BY BAMIDELE FAMOOFO
Leading brewing company, Heineken has completed the acquisition of Distell and Namibia Breweries as part of initiatives to deepen its footprints in Africa and expand its product portfolio beyond beer as the new company seeks to explore spirits, wine and cider categories.
Heineken, is the largest shareholder in Nigerian Breweries Plc, a leading brewer in Africa’s largest economy.
According to the company, the acquisition which births a new company called HEINEKEN Beverage is expected to add more than €1 billion in net revenue and €150 million operating profit as the company aims to leverage growth opportunities in South Africa in line with its commitment to deliver high-quality beverages to consumers across the continent.
Commenting on the acquisition, Dolf van den Brink, HEINEKEN’s CEO and Chairman of the Board Executive, said: “We are delighted to welcome over 5,400 talented employees of Distell and Namibia Breweries into HEINEKEN and look forward to adding more than €1 billion in net revenue and €150 million operating profit to our African footprint.
“By combining the strengths of all three entities, we can leverage our expertise and resources to foster growth, create jobs, and contribute to the overall economic development of the region” he added.
As part of the agreement with the Competition Authorities in South Africa, HEINEKEN Beverages is expected to invest more than €500m over five years, Invest ¹ Africa over five years, Create an Innovation and Research & Development (R&D) hub for the region and Implement a ‘Tavern Transformation’ programme which will support around 1,000 tavern owners to become licensed, sustainable local enterprises over a five-year period.
The Distell Group is South Africa and Africa’s leading producer and marketer of wines, spirits, ciders and other ready-to-drink (RTD) beverages, sold across the world. With a diverse portfolio of brands, its products cater to a broad spectrum of consumers.