HEINEKEN ST1INGTHENS
QSITION tfSPWM THROUGH
UZCANPO ACQUISITION
CUSTOMER LOYALTY AWARD
FOR AMSTEL LIGHT IN USA
HEINEKEN ACQUIRES STAKE IN
ISRAELI TEMPO BEER
INDUSTRIES
UVIIIEtfEll
Heineken has reached agree
ment with Diageo and Carls-
berg on the acquisition of
98.7% of the shares in the
Spanish brewing group
Grupo Cruzcampo. The inten
tion is that Cruzcampo will
be integrated with
Heineken's existing Spanish
operating company El Aguila
to form one group of brew
eries which will then have a
37% share of the Spanish
beer market. The planned
acquisition still has to be
approved by the Spanish
authorities.
The acquisition of
Cruzcampo will mainly have
a positive impact on the
Heineken brand. Cruz-
campo's distribution net
work can be used to expand
the availability of Heineken
Beer in Spain, particularly in
Southern Spain where
Cruzcampo has built up a
strong position. The Cruz
campo head office is located
in Seville. The company
operates five breweries with
a total output of six million
hectolitres of beer.
The Spanish beer market
currently has a volume of
25 million hectolitres and is
static. However, growth
potential does exist for the
international premium
brands. How the brands
portfolio of the new compa
ny will be structured is still
being studied at the
moment.
Heineken USA's Amstel Light
has won the Brand Keys
Customer Loyalty Award in
the light beers section. This
prize is presented to the
brands that score the highest
marks for consumer loyalty.
As part of the survey the
Brand Keys company soun
ded out the opinions of eight
thousand people from all
over the United States. The
respondents were asked to
indicate which brand they
felt the greatest affinity for.
Compared to other light
beers, Amstel Light exceeded
consumer expectations in
terms of what was the 'ideal
light beer'. Pictured (from
left): Yuri Schwalbe, Amstel
Marketing Manager, Dennis
Peters, Amstel Associated
Brand Manager and Michael
Foley, CEO of Heineken USA.
Heineken has acquired a par
ticipation of 35% in a hold
ing company, which will be
established together with
the Israeli Beer/Bornstein
Group. This holding compa
ny owns a majority stake of
50.8% in Tempo Beer
Industries, of which the
largest brewery in Israel is a
part. By means of this trans
action Heineken indirectly
acquires a 17.8% stake in
Tempo Beer Industries. The
consideration of the trans
action is EURO 17 million.
The acquisition is a first
step towards a further
strengthening of the ties
between the two companies.
In addition it was agreed to
establish a joint venture to
further develop the Heineken
brand in Israel within two
years. Furthermore parties
have decided to separate the
beer activities from the
Tempo company, which also
produces and/or sells annual
ly 1.8 million hectolitres of
soft drinks, fruit juices and
water. Subsequently
Heineken will exchange its
35% stake in the holding
company into a direct stake
of 50% in a newly formed
brewing company. Whether
Heineken beer will be brew
ed locally depends on the
further technical develop
ment of the brewery and the
market development.
The beer market in Israel
has a clear growth potential.
At present per capita con
sumption is approximately
15 litres, with a total sold
beer volume of 850,000
hectolitres. Tempo produces
and markets the two most
successful brands in the
country: Maccabee ('blond')
and Goldstar (dark lager
beer); other brands are
Nesher and Malt Star. Tempo,
which is listed on the Tel-
Aviv Stock Exchange, holds a
market share in Israel of
some 70% and has approxi
mately 1,200 employees.
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