BELARUS NEWS AND ANALYSIS

DATE:

03/06/2008

Belarus: Heineken to acquire leading Belarus brewery

Heineken N.V. is to acquire the Rechitsa brewery, strengthening Heineken's number two position in the fast growing Belarus market giving the company a production share of 24%. In 2007, Rechitsa sold 285,000 hectolitres, equating to a national production share of 8%.

Nico Nusmeier, Regional President Central and Eastern Europe, Heineken N.V. commented: "Following the acquisition of Syabar in December 2007, this transaction underlines our confidence in the potential of the Belarus beer market. The combination of Syabar and Rechitsa will give us a complementary brand portfolio, a leading position in South Eastern Belarus and a strong platform on which to grow our Russian brands, the fastest growing segment in this region".

Under the terms of the transaction, Heineken has agreed to invest ?6.4 million in an increase in the share capital of Rechitsa, ultimately leading to a 51% share in the company. The brewery, has a technical capacity of 525,000 hectolitres, employs 588 staff and is located in Rechitsa, 280 km from Minsk. The business also operates a maltery, with a capacity of 10,000 tons. The portfolio consists of the mainstream beer brand Rechitsa and its 6 sub brands, the economy brand Dneprovska and a newly launched premium brand, BergG.

The proposed acquisition is subject to regulatory approvals.

Source:

http://www.progressivenewsletter.com/view_news.do?id=16654

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