Heineken N.V. enters into agreement to acquire Brasil Kirin Holding S.A.

Amsterdam, 13 February 2017 - Heineken N.V. ("HEINEKEN") announces today that it has entered into an agreement with Kirin Holdings Company, Limited ("Kirin") to acquire Brasil Kirin Holding S.A. ("Brasil Kirin"), one of the largest beer and soft drinks producers in Brazil. The transaction will transform HEINEKEN's existing business across the country by extending its footprint, increasing scale and further strengthening its brand portfolio. On closing, HEINEKEN will become the second largest beer company in Brazil, with a stronger commercial platform from which to capture future profitable growth in an exciting beer market.

Market background
Brazil is the fifth largest country in the world with over 200 million people. Beer volume in 2015^[1] was 139 million hectolitres, making it the third largest market globally.

Whilst the macroeconomic environment has been challenging over the last few years, the longer term fundamentals of the Brazilian beer market are highly attractive supported by a growing population and a positive GDP outlook. In addition, the premium segment of the beer market, which has outperformed the broader beer market in recent years, has a relatively low share compared to many other markets, providing a compelling and attractive opportunity for future growth.

About Brasil Kirin
Brasil Kirin is a large beer producer in Brazil, operating 12 production facilities with its own distribution network. It has a particularly strong presence in the North and North East, where HEINEKEN currently has less exposure. It owns an extensive portfolio of beer brands and its share of the Brazilian beer market in 2015 was c.9%¹. The portfolio includes Schin, one of Brazil's largest brands covering the mainstream and value segments, as well as the Devassa brand. Furthermore, it owns the speciality brands Baden Baden and Eisenbahn, which will complement HEINEKEN's existing premium portfolio.

Brasil Kirin also has a soft drinks business comprised of carbonated drinks, bottled water and other beverages. The soft drinks portfolio, which has around 2%¹ market share, includes the iconic Itubaína brand.   

About HEINEKEN Brazil
HEINEKEN expanded its footprint in Brazil through the acquisition of the beer operations of Fomento Económico Mexicano, S.A.B. de C.V ("FEMSA") in 2010. Since then, HEINEKEN has increased its market share to c.10%^[2], led by Heineken® in the outperforming premium segment. At the same time, HEINEKEN has continued to build scale with the Kaiser and Bavaria brands, and has recently seen strong success with the roll out of Amstel in the mainstream segment. HEINEKEN currently operates 5 breweries in Brazil and has a strategic distribution partnership with the Coca-Cola bottlers.