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Home | News | International | Heineken completes Kirin Brasil

Heineken completes Kirin Brasil

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Combination enlarges market share to 20%-plus

Brazilian regulatory approval clears last hurdle

Following regulatory approval from the Brazilian Competition Authority, Heineken has completed its acquisition of Brasil Kirin.

The combination of the Kirin’s assets with those already operated by Heineken in the country creates a stronger number two competitor to market leader AmBev, one with national reach and a share of close 65-70% of beer sales.

Kirin entered the market with its acquisition of Schincariol in August, 2011. They add 12 production facilities, a strong presence in the north and northeast where Heineken had minimal presence, and roughly 9% market share.

Brasil Kirin’s portfolio is led by Schin, one of the country’s leading brands with extensions in the mainstream and value segments. It also has a presence in the premium segment with craft brands Devassa, Baden Baden and Eisenbahn.

Heineken became part of the Brazilian market with its acquisition of Mexico’s Femsa in 2010. It operates five breweries in the country along with a strategic distribution partnership with the country’s Coca-Cola bottlers. Its market share is in excess of 10%; its leading brands are Kaiser and Bavaria.

Growth has come of late from the introduction of international brand Amstel. With the combination of the two businesses there are ambitions to accelerate growth with further premiumisation, namely with Sol and Heineken.

According to GlobalData (formerly Canadean) Brazil is the third largest market in the world for beer, with 139 million hectolitres sold in 2015.

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