HEINEKEN : increases exposure to high growth markets with inauguration of $60m Myanmar brewery

13-07-2015 | 08:05

Amsterdam, 13 July 2015 - HEINEKEN has opened a $60 million brewery in Myanmar, which will have a technical capacity of 330,000 hectolitres per year and which will directly employ more than 200 local people.

The opening of the new brewery further expands HEINEKEN's exposure to high growth markets. Myanmar has one of the largest populations in Southeast Asia, with more than 53 million[1] people, rapid urbanization and a fast-growing middle-class consumer base. For the year ending 31 March 2015 the country delivered GDP growth of 7.7%** and is targeting further growth of 8.3%** for this fiscal year. These strong economics and demographics helped drive $8.01 billion*** of Foreign Direct Investment in 2015.

The new brewery is located at a greenfield site in the Hmawbi township, near the country's capital, Yangon. It will start by brewing Heineken® for the premium segment of the market and a new local brand, Regal Seven, a lager beer developed especially for the Myanmar market.

Speaking at the opening, Jean-François van Boxmeer, HEINEKEN CEO and Chairman of the Executive Board, said: "Myanmar is an exciting new opportunity for HEINEKEN. We have a strong track record of growing in partnership with emerging markets, investing in the latest technologies, hiring and training local employees, and supporting the communities where we operate. With our inclusive approach to growth, we are well placed to build a strong and sustainable business in Myanmar."

Aung Moe Kyaw, Chairman, Alliance Brewery Company Ltd said: "We are delighted that the brewery is now operational. It is modern, efficient and something we can all be proud of. Now we can move to the next phase of the project, delivering excellent beers that consumers enjoy and creating a continuous supply of attractive employment opportunities for the people of Myanmar."

The opening ceremony was attended by guests including Mrs Charlene de Carvalho-Heineken, Jean-François van Boxmeer, Chairman of the Executive Board and CEO of HEINEKEN, JV partner Aung Moe Kyaw, Chairman, Alliance Brewery Company Ltd, as well as high level political and community leaders and representatives from local and international NGOs.

The brewery was built by APB Alliance Brewery Company Limited, a joint venture company in which HEINEKEN, through its wholly owned subsidiary Heineken Asia Pacific Pte. Ltd, has a controlling 57 percent stake. HEINEKEN is responsible for overall management, providing brewing and technical expertise, procurement of ingredients and the licensing of brands.

In addition to creating direct employment opportunities through the brewery, HEINEKEN has introduced a number of local initiatives in line with its Brewing a Better World programme. These include Employee and supplier Code of Conduct training; helping local rice millers to meet international guidelines and plans to convert smallholder farmers from insecure non-profitable farming to high yield contract farming; a formal engagement programme with community groups to address any issues of concern; and a strong water stewardship programme including regular consultation with the Myanmar Engineering Society and local village representatives.

-ENDS-

Press enquiries:

John Clarke

Head of External Communication

Christine van Waveren

Financial Communications Manager

E-mail: pressoffice@heineken.com
Tel: +31-20-5239-355

Director of Investor Relations

Gabriela Malczynska

Investor Relations Analyst

E-mail: investors@heineken.com
Tel: +31-20-5239-590

Editorial information:

About HEINEKEN
HEINEKEN is a proud, independent global brewer, committed to surprise and excite consumers with its brands and products everywhere. The brand that bears the founder's family name - Heineken® - is available in almost every country on the globe and is the world's most valuable international premium beer brand. The Company's aim is to be a leading brewer in each of the markets in which it operates and to have the world's most valuable brand portfolio. HEINEKEN wants to win in all markets with Heineken® and with a full brand portfolio in markets of choice. The Company is present in over 70 countries and operates more than 165 breweries. HEINEKEN is Europe's largest brewer and the world's second largest by consolidated volume. HEINEKEN is committed to the responsible marketing and consumption of its more than 250 international premium, regional, local and specialty beers and ciders. These include Heineken®, Affligem, Amstel, Anchor, Biere Larue, Bintang, Birra Moretti, Cruzcampo, Desperados, Dos Equis, Foster's, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Strongbow, Tecate, Tiger and Zywiec. Our leading joint venture brands include Cristal and Kingfisher. The number of people employed is over 81,000. Heineken N.V. and Heineken Holding N.V. shares are listed on the NYSE Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on the Reuter Equities 2000 Service under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY).

About Alliance Brewery Company Ltd
Alliance Brewery Company Ltd (ABC) is a privately-owned company in Myanmar. Their joint venture with HEINEKEN was announced in 2013. ABC is majority-owned by Aung Moe Kyaw, a local entrepreneur and established leader in the spirits industry.

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