FDBusiness.com

Heineken has strengthened its platform for growth in Nigeria with the acquisition from the Sona Group of two businesses which have controlling interests in each of the Sona, IBBI, Benue, Life and Champion breweries in Nigeria. The acquisition provides Heineken with an additional technical capacity of 3.7m hectolitres, helping to alleviate the Dutch group’s current capacity constraints in the market and improving the geographic location of its breweries. This will enable Heineken to take advantage of the attractive future growth opportunities that exist in different regions of the country.

The acquisition has been funded from existing resources. The transaction price has not been disclosed. Heineken will explore the possibility of consolidating the newly acquired breweries into its existing business structure in Nigeria during 2011.

At about 16.5m hectoliters, the Nigerian beer market is the second largest in Africa and has grown at a compound annual growth rate of 9% over the past decage. Nigeria is the most populated country in Africa with over 150 million people. Beer and non-alcoholic malt consumption was approximately 11 litres per annum in 2009, well below the global average of 27 litres.