Heineken buys Czech brewer Drinks Union to expand in region
25-03-2008
Heineken has acquired Drinks Union in the Czech Republic, giving the Amsterdam-based brewer a 12 per cent share in the country's market.
According to Heineken, the deal will strengthen its number three position in the region giving the company a total domestic volume of 1.9 million hectolitres. Heineken did not disclose the cost of the deal.
Nico Nusmeier, regional president of central and eastern Europe for Heineken, said: "With this transaction we have significantly extended our reach and consolidated our position in a profitable beer market.
"Our geographic presence coupled with our strong, balanced portfolio of regional and national brands, will allow us to extract greater value from the considerable growth opportunities in the Czech market."
Drinks Union owns four breweries, all located in north and east Bohemia and has a total production capacity of 0.9 million hectolitres, with 523 staff. The brand portfolio consists of the national brand Zlatopramen and the regional Breznak, Louny and Dacicky brands.
The company currently has a domestic market share of four per cent and annual sales in 2007 of 900,000 hectolitres.
In the Czech Republic, Heineken currently owns the Starobrno and Krusovice Breweries, with breweries in Brno, Znojmo (Moravia) and in Krusovice (Bohemia). Heineken's existing brand portfolio includes Starobrno, Hostan, Zlaty Bazant, Krusovice and Heineken.
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