Heineken avoids current acquisition wave

Recently SABMiller launched a hostile bid for Foster’s, Japan’s Asahi Breweries agreed to buy New Zealand’s Independent Liquor, and Kirin announced it was buying half of Brazil’s Schincariol. But Henieken is sitting out the recent wave of global beer industry acquisitions,

the

Financial Times

reported.

An analyst told the

FT

that Heineken’s “patchy record on acquisitions” may be behind the decision to hold back. Jean-François van Boxmeer acknowledged that the company has had difficulty in Russia and said its strategy in Brazil is to build market share for the Heineken brand. The company sees potential in India, but only over the long term, van Boxmeer told the

FT.

“Family stewardship has been a determinant of the way we build our business model. But it was built over decades and, thanks to family control, we can from time to time take the long view.”

The

FT

report noted that Heineken Holdings, which is majority owned by the Heineken family, owns slightly more than 50% of the brewer. Mexico’s Femsa, whose beer business was acquired by Heineken last year, owns 10%. (Source:

Financial Times,

Aug. 24, 2011.)