Heineken the battle for asia pacific breweries by aarkstore

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Asia Pacific Breweries is Heineken’s joint venture in Singapore, with a variety of brands and consumer beverages that enjoy prominence in their local markets. The venture is crucial to the firm's growth strategy. This has been compromised following a competitor acquiring shares in the partner firm. Heineken considers this a threat, and wants to gain full control of the venture.

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									Heineken: the battle for Asia Pacific Breweries
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Introduction

Asia Pacific Breweries is Heineken’s joint venture in Singapore, with a variety of brands and
consumer beverages that enjoy prominence in their local markets. The venture is crucial to the
firm's growth strategy. This has been compromised following a competitor acquiring shares in
the partner firm. Heineken considers this a threat, and wants to gain full control of the venture.

Scope of this research

MarketLine Case Studies describe topics such as innovative products, business models, and
significant company acquisitions. Fact-based and presented in an accessible style, they explain
the rationale of commercial decisions and illustrate wider market and economic trends.
Research and analysis highlights
Heineken is the world's third largest beer producer, behind Anheuser-Busch InBev and
SABMiller.

Asia Pacific Breweries' growth saw a compound annual growth rate of 13.4% from 2007 to 2011
as revenues jumped from S$1.78bn ($1.42bn) to S$2.97bn ($2.37bn). Net income went from
S$263.1m ($209m) to S$341.7m ($271.9m), a 29.9% increase.

Asia Pacific remains an untapped market for the big three brewers, contributing to earnings
before interest and tax by approximately 2% for Anheuser-Busch InBev and SABMiller, and 7%
for Heineken.

Key reasons to purchase this research

Why has Heineken moved to fully control Asia Pacific Breweries? What are the implications of
the deal for the Asia Pacific region?
Table of Contents :

Overview 2
Catalyst 2
Summary 2
Analysis 6
Heineken and Asia Pacific Breweries 6
Heineken is one of the largest brewing companies in the world 6
Asia Pacific Breweries is a prominent Heineken joint venture 8
F&N: the other partner in APB 10
Heineken's growth strategy 11
Advancing brands is central to growth 11
Access to emerging markets is a key objective 12
Heineken's activities in Asia Pacific could secure future dividends 14
ThaiBev's interest has sparked a battle for APB's control 15
APB's success has attracted interest within the region 15
The deal has regional implications 16
Conclusions 17
Heineken must win control of APB to secure its position 17
Appendix 18
Definitions 18
Sources 18
Further reading 19
Ask the analyst 20
About MarketLine 20
Disclaimer 20

TABLE OF FIGURES

Figure 1: Global beer market share, by volume (%), 2010 7
Figure 2: APB's revenues (S$), 2007–11 8
Figure 3: Tiger beer, one of APB's most successful products 9
Figure 4: Heineken's sponsorship of the UEFA Champions League 11

LIST OF TABLES

Table 1: Heineken's revenues and net income, 2006–11 6
Table 2: Global beer market share, by volume (%), 2010 7

								
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