Ethiopia: Heineken completes acquisition of Komari Beverages - report

Heineken Brewery has completed the acquisition of Komari Beverages, the supplier of Arada’s beverage products, marking a significant expansion of its presence in Ethiopia’s competitive beer market, Ethio Negari reported on October 13.

According to Capital newspaper, Arada Beer, a relatively new entrant in Ethiopia’s beer market, has quickly gained popularity among consumers.

The manufacturer, Komari Beverages, has successfully concluded negotiations to sell its factory to Heineken, solidifying the multinational’s growing influence in the country’s beverage sector.

Sources indicate that negotiations had been ongoing for several months. The two parties initially reached the final stage of talks in July 2024, but discussions were revisited following changes in the Ethiopian foreign exchange currency market that took effect the same month.

These changes likely impacted the terms of the deal, prompting both sides to reassess certain aspects before moving forward.

The official sale price is expected to be announced by the end of this month, with the formal handover of the factory taking place simultaneously.

Komari’s facility, located in the Cheki area of North Showa Zone in the Amhara Region, approximately 96 km northeast of Addis Ababa, has a production capacity of 27,000 bottles per hour.

The factory, which became operational just three years ago, was built by Ethiopian investors at a cost exceeding $29 million.

Despite its short tenure, Komari has managed to secure a significant market share, particularly through its Arada brand, which has resonated strongly with Ethiopian consumers.

Heineken, a global beer giant, first entered the Ethiopian market in 2011 by acquiring Harar and Bedele breweries from the government for $163 million.

With this latest acquisition of Komari Beverages, Heineken further strengthens its position in Ethiopia, where it already produces popular brands such as Walia, Harar, Bedele, and Heineken beers.

This move highlights the company’s commitment to expanding its operations in one of Africa’s fastest-growing economies.

Currently, Ethiopia is home to 12 breweries, with Heineken being the largest among them. The acquisition of Komari Beverages adds another major asset to Heineken’s portfolio in the country.

Ethiopia’s beer industry has a long history, with the first brewery, Saint George Brewery, being established 102 years ago.

Today, Saint George produces well-known Ethiopian brands such as Meta, Zebidar, and Raya beers, continuing its legacy in the local market under the umbrella of BGI Company.

The purchase of Komari Beverages marks a new chapter for Heineken and the Ethiopian beer industry, as competition heats up and international players continue to expand their footprint in the region.

Heineken, however, has refused to be drawn on reports in Ethiopia that the brewing giant has struck a deal to buy Komari Beverage.

Heineken, which has a brewery close to Addis Ababa, sent a short statement when approached by Just Drinks.

“We are aware of the recent media coverage in Ethiopia however it is our policy not to comment on rumours and speculation in the market,” a spokesperson said.

14 October, 2024