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HOLLAND: FEMSA & Heineken team up in US

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Fomento Economico Mexicano (FEMSA) and Heineken announced today that FEMSA Cerveza and Heineken USA have reached a definitive agreement that will make Heineken USA the sole and exclusive importer, marketer and seller of FEMSA's beer brands in the US.

The three-year agreement signed between Wisdom Import Sales LLP, FEMSA Cerveza's wholly-owned subsidiary, and Heineken USA is expected to become effective towards the end of the year, 120 days after FEMSA completes its announced repurchase of a 30% stake of FEMSA Cerveza. At the end of the three-year period both parties will discuss how they will take this commercial relationship forward.

Under the terms of the agreement, Heineken USA will assume responsibility for the marketing, sales and distribution of the beer brands Tecate, Dos Equis, Sol, Carta Blanca and Bohemia across the US.

Heineken's strategy in the US is to grow its premium brands within the import segment, the fastest growing beer segment in the country. Expanding its portfolio with the strong premium and specialty brands of FEMSA fits this strategy perfectly, the company said. Heineken USA will benefit from greater scale and from the broader portfolio of brands, which will allow Heineken USA to increase its leadership in the import segment.

FEMSA's Mexican quality brands strongly complement the already successful combination of Heineken and Amstel Light, Heineken added. Furthermore, through FEMSA's brands, Heineken will more broadly participate in the Hispanic market, the fastest growing demographic group in the US.

The FEMSA brands add about 1.8m hectolitres to Heineken's volumes in the country, bringing the total Heineken volume to 7.9m hectolitres, an increase of 28%. The combined market share in the imported beer segment in the US will be approximately 26%.

In a statement, Marc Bolland, member of the executive board of Heineken NV said: "The deal we have announced today will increase our leadership in the import segment. Heineken USA will benefit from a broader portfolio of strong premium brands and a larger scale."

Javier Astaburuaga, co-CEO of FEMSA Cerveza, added: "We are extremely pleased with this agreement. Teaming up with Heineken represents a great opportunity for the distribution and marketing of our brands in the key US market going forward. Our portfolios are very complementary, and we are confident that the combination of our quality beers and well-known brands with Heineken's top-notch market execution will prove a formidable one."


Sectors: Beer & cider

Companies: Heineken

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