The Lucio Tan group’s Asia Brewery Inc., producer of the famous Tanduay rum since 1937, signed a joint venture agreement with famous Dutch brewer Heineken International B.V. for the local production and distribution of the premium beer and cider drinks under the famous Heineken brand for a still-undisclosed amount.
Asia Brewery is owned by the LT Group Inc. (LTG), a listed company with a diversified portfolio of consumer-focused businesses. Under the agreement, a new joint venture company, AB Heineken Philippines Inc., will be formed.
Two breweries, which Asia Brewery owns in Cabuyao, Laguna, and El Salvador, Misamis Oriental, will be upgraded to brew Heineken beer.
Under the deal, Asia Brewery will distribute Heineken and Tiger beer brands in the Philippines.
AB Heineken Philippines Inc. will implement Heineken’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 Asia-Pacific President Frans Eusman said the joint venture with Asia Brewery represents a good business opportunity to increase its exposure to another market in the region with strong growth potential.
LTG Chairman and CEO Lucio C. Tan said Asia Brewery’s knowledge and distribution network combined with the brewing and marketing expertise of Heineken will allow the delivery of quality beer brands and an exceptional experience for consumers.
The transaction is subject to customary closing conditions and operations are expected to commence in the fourth quarter. RIZA LOZADA