BELARUS NEWS AND ANALYSIS

DATE:

28/12/2007

Heineken acquires Syabar brewing company in Belarus

MINSK. Dec. 28. (Interfax) - Heineken is acquiring the Belarusian brewing company Syabar, which is based in the Mogilyov region, Heineken said in a press release.

The press release said that the purchase of the Belarusian company would be implemented through the acquisition of its parent company, which is registered in Cyprus and was formed by the U.S. investment group Detroit Investment Ltd. and the International Financial Corporation (IFC).

The cost of the acquisition has yet to be made public. The acquisition's financing will start at the beginning of 2008 and come to completion in 2012.

Heineken's regional director for Central and Eastern Europe, Nico Nusmaier, commenting on the purchase, said that it was in accordance with the company's strategy for cornering a leading position on the market. Nusmaier was quoted in the press release as saying that Belarus was a quickly growing market, which permits the formation of good platform for the development of Heineken's brands on the same level as in Russia.

In July of this year, Syabar completed the latest phase of its production reconstruction, which doubled its annual beer brewing capacity to 12 million decaliters.

In January-November 2007, the company produced 5.05 million decaliters of beer, a 51.6% year-on-year increase.

The company's share in the production of Belarusian beer, according to the Belgospischeprom concern, came to 15.4% in January-November 2007.

Syabar intends to boost its annual beer production capacity to 17 million decaliters in 2008 and 20 million decaliters in 2009.

The company produces two types of beer under the Syabar brand, Original and Light, as well as three types of beer under the Bobrov brand, Light, Strong and Classic. The company's production is bottled in half-liter, one and two liters plastic bottles, as well as glass half- liter bottles.

Syabar (prior to August 2005 - CJSC Belarusian Brewing Company) was registered in February 2004. The company's founders are Detroit-Belarus Brewing Company LLC (DBB Company), which was formed by Detroit Investment Ltd., and the IFC, and Bobruisk-based Dednovo in the Mogilev region. DBB Company owns more than 75% of the shares in Syabar. Dednovo's stake comes to just over 20%.

The company's charter capital comes to 18 billion Belarusian rubles.

Heineken has said that the Belarusian beer market is doubling on a yearly basis. Overall consumption of beer in Belarus comes to 4.5 million hectoliters. Annual per capita beer consumption comes to 45 liters.

Heineken is one of the world's leading beer producers. As of 2006, Heineken owned 130 breweries in more than 65 countries. In addition to the company's world famous Heineken and Amstel brands, Heineken produces more than 170 international and local beer brands.

Source:

http://www.interfax.com/3/351389/news.aspx