BRAZIL – Dutch multinational brewing company, Heineken, will inject 1.5 billion reais (US$300.8 million) into expanding its premium and single malt beer portfolios in Brazil.
The planned investment aims to boost the brewer’s production capacity for its Amstel, Devassa, and namesake Heineken brands, spread across two plants in northeast Brazil, the company said in a statement.
The company added that the expansion is owed to Brazilian being among the world’s biggest consumers of Heineken beer brands.
Heineken aims at tripling the Igarassu plant’s capacity for making Amstel and Devassa, while also increasing its returnable packaging lines by 45% and boosting water efficiency in the brewery as part of its goal to reduce water consumption there by 30% over the next three years.
The investment will also expand the group’s Alagoinhas brewery capacity to produce Heineken by 60%, supplementing the Igarassu’s production.
Heineken outlines US$44.8m UK pub investment plan
At the same time, Heineken has pledged a £40 million (US$44.8m) cash injection into upgrading 570 pubs, almost a quarter of its UK venues, in 2023. Heineken runs around 2,400 pubs through its Star Pubs & Bars operation in the UK.
The group said about 100 pubs will receive major revamps costing around £200,000 each as part of the investment program.
The funding will be driven towards its local “neighborhood” pubs, which have witnessed continued popularity amid pressures on consumer finances and shifts in behavior following the Covid pandemic.
Funding will also go towards measures to boost sustainability and reduce energy usage, to help reach Heineken UK’s ambition to be net zero through its supply chain by 2040, as well as combating soaring energy costs.
Investment minister Lord Johnson said: “Heineken’s investment is great news, not only creating hundreds of new jobs and improving pubs up and down the country but also making a contribution to our net zero targets.”
Lawson Mountstevens, managing director of Star Pubs & Bars, said it is particularly important to continue investing in its venues despite the “uncertain” consumer backdrop.
“We know from previous economic downturns that when customers’ disposable income is squeezed, they look for an exceptional experience when they go out. Great ambiance and attractive surroundings are key and contribute to the value for money that pubgoers seek,” he noted.
“It’s more important than ever to invest during uncertain times like these, to keep pubs thriving and meeting the needs of their communities. Our investment is a vote of confidence in the great British local.”
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