FDBusiness.com

In line with its strategy of increasing exposure to emerging markets, Heineken is acquiring two breweries in Ethiopia, after being named the preferred bidder by the Ethiopian Government following a public auction. Heineken is paying $85m and $78m respectively for the Bedele and Harar breweries.

The two breweries have a combined market share of 18% with brands such as Bedele, Harar, Hakim Stout and Harar Sofi (malt). Ethiopia is Africa’s second most populated country with 85 million people and its beer market (3m hectolitres in 2010) has grown by approximately 20% per year over the past five years, compared to a GDP growth of 8%.

Beer and non-alcoholic malt consumption in Ethiopia was approximately 4 litres per capita in 2010, which is well below the global average of 27 litres and below beer consumption in neighbouring countries, such as Tanzania (7 litres), Uganda (9 litres) and Kenya (10 litres). In addition to a fast growing population and a developing beer market, the country’s political stability and improving economy, make Ethiopia a promising, long-term growth market for Heineken in Africa.