zhejiang Province, 60km south-west of Shanghai. Workers broke ground last week and Heineken hopes to start production by the end of the year.
The greenfield brewery adds to Heineken's presence in China, which includes breweries on the southern island of Hainan and in Guangzhou. The facilitied produce Heineken's namesake brand and Tiger beer.
In an interview with just-drinks on Friday, Heineken's Asia Pacific president, Roland Pirmez, said a strong production footprint in China was important to the Dutch brewer's focus on the premium category. He said about half of the global growth in beer over the next five years will come from China, but warned attention must be paid to margins, which he said were the lowest in the world versus volumes.
“(In China) we have been really focused on delivering a premium quality product - price, packaging and ingredients,” Pirmez said. “You can be very quickly trapped by the speed, the energy and the volumes and if you're not managing carefully you can destroy your brand and you can destroy very quickly your value in China.”
This week, just-drinks welcomes Fiona Curtin, the senior innovation manager at Heineken's division in Ireland and a just-drinks subscriber....
Global beer market volume sales in 2014 were forecast to grow by 2%, according to Euromonitor International, primarily driven by the top five global brewers, which account for 48% of global sales....
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