Heineken betting big on China

The stake in CRB would provide a huge boost to Heineken’s distribution reach. Photo credit – Pixabay

Dutch brewery Heineken will be investing $3.1 billion into China Resources Beer in an attempt to expand in the world’s largest beer market.

The figure represents the equivalent of a 40% stake in the Chinese company.

China is the world’s biggest beer market by volume and is predicted to become the largest contributor to the premium brand market in the next five years due to increase in middle class population.

Heineken have had trouble keeping up with their biggest rival Anheuser-Busch Inbev who are worth 174 billion euros against Heineken’s value of 51 billion euros.

The stake in CRB would provide a huge boost to Heineken’s distribution reach and will bring them closer to keeping up with AB Inbev.

According to a press release from Heineken, Chairman of the Executive Board and CEO Jean-François van Boxmeer said: “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.”

”We look forward to working together with CRE’s leadership in our newly formed Strategic Advisory Council, and supporting CR Beer in its ambition to internationalize.”