NETHERLANDS: Heineken wins race for Ethiopia's Bedele, Harar breweries
Heineken has won the bidding race for the two Ethiopian breweries
Heineken has confirmed reports that it has won the bidding contest to acquire the state-owned Bedele and Harar breweries in Ethiopia.
Although the brewer was unable to clarify claims yesterday that it led the field in the race for the two companies, Heineken announced this morning (5 May) that the Ethiopian government has chosen the company as the preferred bidder for the Bedele and Harar breweries. The winning bids were US$85m and US$78m, respectively.
Heineken said that it “will now work with the government to finalise the transaction”, a date for which was not given.
“This transaction represents another important step in Heineken’s strategy of increasing its exposure to emerging markets,” said Heineken's president of Africa and Middle East, Tom de Man. “Ethiopia is one of Africa’s most promising beer markets and our expansion … strengthens our platform for continued growth in the region.”
The two breweries have a combined market share of 18% with brands such as Bedele, Harar, Hakim Stout and Harar Sofi. Per capita beer and non-alcoholic malt consumption in Ethiopia stands at about 4 litres, according to figures cited by Heineken.
Heineken can largely thank Africa for the surprise rise in sales in the third quarter of its fiscal year, with the much-vaunted FEMSA Cerveza business in Mexico a late developer....
Heineken has said that it is on track to meeting full-year profits guidance, despite seeing net sales come under pressure from currency in its fiscal third quarter....
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