Asia Brewery partners with Heineken
Lucio Tan’s Asia Brewery Inc. has signed a joint venture agreement with Heineken International BV, a move that will allow Asia Brewery to reach a more affluent market with its brand and brew Heineken’s beers locally.
The joint venture company, to be named AB Heineken Philippines Inc., will implement Heineken’s global policies on responsible alcohol marketing, local sourcing, water management, and employee healthcare and human rights.
Asia Brewery, which owns facilities in Cabuyao and El Salvador, will be upgrading its breweries to brew Heineken brands. In the meantime, it will start distributing Heineken and Tiger beers in the country.
Details on the financial terms are not available but the operations of the joint venture company is expected to start in the fourth quarter of the year.
In a statement, Heineken Asia Pacific president Frans Eusman 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.”
In its disclosure to the stock exchange. LTG chair and chief executive officer Lucio C. Tan 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.”
Heineken has a portfolio of more than 250 international, regional, local and specialty beers and ciders with 167 production facilities in more than 70 countries.