Heineken acquires majority
in Hungarian brewery
First step in Central Europe
The intention is to start brewing
Amstel beer locally. Heineken
beer has already been availa
ble in Hungary for a number of years
via imports and Heineken will contin
ue to import the brand into that mar
ket as a premium product. With an
output of 350,000 hectolitres and a
market share of 4%, Komaromi is a
small brewery. Heineken decided to
participate in Komaromi because the
policy visions of both breweries fit
together well. The brewery specialis
es in the production of quality beers,
has a good location and infrastructure
and a young and enthusiastic
management.
The brewery is situated near the
town of Komarom, some eighty kilo
metres west of Budapest, near Lake
Balaton. The brewery is now in its
third year of operation and is in a
good technical condition. Expansion
investments will be needed for the
introduction of Amstel.
The Hungarian beer market has a
total volume of 10 million hectolitres
and per capita consumption amounts
to 97 litres a year. The brands mar
keted by the brewery are: Talléros,
Heineken has taken its first step in Central
Europe. During a press conference held in
Hungary G. van Schaik, Chairman of the Heineken
Board, announced that Heineken has acquired a
participation in the Hungarian brewery Komaromi
Sörgyar BT. Heineken now holds a majority stake
of 50.3%.
Mr Van Schaik giving a speech during
the press conference. Standing to his left is
Géza Porganyi, chairman of the
supervisory board of the Komaromi
brewery. On Mr Van Schaik's right stands
Mr A. Ypma, Heineken's Business
Development Director who conducted the
negotiations with Komaromi. Pictured
extreme right: Andrds Szentirmay, general
manager of the brewery.
Matrós, Aranytallér and Kapsreiter.
The plan is to retain the local brands;
Amstel beer will be added to the
range.
Segmentation
Heineken's decision to play an
active role on the Hungarian market
with both Heineken beer and Amstel
beer is based on the confident expec
tation that a segmentation of the
Hungarian beer market will occur in
future. Market research has shown
that both Heineken and Amstel have
good prospects. Amstel will be position
ed as a premium beer, whilst work
will be done to build up a more exclu
sive image for Heineken via imports.
The management of the brewery
will remain in Hungarian hands but
will be complemented by a Heineken
manager who will be primarily
responsible for the corporate brands
and the expansion programme. In
addition technical, financial and com
mercial assistance will be provided
where necessary.
Strategy
With this participation in Hungary
Heineken has taken an initial step in
Central Europe. This region compris
es attractive beer markets which will
(in due course) offer possibilities for
international brands.
As a leading international brewing
company, Heineken intends to play an
active role in Central Europe. The
strategy to be pursued will depend on
market conditions and on the possi
bility of building up a position in those
countries.
T H E WORLD OK H E I N K K E N
