HEINEKEN enters Ecuadorian beer market
Heineken N.V. ('HEINEKEN') announces that it has acquired a majority stake in Biela y Bebidas del Ecuador S.A. BIELESA from a group of mainly local investors.
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Over the past few years, BIELA ECUADOR has established its place in the Ecuadorian beer market by re-launching the Biela® brand. The BIELA brewery is located in Guayaquil, Ecuador's largest city, and is fully operational using high-quality brewing and packaging equipment. In addition to Biela®, HEINEKEN intends to market its portfolio of premium and international brands, led by Heineken®, in Ecuador in the future. HEINEKEN also plans to brew Heineken® beer locally in due course.
Marc Busain, President Americas at HEINEKEN, said: "We are pleased to announce our investment in Ecuador. With its favourable demographics, flourishing tourism industry and GDP growth, it offers a lot of potential to grow our premium offering, led by the Heineken® brand. We are excited to grow our business in Ecuador in close collaboration with our new partners."
Luis Enrique Landinez, CEO of BIELA ECUADOR, speaking on behalf of the group of investors said: "We are very pleased to have completed this alliance with HEINEKEN, which is good news for Ecuador and its consumers, who will have a wider and better choice of beer products. The successful re-launch of the Biela® brand, its current recognition in the market, and the favourable investment environment generated by the Ecuadorian Government have successfully drawn HEINEKEN into Ecuador."
Ecuador is a very attractive market, with GDP projected to grow at a 5.7% rate (CAGR) in the next 10 years and encouraging social-economic fundamentals. The Ecuadorian beer market presents a promising opportunity for HEINEKEN, with a current size of 6 million hectolitres per year and a relatively low consumption per capita of 39 litres when compared to other South American countries. In addition, the Ecuadorian government is supportive of foreign investment and of introducing competition in the beer market.
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