?Heineken to take over charges of United Breweries' reign

United Breweries is a prominent beer manufacturer in India associated with the HEINEKEN group headquartered in Amsterdam, has announced the launch of Heineken® Silver Draught Beer in India.

This introduction signifies a noteworthy moment as Heineken introduces its draught beer in the Indian market, aiming to offer consumers a high-quality, smooth beverage suited for social gatherings.

"We are thrilled to introduce Heineken® Silver Draught Beer to the discerning consumers in India, aligning with our commitment to cater to evolving preferences. This variant has already garnered immense appreciation in our global markets, and we are confident that it will resonate with the new generation of beer enthusiasts in India. As we embark on this exciting journey, our strategic growth plan includes expanding the availability of Heineken® Draught to other cities, ensuring more consumers can enjoy the exceptional taste and quality that define the Heineken® experience.", said Vivek Gupta, MD and CEO, United Breweries Limited.

Beer is brewed by experienced master brewers using solely natural components, including Heineken’s distinctive A-yeast and 100% malt, Heineken® Silver Draught Beer presents a fresh and smooth flavor.

"The introduction of Heineken® Silver Draught Beer in India marks a significant expansion of our product portfolio, offering consumers a unique and refreshing world class drinking experience deeply rooted in Heineken's brewing legacy and expertise. Quality is paramount, and our longer brewing process as compared to other lager beers, horizontal fermentation, combined with 150 years of craftsmanship, ensures a consistently balanced Heineken® beer with an unmatched taste and stability." said Jacqueline Van Faassen, Head of International Premium Portfolio at Heineken India.

Initially, Heineken® Silver Draught Beer will be exclusively offered in upscale bars and pubs in Mumbai, Thane, and Pune in Maharashtra. Expansion into Karnataka is planned for the fiscal year 2024.

Heineken® Silver Draught is currently offered in high-end pubs and bars, with plans for its introduction in additional markets within the coming months.

Heineken has today announced that it has entered into an implementation agreement with Distell Group Holdings Limited (‘Distell’), Namibia Breweries Limited (‘NBL’) and Ohlthaver & List Group of Companies (‘O&L’) to integrate their respective and relevant businesses in Southern Africa into one enlarged company.

As per the statement, a recommended offer by HEINEKEN for Distell, which values the businesses 1] to be acquired at approximately €2.2 billion and is subject to, inter alia, Distell shareholder approval.

The proposed acquisition from NBL of its 25% shareholding in HEINEKEN South Africa (‘HSA'), which values the whole of HSA at approximately €1.5 billion, and is subject to, inter alia, NBL shareholder approval and the acquisition of O&L’s 50.01% interest in NBL Investment Holdings (Proprietary) Limited (‘NBLIH’), the controlling shareholder with a 59.4% shareholding in NBL. HEINEKEN already owns a 49.99% interest in NBLIH. NBL’s current market valuation is approximately €400 million.

At completion, HEINEKEN will contribute these acquired assets plus its 75% directly owned shareholding in HSA and certain other fully owned export operations in Africa, into an unlisted public holding company (referred to as Newco). HEINEKEN will own a minimum of 65% of Newco, with the remainder held by Distell shareholders who elect to reinvest.

“We are very excited to bring together three strong businesses to create a regional beverage champion, perfectly positioned to capture significant growth opportunities in Southern Africa. 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 and grow the iconic Windhoek brand beyond its home market,” shared Dolf Van den Brink, chairman & CEO, Heineken.

Heineken’s total investment in Newco will be approximately €2.5 billion, in return for a 65% shareholding. The total investment comprises:

A cash pay-out of approximately €1.3 billion for the transactions involving Distell and NBL above; and the contribution of its currently owned assets, including 75% of HSA, 100% of its export businesses in certain other African markets, and its minority interest in NBL.

“What we have achieved with NBL is truly amazing, but the time has come to unleash its full potential, by giving NBL access to the world. Having worked with HEINEKEN for many years and knowing that they too are passionate about beer and share similar family values and culture to that of O&L, we are confident that HEINEKEN is best placed to do just that,” added Sven Thieme, CEO, NBL.

Lager Beer maker Heineken is buying Rs 74 lakh shares of United Breweries Holding (UBHL) from the ED which fetched the government agency Rs 1,008 crore earlier this week.

The shares, which are equivalent to 2.8% stake in United Breweries once helmed by Vijay Mallya, will help push up Heineken’s hold over India’s largest beer maker to about 46%.

The Dutch-beer maker has been trying for years to get a majority stake in UB—51%—but have been futile since Mallya’s entire holding has been attached. The shares were pledged by Mallya to Yes Bank as security against loans taken by Kingfisher Airlines. The money amassed will help the consortium of lenders, led by SBI, to recover loans turned nonperforming assets (NPA) worth Rs 9,000 crore. The ED has already identified properties worth Rs 12,500 crore including Rs 9,000 crore already attached under the Prevention of Money Laundering Act.

In 2016, Heineken had bought similar pledged shares from banks and other lenders. Mallya and his holding companies still hold 13.8% of United Breweries, as per the latest shareholding pattern in December 2018, but with the current share sale, it will come down to about 11%.

Dutch beermaker Heineken has decided to invest $3.1 billion to earn stake in China's top brewer, marking its entry in Asian giant's booming and hotly contested market, the two groups announced Friday.

Heineken has signed a "non-binding" agreement with China Resources Beer to acquire 40 percent of CRH, the listed entity controlling the Chinese group, for a total of 24.35 billion Hong Kong dollars, according to a statement.

In return, China Resources Beer will buy a 0.9 percent stake in Heineken for 464 million euros ($537 million).

The Dutch firm, which operates three breweries in the country, will merge its operations in China with those of its new partner.

Heineken will also grant its partner permission to market its eponymous beer brand in the country.

The deal allows Beijing-based China Resources Beer, known above all for low-cost brands like Snow Beer, to add a well-known premium brand to its line-up.

The merger of Heineken and its Chinese partner signals the growing competition in the Chinese market, with consumers turning towards foreign beers and better quality products as middle class incomes rise.

China market which is dominated by local brewers has three Chinese groups controlling more than 40 percent of the market, according to figures from Euromonitor International cited by Bloomberg News.

China Resources recently controlled 18 percent of the country's beer sales, followed by number two competitor Tsingtao.

The inclusion of Denmark's Carlsberg and Belgium's AB Inbev are putting pressure on prices and lowering margins, intensifying the rivalries between international giants. The pressure has prompted certain foreign groups to withdraw, including Japan's Asahi.

China, the world's largest market for beer production, "is forecast to be the biggest contributor to premium volume growth in the next five years, driven by its rapidly growing middle class," Heineken said in its release.

CEO Jean-Francois van Boxmeer praised the "winning combination" of Heineken's "strong brand" and China Resources Beer's extensive distribution network in the country.

Japanese brewer Kirin has said that it would sell its Brazilian unit to Dutch beer giant Heineken for USD706 million, citing a 'stagnant and competitive' market. The company said it will transfer all shares of Brasil Kirin Holdings to Heineken subsidiary Bavaria for 2.2 billion reals.

In a statement, the company has stated that, "Considering various risks associated with (the) Brazilian economy and (the) stagnant and competitive situation in (the) Brazilian beer and soft drink markets, Kirin has come to the conclusion that there are certain limitations in transforming Brasil Kirin into a sustainable and high-profitable business on its own."

Separately Kirin, which is look ing to strengthen its presence in the Asia-Oceania region, confirmed plans to buy a majority stake in Myanmar's Mandalay Brewery for USD4.33 million from military-backed Myanmar Economic Holdings.

The deal will give it control of the country's oldest brewery, and 90 percent of Myanmar's beer market, a company spokeswoman said.

The maker of Heineken beer, Heineken International BV has increased its stake in United Breweries as it bought shares worth Rs 39.48 crore in the company through an open market transaction, reported PTI.

According to block deals data available with BSE, Heineken International bought 4,25,000 shares or 0.15 per cent stake, in UBL for Rs 39.48 crore.

The shares were bought from Yes Bank at an average price of Rs 951.50 apiece.

As on 30th September, Heineken held 42.07 per cent stake in UBL through three companies - Heineken International B V, Heineken UK Ltd and Scottish & Newscastle India Ltd.

While Scottish & Newscastle India Ltd held 34.04 per cent stake in the firm, Heineken International B V held 4.82 per cent and Heineken UK Ltd held 3.21 per cent.

Heineken had indirectly acquired 37.5 per cent stake in UBL following its worldwide takeover of Scottish & Newcastle (S&N) in January 2008. Following the deal, Heineken has been raising stake in UBL through open market transactions.