Heineken eyes China’s premium beer market, signs US$3.1 billion deal with country’s biggest brewer

Dutch brewing giant Heineken NV announced on Friday it would give China Resources Beer, the country’s biggest brewer, exclusive rights to use its Heineken brand in mainland China, Hong Kong and Macau, in a deal worth US$3.1 billion. The region represents the world’s largest market for beer.

Under the agreement, Heineken will take a 40 per cent stake in CRH Beer, China Resources Beer’s parent company, for HK$24.35 billion (US$3.1 billion). China Resources Enterprise, which owns CRH Beer, will concurrently acquire 5.2 million shares – a 0.9 per cent shareholding – in Heineken for €463.63 million (US$537 million).

China Resources Beer is the maker of Snow Beer, which commands about 20 per cent of China’s domestic urban market, according to international consumer consultancy Kantar Worldpanel, and is the country’s most popular brand.

The deal comes at a time when high-end brands have emerged as the main drivers in the Chinese beer market. Premiumisation is an important strategy for China Resources Beer.

“With Heineken’s long heritage and world-class iconic brand portfolio, along with our leading presence and deep understanding of China, we believe we can win together in this new era of the Chinese beer market, in which the premium segment will become increasingly important,” Chen Lang, the chairman of China Resources Enterprise, said in a joint statement.