Heineken has reached an agreement with its Japanese competitor Kirin to acquire its Brazilizan activities. Talks lasted a month and have now reached a positive conclusion.
Loss in 2016
Heineken will pay about 660 million euro to acquire Kirin’s entire Brazilian branch, which actually generates a 1.1 billion euro turnover. However, last year, the branch suffered a 85 million euro operational loss.
This way, the Dutch company immediately gets 9 % (for beer) and 2 % (for soda) market shares in Brazil and it gains plenty of additional traction in 2 of its weaker regions in the country: the north and northeast.
Brazil has been in economic turmoil for a while, but Heineken still decided to invest, pointing to the population’s growth and the long-term economic recovery. The company also feels premium beer brands can still generate plenty of growth in Brazil.
