Asia Brewery partners with Heineken

MANILA, Philippines - Lucio Tan’s Asia Brewery Inc. (ABI) signed yesterday a joint venture agreement with Dutch brewing company Heineken International B.V.  to brew Heineken brands in the Philippines.

Under the agreement, both ABI and Heineken shall form a joint venture company, AB Heineken Philippines, which shall commence operations in the fourth quarter.

ABI’s two breweries in Cabuyao, Laguna and El Salvador, Misamis Oriental will be upgraded so they can brew Heineken brands.

“In the meantime ABI will start to distribute Heineken® and Tiger in the Philippines,” the company said in a disclosure to the Philippine Stock Exchange  yesterday.

AB Heineken Philippines will implement the Dutch firm’s global policies and approaches in relation to supplier code, local sourcing, water management, employee healthcare and human rights, community investment and responsible alcohol marketing.

Heineken is a  major global brewer with a portfolio of more than 250 international, regional, local and specialty beers and ciders. It operates 167 breweries, malteries, cider plants and other production facilities in more than 70 countries.

Frans Eusman, president of Heineken Asia Pacific said the joint venture with ABI represents a good business opportunity for Heineken.

“It increases our exposure to another market in the region with strong growth potential,” Eusman said.

LTG Group chairman and chief executive officer Lucio Tan welcomed the deal.

“Our local  knowledge and distribution network combined with the brewing and marketing expertise of Heineken will be able to deliver quality beer brands and an exceptional experience for our consumers,” he said.