Heineken expands into Belarus beer market with acquisition of Syabar

Heineken, the Dutch brewer, is expanding into the fast-growing Belarus beer market with the acquisition of leading brewer, Syabar Brewing Company, as part of a strategy to obtain leading market positions and compensate for sluggish growth rates in Western beer markets.

Heineken, the world’s fourth largest brewer, did not disclose financial details but said it would buy Syabar’s Cypriot parent company using existing cash resources. The company said the purchase ‘will be earnings enhancing in 2008′.

In a statement, Heineken said it is buying Syabar’s Cypriot parent company from a consortium led by Detroit Investments Limited (Cyprus) and from the International Finance Corporation, an affiliate of the World Bank.

The Belarus beer market is showing double-digit percentage growth, with annual consumption now at nearly 4.5m hectolitres and it expects Syabar sales to reach 600,000 hectolitres in 2007 said Heineken .

Heineken has been on the lookout for acquisitions to expand sales in some of its main markets and gain access to faster growing regions. It recently formed a partnership with Carlsberg in an effort to buy UK brewer Scottish & Newcastle, the largest independent brewery in the UK, but the bid was rejected.

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