Heineken has extended its agreement with Royal Unibrew in Denmark to cover the brewing of its beers in the country.

The Dutch company confirmed today (13 April) that it will use Royal Unibrew to brew, market and sell Heineken in Denmark. The earlier agreement between the two covered just the marketing and sales of Heineken.

"I am very pleased that with this license agreement we now have the opportunity to further expand the already proven and successful sales and marketing agreement with Heineken in Denmark," said Poul Møller, CEO at Royal Unibrew. "By bringing the first locally brewed Heineken lager on the Danish market, we will increase our earnings and competitive edge by better utilising capacity and logistics for further growth. The license agreement will also strengthen the position and growth potential for Royal Unibrew's own national and regional premium beer brands such as the very successful Royal Beer series."

Speaking to just-drinks today, a spokesperson for Royal Unibrew said: "The agreement between the two companies since the second half of 2002 has been very successful - there is mutual agreement on this.

"Heineken has quite a unique leading position as an international brand in Denmark," the spokesperson added.

While Royal Unibrew accounts for 25% of the premium segment of the Danish beer market, the Heineken brand holds a 1-1.5 % market share.

Royal Unibrew is the second largest brewery group and largest beer exporter in Scandinavia.