Heineken, NBL may open SA brewery

AMSTERDAM – Dutch brewer Heineken is considering whether to build a brewery in South Africa before the expiry of a licence there for its second brand, Amstel, now held by SABMiller.

Heineken officials said recently that a decision was likely before the end of 2006. South Africa is the continent’s biggest beer market, with annual consumption of more than 26 million hectolitres – more than twice the global production of the Amstel brand.”Heineken, with its partners Diageo and Namibia Breweries, will decide within the coming year how to expand further into South Africa,” an official said.Since late 2004, Namibia Breweries has made Heineken for Namibia and exported to South Africa.Heineken has licensed its Amstel brand in South Africa to SAB and this licence expires in late 2008.While SAB has in the past expressed an expectation that the licence would continue, the Heineken official said that “currently there are no discussions with SAB on the (dis)continuation of the licence”.Last year, Heineken teamed up with Diageo and Namibia Breweries in a joint venture for South Africa under the name Brand House.Heineken and Diageo have a combined 28,9 per cent stake in Namibia Breweries.The Brand House venture involves the Windhoek, Heineken, Guinness and Kilkenny brands.SABMiller, the result of the 2002 buy by South African Breweries of Miller Brewing Co., controls almost 98 per cent of the beer market in South Africa and 70 per cent of the premium market, partly due to the sales of Amstel.-Nampa-ReutersSouth Africa is the continent’s biggest beer market, with annual consumption of more than 26 million hectolitres – more than twice the global production of the Amstel brand.”Heineken, with its partners Diageo and Namibia Breweries, will decide within the coming year how to expand further into South Africa,” an official said.Since late 2004, Namibia Breweries has made Heineken for Namibia and exported to South Africa.Heineken has licensed its Amstel brand in South Africa to SAB and this licence expires in late 2008.While SAB has in the past expressed an expectation that the licence would continue, the Heineken official said that “currently there are no discussions with SAB on the (dis)continuation of the licence”.Last year, Heineken teamed up with Diageo and Namibia Breweries in a joint venture for South Africa under the name Brand House.Heineken and Diageo have a combined 28,9 per cent stake in Namibia Breweries.The Brand House venture involves the Windhoek, Heineken, Guinness and Kilkenny brands.SABMiller, the result of the 2002 buy by South African Breweries of Miller Brewing Co., controls almost 98 per cent of the beer market in South Africa and 70 per cent of the premium market, partly due to the sales of Amstel.-Nampa-Reuters