Heineken N.V. regains Amstel brand in South Africa and announces new
brewery
Amsterdam, 12 March 2007 - Heineken N.V. announced today that with
immediate effect its subsidiary Amstel Brouwerij ("Amstel") has
exercised its right to terminate the contract with South African
Breweries for the production, marketing, sale and distribution of
Amstel Lager in Southern Africa. This follows an arbitration award by
the International Court of Arbitration of the International Chamber
of Commerce in favour of Amstel.
In addition, Heineken also announced that it has taken an
in-principle decision to construct a brewery in South Africa.
Amstel Lager will be marketed, sold and distributed in South Africa
through Brandhouse Beverages (Pty) Ltd., the Cape Town headquartered
joint venture between Heineken, Diageo and Namibia Breweries. Until
the new brewery is complete, the production of Amstel Lager will be
sourced from existing Amstel breweries in Europe.
Tom de Man, Regional President Africa and the Middle East of Heineken
N.V., commented, "Regaining the Amstel brand is an important
development for both the Heineken and Brandhouse businesses. It
allows us to further strengthen the existing Brandhouse portfolio and
it represents a significant step in building our business in this
profitable beer market."
Brandhouse Managing Director, Simon Litherland, commented, "We are
delighted with Heineken's announcement and the developments around
Amstel. Amstel will be a fantastic addition to our premium brand
portfolio and will bring significant scale to our existing beer
business".
Amstel Lager is positioned in the premium segment of the South
African market and has an 8% market share. In 2006, the premium
segment grew above 20%, whilst the total South African beer market
grew at 1%.
Amstel initiated the arbitration in 2006 following its conclusion
that the acquisition by BevCo LLC of a 15.04% shareholding in
SABMiller resulted in a material change in ownership of SABMiller
which Amstel reasonably considered to be harmful to the interests of
the Heineken Group. Consequently, under the terms of the contract,
Amstel became entitled to terminate the agreement.
Editorial information:
Heineken N.V.
Heineken N.V. is the most international brewer in the world. The
Heineken brand is sold in almost every country in the world and the
company owns over 115 breweries in more than 65 countries. With a
Group beer volume of 132 million hectolitres Heineken ranks fourth in
the world beer market by volume. Heineken strives for an excellent
sustainable financial performance through marketing a portfolio of
strong local and international brands with the emphasis on the
Heineken brand, through a carefully selected combination of broad and
segment leadership positions and through a continuous focus on cost
control. In 2006, revenues amounted to ¤12 billion and net profit
before exceptional items and amortisation of brands amounted to ¤930
million. Heineken employs 75,000 people. Heineken N.V. and Heineken
Holding N.V. shares are listed on the Amsterdam stock exchange.
Prices for the ordinary shares may be accessed on Bloomberg under the
symbols HEIA NA and HEIO NA and on the Reuters Equities 2000 Service
under HEIA.AS and HEHN.AS. Additional information is available on
Heineken's home page: http//www.heinekeninternational.com.
Brandhouse Beverages (Pty) Ltd
Brandhouse Beverages (Pty) Ltd is a joint venture formed in July 2004
by the following companies who equally own the South African
business: Heineken, Diageo, the largest alcohol beverage company in
the world and Namibia Breweries Limited, one of the leading
manufacturing companies in Namibia and part of the respected Olthaver
and List Group.
The Brandhouse portfolio of brands includes J&B, Bell's, Smirnoff,
Johnnie Walker, Heineken, Windhoek, Guinness, Baileys, Bertrams VO,
Tanqueray, Gilbeys, Captain Morgan Spiced Gold and Black Label and
Jose Cuervo.
Press enquiries
Véronique Schyns
Tel: +31 (0)20 52 39 606
veronique.schyns@heineken.com
Investor and analyst enquiries
Jan van de Merbel
Tel: +31 (0)20 52 39 590
investors@heineken.com
