BELARUS NEWS AND ANALYSIS

DATE:

28/12/2007

Heineken Acquires Belarus Brewing Company Syabar

By Dee Chisamera

Heineken NV is expanding its brand on the European market after buying Syabar Brewing Co., one of the largest beer producers in Belarus. The price of the transaction has not been disclosed, but the Amsterdam-based company said they will benefit from the acquisition starting next year.

Syabar Brewing Co. is a Cypriot holding company belonging to Detroit Investments Limited (Cyprus) and the International Finance Corp, affiliated to the World Bank. The Belarus brewing company has been functional since 2005 and managed to become the second largest beer brand in the country.

Nico Nusmeier, president of Heineken NV for Central and Eastern Europe, said in a statement: "This transaction is in line with our strategy to obtain leading market positions and brands. Belarus is a fast growing market and this deal will give us an excellent platform from which to grow both the Heineken brand as well as our imported Russian brands."

The Belarus beer maker, number two on the beer market in its country, has an estimated annual consumption of 4.5 million hectoliters, and appeared to have been in a continuous growth for the past two years. The 2007 sales, estimated to approximately 600,000 hectoliters, were almost double the 2006 sales, estimated at 370,000 hectoliters.

The Dutch brewing company was founded in 1864 by Gerard Adriaan Heineken and is currently the fourth largest brew production in the world, after InBev, SABMiller and Anheuser-Busch. With 115 breweries in 65 countries, Heineken sells over 170 types of beer and claims to have kept the original 1864 recipe.

The 2006 revenues reached an estimated ?12 billion, while the operating income situated at ?1.8 billion the same year. The Dutch brew maker employs around 58,000 people and it has an annual production of approximately 121.8 million hectoliters.

Source:

http://www.efluxmedia.com/news_Heineken_Acquires_Belarus_Brewing_Company_Syabar_12309.html