Heineken N.V. announced that it has completed the acquisitions of the Bedele and Harar breweries from the government of the Federal Democratic Republic of Ethiopia for $85 million and $78 million, respectively. These transactions follow Heineken’s participation in the public auctions for the two breweries.
Siep Hiemstra, who succeeded Tom de Man as Regional President Africa and the Middle East for Heineken on August 1, commented. “We are delighted to have acquired these two breweries which give us a suitable footprint in one of Africa’s most exciting beer markets. The transactions reflect Heineken’s strategy of increasing our exposure to and growth from developing markets.
“Just as importantly, our expansion into the Ethiopian market increases our long-term commitment to Africa. Heineken will immediately look for ways to use less water in the brewing process. It will introduce practices to ensure that water returned to the eco-system is clean so local users are not prevented from gaining access to clean, fresh water. Heineken is also committed to working closely with farmers and small-holders to help build their understanding of sustainable agricultural practices to increase yields and enable permanent, positive change in the country. Heineken’s work in these areas has delivered positive economic and social benefits in other countries across Africa and we expect the same positive impact in Ethiopia.”
The two breweries are responsible for brands such as Bedele Premium, Bedele Special, Harar, Hakim Stout and Harar Sofi (malt), and have a combined market share of 18% in the Ethiopian beer market.
