BELARUS NEWS AND ANALYSIS

DATE:

28/12/2007

Heineken buys brewer in Belarus

Dutch brewer Heineken NV has announced the acquisition of one of Belarus' leading brewers Syabar Brewing Company.

Heineken did not disclose the acquisition price, saying it would buy Syabar's Cypriot parent company using existing cash resources.

The Belarus beer market is showing double-digit growth, with annual consumption now estimated at almost 4.5m hectolitres, Heineken said.

The company said the purchase "will be earnings enhancing in 2008".

It expects Syabar sales to reach 600,000 hectolitres in 2007.

Strategy

"This transaction is in line with our strategy to obtain leading market positions and brands," said Heineken's Nico Nusmeier.

"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," he added.

Heineken has been looking at acquisitions to expand sales in some of its main markets and gain access to faster growing regions.

It has joined forces with Carlsberg in an attempt to buy UK brewer Scottish & Newcastle.

The Carlsberg-Heineken consortium first approached S&N in October, and proposed a 750p-per-share offer in November. But S&N, which brews Foster's and Kronenbourg, rejected the approach.

S&N said that Carlsberg was trying to gain full control of Russian brewer BBH, currently jointly-owned by S&N and Carlsberg.

Source:

http://news.bbc.co.uk/1/hi/business/7162707.stm