Heineken and Asia Brewery sign joint venture agreement
It’s all very hush-hush. Asia Brewery, a subsidiary of Philippine conglomerate LT Group, said on 27 May 2016 that it had struck a deal with Heineken that will allow it to brew the popular Dutch beer brand later this year.
The press release did not say how big Heineken’s stake in the joint venture will be, only that the new venture will be called AB Heineken Philippines and that it aims at tapping the country’s growing demand for international premium beer, which according to Heineken stood at 0.3 percent of total beer consumption in 2013.
The Philippine beer market was about 16 million hl in 2015, which puts per capita beer consumption at 16 litres in a country of about 100 million people.
San Miguel, in which Japan’s Kirin has a 48 percent stake, currently controls 90 percent of the overall Philippine beer market, which leaves Asia Brewery with a market share of under 10 percent.
Asia Brewery was established by Dr Lucio Tan, 81, a Chinese immigrant, in 1982 after the then President Ferdinand Marcos gave him a license, and is a division of his LT Group, whose interests range from banking, property development and beverages to spirits and tobacco. Banking has been the group’s biggest earner, though.
The company currently brews Colt 45 (under license from U.S. brewer Pabst) and has distributed Asahi Super Dry since 2013. Asia Brewery was previously a licensee brewer of Carlsberg (1987), Budweiser (1997), Lone Star (1999), Coors Original (2007) and Coors Light (2007) beers, it was reported.
Asia Brewery said it will upgrade its two plants in preparation for Heineken production, which it hopes to start in the fourth quarter of this year.
In the meantime, Asia Brewery will distribute imported Heineken and Tiger brand products in the Philippines.
