Heineken Acquires Additional Brewery Capacity in Nigeria

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Dutch beer brewer Heineken has strengthened its platform for growth in Nigeria via the acquisition of two holding companies from the Sona Group. The transaction price has not been disclosed.
The two acquired businesses have controlling interests in each of the Sona, IBBI, Benue, Life and Champion breweries in Nigeria.

The acquisition provides Heineken with an additional technical capacity of 3.7 million hectolitres, helping to alleviate the company’s current capacity constraints in the market and improving the geographic location of its breweries.

This will enable Heineken to take advantage of the attractive future growth opportunities that exist in different regions of the country. The acquisition has been funded from existing resources.

Heineken will explore the possibility of consolidating the newly acquired breweries into its existing business structure in Nigeria during 2011. Discussions with Nigerian Breweries and Consolidated Breweries will begin now the transaction has been finalized.

The acquired breweries will continue to provide and expand contract brewing services to Nigerian Breweries and Consolidated Breweries for the meantime, while continuing to own, brew and support the Goldberg, Williams Dark Ale and Malta Gold brands as well as various smaller regional brands.

Through this investment, Heineken will provide direct and indirect employment opportunities for the domestic work force in Nigeria. Both Nigerian Breweries and Consolidated Breweries have invested heavily in Nigeria in recent years and remain committed to further development of the local beer market.

Heineken has deep roots in Africa dating back to 1900 when it first started to export beer into West Africa. Its first brewery was opened in the Democratic Republic of Congo in 1923. Heineken’s geographic footprint now stretches across 15 countries on the continent with 37 breweries.

Tom de Man, president for Africa & Middle East at Heineken, said: “This important move reflects Heineken’s strategy of increasing our exposure to and growth from developing markets. Nigeria is one of the world’s most exciting beer markets and one of the most important countries for Heineken. This acquisition underlines our ongoing commitment to the country and will significantly strengthen our platform for future growth.”

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