Heineken has gained full operational control of United Breweries Limited (UBL) in India following the acquisition of additional shares in the Kingfisher lager owner in June.
The decision comes after UBL’s annual general meeting on 29 July and will see UBL become an operating company of Heineken.
On 23 June, Heineken acquired an additional 39.6 million ordinary shares in UBL – taking its shareholding interest from 46.5% to 61.5%.
As part of the Heineken group, the Dutch brewer says Kingfisher will become a top five global brand.
According to Heineken, India offers an exciting long-term growth opportunity as per capita beer consumption is low at 2 litres per year. Meanwhile, the company added that the growing population includes a strong emerging middle class which will enable further premiumisation.
“UBL has a proud history dating back more than a century as an influential shaper of the beer industry in India,” said Dolf van den Brink, chairman and CEO of Heineken.
He added: “It built its position as the undisputed market leader in India with a strong network of breweries across the country and a fantastic portfolio led by its iconic Kingfisher brand family, complemented more recently by a strong Heineken international brand portfolio.
“We are honoured to build on this legacy and look forward to working with our colleagues at UBL to continue to win in the market, delight consumers and customers and unlock future growth.”
Heineken expects the consolidation of UBL will have a small accretive effect on its EPS and a dilutive effect on operating profit margin.
The company released its half-year financial results today, posting 109.3% organic growth in operating profit.
© FoodBev Media Ltd 2021
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