August 3, 2018 – Heineken has announced the signing of agreements with China Resources Enterprises (CRE) and China Resources Beer, as part of its aim to “create a long-term strategic partnership for Mainland China, Hong Kong and Macau”.
The deal will see Heineken pick up a 40% stake in holding company CRH Beer for HK$24.3bn (€2.67bn), which will effectively give it a 20.67% stake in CR Beer, China’s largest brewer. In addition, CRE will pick up a 0.9% stake in Heineken for €464m. And finally, Heineken will “contribute its operating entities in China” into CR Beer via a share sale worth HK$2.4bn (€264m).
As part of the deal, the Dutch brewer will licence its Heineken brand in China, Hong Kong and Macau to CR Beer. The two sides will also look to use Heineken’s global distribution channels to help grow CR Beer’s beer brands.
Jean-François van Boxmeer, Chairman and CEO of Heineken, noted: “We very much look forward to joining forces with CRE and CR Beer, the undisputed market leader in China. We believe that our strong Heineken brand and marketing capabilities, combined with CR Beer’s deep understanding of the local market, its scale and best-in-class distribution network will create a winning combination in the growing premium beer segment in China.”
Chen Lang, Chairman of CRE, added: “With Heineken’s long heritage and world-class iconic brand portfolio, along with our leading presence and deep understanding of China, we believe we can win together in this new era of the Chinese beer market, in which the premium segment will become increasingly important. In Heineken we have found the perfect partner to achieve our ambitions in China and – as an international partner – to support us in growing our business outside China.”