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Heineken NV has agreed to buy two South African alcohol companies, broadening the Dutch Beer company’s exposure to a region considered among the world’s most attractive growth markets for beer.
Here’s the deal….
Beer is a big deal in Africa and Heineken, second largest brewer in the world, has been making big moves over the last five years to address that thirst.
In 2017 the Dutch beer giant made an ambitious play to expand its reach into Africa’s valuable Ivorian beer market. In partnership with distribution specialist CFAO, Heineken launched a state-of-the-art $160 million brewery on the outskirts of Abidjan, Côte d’Ivoire, the country’s economic capital.
In 2019 Heineken opened a S100 million brewery in Mozambique, which sources all its ingredients in that country and in doing so has generated more than 200 jobs in the region.
And on November 15, Heineken announced that it had agreed to buy South African alcohol maker Distell and Namibia’s largest brewer Namibia Breweries Limited, increasing the beer giant’s reach on a continent considered among the world’s most attractive growth markets for alcohol.
Pending approval, Heineken plans to combine these South African acquisitions into one “enlarged” company, resulting in a majority-owned business which will have a total valuation of approximately €4 billion.
We are very excited to bring together these strong businesses to create a regional beverage champion, perfectly positioned to capture significant growth opportunities in Southern Africa, said Heineken’s CEO and chairman of the executive board Dolf van den Brink…
“Distell is a highly regarded, resilient business with leading brands, a talented workforce and a strong track record of innovation and growth in Africa. With NBL, there are exciting opportunities to expand premium beer and cider in Namibia. Together we will be able to better serve our consumers and customers through a unique combination of multi-category leading brands and a strengthened route-to-market.”4
The full acquisition is expected to complete in the course of 2022.
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(Heineken logo credit: Heineken NV)
