One step at a time

In January 2005, Heineken and Tempo announced the establishment of a new company in Israel, which will handle all of Tempo’s beverages activities and brew Heineken in Israel. Heineken, which has owned 17.8 percent of Tempo until now, will own 40 percent of the new company and invest USD14.5 million in set-up costs. Tempo will own 60 percent of the new company, which it valued at USD69.5 million.
Heineken and Tempo said that Tempo would transfer the production of soft drinks, beer, fruit juices and mineral water to the new company. In addition, Heineken would grant Tempo a license to brew and market Heineken in Israel. According to the local media, Tempo is controlled by the Podhorzer, Bar and Bornstein families. The company is believed to control half of Israel’s beer market..

It is based in Netanya on the Mediterranean coast. In 2003 it sold 500,000 hl of beer and 1.8 million hl of soft drinks, juices and mineral water. The Israeli beer market is small, with consumption only having reached one million hl in 2003 which equals a per-capita consumption of 16 litres.
The joint venture with Tempo continues Heineken’s rollout in the Middle East – traditionally a market ignored by most brewers because of Islam’s strict laws on alcohol consumption. Apart from Israel, Heineken now owns or has invested in breweries in Egypt and Lebanon.