Wednesday, June 24, 2009

Heineken Taking It To SABMiller

In anticipation of the 2010 World Cup in South Africa, Heineken is about to open a brand new brewery in the home of SABMiller. The new plant will brew Diageo and Heineken products like the pilsner flagship, Amstel Light, and "Ireland"'s Guinness Stout, brands that are much more popular with Europe's soccer crowd than SABMiller's American and South African-focused brands. There are some discussions to also partner with A-BInBev to brew Budweiser at this facility for the Cup. The brewery should open in Q3 or Q4 of this year. Also being added to the plant is a new barley malting facility.

Interestingly, an additional benefit of having a brewery in South Africa is the access to the returnable bottles that we despise here in the US, but are so prevalent throughout the world. "Once constructed, the brewery would allow access to a returnable bottle pool, potentially making it more affordable as well as freeing up money for investment behind the brands."

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