INTERNATIONAL – Heineken is throwing down the gauntlet to Anheuser-Busch InBev (AB InBev) in some of the emerging markets the Budweiser maker has long dominated.
The Dutch brewer’s shares rose as much as 5.1 percent early yesterday in Amsterdam, the most in more than three years, after it reported full-year earnings that beat analysts’ estimates. Shipments of Heineken’s flagship brand rose 7.7 percent, the fastest pace in more than a decade.
The world’s second-largest brewer is challenging the market leader with acquisitions in China and Latin America, giving it access to new distribution networks that are lifting its volume. Heineken says it’s gaining ground in countries that have been dominated by AB InBev, which is grappling with a mountain of debt from its takeover of SABMiller.
“We’ve been reinforcing our position in new markets – for example Mexico and Brazil – where we’ve made strategic acquisitions to deploy the Heineken brand through larger, better and more efficient distribution systems,” chief executive Jean-Francois Van Boxmeer said.
Heineken became Brazil’s second-biggest brewer in 2017 when it bought Kirin Holdings’s business there for about $600 million (R8.26 billion), giving it control of a roster of brands, including Schincariol, Devassa and Eisenbahn. Last year the Amsterdam-based company bought a $3.1bn stake in China Resources Beer Holdings, the country’s top brewer, in a bid to challenge AB InBev’s position as the largest foreign beer maker in the world’s biggest market.