Heineken completes Brasil Kirin acquisition

By Jenny Eagle contact

- Last updated on GMT

Brasil Kirin owns Schin beer. Picture: Brasil Kirin.
Brasil Kirin owns Schin beer. Picture: Brasil Kirin.
Heineken has completed its acquisition of Brasil Kirin Holding (Brasil Kirin) from Kirin Holdings Company, to capture the fast-growing Brazilian beer market.

Brazil is the third largest beer consuming country in the world (by volume), after China and the US.

Schin beer

Brasil Kirin’s flagship brand is Schin beer, and other brands include Baden Baden, Devassa and Kirin Ichiban. Headquarted in Sao Paulo, it is a subsidiary of Japan’s Kirin Holdings Company.   

The closing of the transaction follows fulfilment of all conditions​ precedent as agreed on February 13, 2017, when Heineken announced it had entered into an agreement to acquire Brasil Kirin.

Heineken became the world’s second largest brewer after the combination of AB InBev and SABMiller late last year.

Heineken has acquired the assets​ of Brasil Kirin for approximately $704m, corresponding to an estimated enterprise value of $1.1bn once the two companies are consolidated, according to a statement by the firm.

"This transaction marks a step-change in scale in an exciting beer market, building on our success to date in the premium segment and strengthening our platform for future growth,”​ said Jean-Francois van Boxmeer, chairman/CEO, Heineken at the time.

Attractive returns

“It reiterates our commitment to the Brazilian market and confidence in our ability to generate attractive returns over the long-term across all segments of the market.”

According to Canadean Brazil has a population of more than 200 million people and it is ranked as the third largest global beer market with a volume of 118,451,339 barrels (139m hectolitres) in 2015.

Heineken’s first venture into the Brazilian beer market was in 2010 with the acquisition of Fomento Económico Mexicano​ . Since then, Heineken has increased its market share to 10% with strong performance from the rollout of Amstel in the mainstream segment.

Heineken currently operates five breweries in Brazil and has a strategic distribution partnership with Coca-Cola bottlers.

Brasil Kirin operates 12 production facilities with its own distribution network and has a strong presence in the North and North East of Brazil, where Heineken currently has less exposure.

The Brazilian manufacturer’s beer portfolio holds a 9% share of the Brazilian beer market with mainstream brands such as Schin and Devassa as well as specialty brands Baden Baden and Eisenbahn.

With the acquisition, Heineken will also own the Brazilian company’s soft drink portfolio, which has around a 2% market share, including the Itubaína brand.

Related news

Show more

Related products

show more

Husky PET Tooling Guide: Mold Care & Maintenance

Husky PET Tooling Guide: Mold Care & Maintenance

Husky Injection Molding Systems Ltd. | 22-Jun-2021 | Insight Guide

Looking for ways to increase the efficiency and productivity of your injection molding system? Proper mold care and maintenance is a great place to start.

Solutions for Citrus Flavor Stability & Shelf Life

Solutions for Citrus Flavor Stability & Shelf Life

MANE, Inc. | 01-Apr-2021 | Direct Enquiry

Thank you for your interest in MANE. Please send us a brief message using this form to learn more about our Pure Capture™ citrus technology and/or beverage...

A future path for JNSD: download the white paper

A future path for JNSD: download the white paper

Tetra Pak | 08-Dec-2020 | Technical / White Paper

The JNSD – juice, nectar and still drinks – portion of the beverage industry is conservative in many ways. But once in a while, something new comes along...

Related suppliers

Follow us

Products

View more

Webinars