Heineken, the second largest brewer in Brazil and worldwide, announced at a conference an investment of BRL 550 million (USD 141 million) in the state of São Paulo. The contribution is part of the company's expansion strategy and aims to modernize its breweries Araraquara, Itu and Jacareí, and its microbrewery in Campos do Jordão (Baden Baden). The group will also open a new distribution center in the countryside of São Paulo, still in 2019.
Recently the Dutch multinational also announced an investment of BRL 15 million (USD 3.9 million) in the Brazil Beer Institute (ICB), an institution dedicated to offering qualification courses for the beer market.
"Since 2015, we have consistently invested in our breweries to support the growth of the Heineken Group in Brazil. São Paulo is an extremely important state for us due to the supply of the Southeast region, a strategic market for the company, especially in the premium beer segment," says Nelcina Tropardi, Vice President, Corporate Affairs, Heineken Group.
In 2017 Heineken acquired Brasil Kirin Holding and its leading brand Schincariol from Kirin Holdings Company, Japan, and became the second largest brewing group in Brazil after Ambev (AB InBev). The Dutch brewer started a series of restructuring measures and was successful in turning the ailing brewing group profitable again.
In 2018, Heineken’s growth in Brazil exceeded its sales expectations, and demand for its flagship brands even exceeded its production capacity in the country. In early 2019 Credit Suisse and Bradesco BBI identified the restricted production capacity as obstacles for future growth of Heineken in Brazil.
In its report for the first quarter of this year, Heineken stated that beer volume grew again double digit, driven by both the premium portfolio led by Heineken, and the mainstream portfolio led by Amstel and Devassa. (inside.beer, 24.4.2019)
In addition to its main product of the same name, Heineken owns the Sol, Kaiser, Bavaria, Amstel, Kirin Ichiban, Schin, No Grau, Devassa, Baden Baden, Eisenbahn and Glacial brands. The non-alcoholic portfolio includes soft drinks and water such as Água Schin, Schin Tonic, Skinka and the soft drinks Itubaína, FYs and Viva Schin. Headquartered in São Paulo, the company is a subsidiary of Heineken NV, the largest brewery in Europe, the second in terms of profitability and the third in volume. Heineken operates 170 breweries in more than 70 countries.