Lucio Tan's Asia Brewery Will Push Through With Brewing Heineken Beer This Year
Heineken beer will soon be brewed and distributed in the Philippines after the company realigned its partnership with Lucio Tan-owned Asia Brewery.
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The two companies have had a joint venture in the Philippines since 2016 through AB Heineken, but this new partnership structure will produce and distribute Heineken beer brands, including flagship brand Heineken and Tiger, in the country. The Dutch beer company also plans to establish a full-fledged sales and marketing office based in Manila.
The transition of the partnership structure, which was approved by the copany's board and announced in a disclosure to the Philippine Stock Exchange, is expected to be completed by the end of December 2020.
“The immediate priority for Asia Brewery and Heineken is to ensure a smooth transition for the employees of AB Heineken Philippines and continuity for its customers and suppliers,” Asia Brewery said in a statement.
Asia Brewery first announced plans to brew Heineken in the country in 2017, one year after announcing the initial partnership with the Dutch beer company. Tan’s brewery said it was part of plans to reach the more premium segment of the beer market in the country. It estimates it has about a five percent market share in the Philippines, which has been dominated for years by San Miguel Corp.
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“The Philippines continues to present a good long-term business opportunity for Heineken and both Asia Brewery and Heineken remain committed to continue offering Heineken and Tiger beer to consumers in the country,” Asia Brewery added.