Heineken has acquired two Ethiopian breweries, Bedele and Harar, from the government of the Federal Democratic Republic of Ethiopia for a total of $163m in a public auction for the two breweries.
The Dutch brewing giant has bought the Bedele brewery for $85m and the Harar for $78m, respectively.
Bedele Brewery is located in the South Western of Ethiopia, and owns brands such as Bedele Premium, Bedele Special.
Located in Harar, Harar Brewery produces Harar Beer, a 4.25% ABV pale lager, Hakim Stout, a 5.8% ABV stout, Harar Sofi, a non-alcoholic malt beverage. The two breweries have a combined market share of 18% in the Ethiopian beer market.
Heineken Africa and Middle East regional president Siep Hiemstra said the company will immediately look for ways to use less water in the brewing process.
"It will introduce practices to ensure that water returned to the eco-system is clean so local users are not prevented from gaining access to clean, fresh water," Hiemstra said.
Currently, Heineken has presence in 20 African countries. With Ethiopia's beer and non-alcoholic malt consumption way below the global average of 27 liters, at nearly 4 liters per capita in 2010, Heineken believes the market offers a promising and long-term growth for the company in the region. [drinks-business-review]
