Heineken acquires Rechitsa brewery in Belarus
You would have thought that most Belarusians drive taxis in New York. But no. They are back home drinking beer brewed by Heineken.
On 22 May Heineken announced that it is to acquire the Rechitsa brewery in south-eastern Belarus, strengthening Heineken’s number two position in the fast growing market and giving the company a production share of 24 percent.
Just as well Heineken claims to have a 24 percent production share only. Heavens - and the traffickers – know how much beer is actually consumed by Belarusians as the amount of beer smuggled into the country used to be significant. The reason? Beer in Belarus was unpalatable.
Heineken has been fortunate in having good relations with Belarus’ authoritarian president Alexander Lukashenko. Having sent Russia’s Baltika brewery packing a few years ago, Heineken is now the only major foreign brewer investing in a beer market the size of Switzerland.
In December last year Heineken bought the Syabar brewery. Five months later the Dutch brewer agreed to spend USD 9.9 million (EUR 6.4 million) on increasing Rechitsa’s share capital. This will ultimately lead to a 51 percent share in the company. The transaction is to be financed from existing credit facilities. The proposed acquisition is subject to regulatory approvals.
In 2007, Rechitsa sold 285,000 hl, says Heineken, which equals a national production share of 8 percent. The brewery has a capacity of 525,000 hl, employs 588 staff and is located in the city of Rechitsa 280 km from Minsk. Rechitsa also operates a malting plant with a capacity of 10,000 tons. The portfolio consists of the mainstream beer brand Rechitsa and its six sub brands, the economy brand Dneprovska and a newly launched premium brand, BergG, which has three variants.
