Netherlands: Heineken will focus on acquisitions in China and Russia

Netherlands’ brewing giant, Heineken N/V, plans acquisitions in emerging markets such as Russia and China as part of its growth strategy, Jean Francois van Boxmeer, board member and future chief executive, said during an analyst meeting. He said: "I can foresee a string of (small) acquisitions." Van Boxmeer will take over from current CEO Thony Ruys on October 1 this year.

However, the company won't simply try to buy up beer volume with the acquisitions, Van Boxmeer said. "The companies must contribute to profitable growth and have a leading position," he said.

An alternative to acquisitions is the signing of more distribution deals such as those with Mexico's Fomento Economico Mexicano SA and Lion Nathan Ltd. in Australia, added van Boxmeer.

Heineken has seen its earnings decline over the past few years due to fierce competition, a weak US dollar that has taken a bite out of its US earnings, and mature western markets where margins are thin.

04 June, 2005