SRI LANKA – Heineken, a Dutch multinational brewing company, has announced plans to offload its Sri Lankan subsidiary, Heineken Lanka to the Distilleries company of Sri Lanka (DCSL).
Distilleries Company of Sri Lanka PLC is a Sri Lanka-based company engaged in distillation, manufacture and distribution of liquor products.
Its portfolio of brands include; the Pinacle Argente, Pure Coconut, the Spirit of Sri Lanka, Blended Coconut Spirits, Foreign Offerings, and other international flavours.
Under the agreement, DCSL will acquire shares in Heineken Lanka and agree Trademark Licence Agreements for Heineken’s international brand portfolio in Sri Lanka comprising Heineken, Tiger, and Anchor.
According to the Argente producer, its local knowledge, expertise, production, and distribution of liquor in the Sri Lankan market, combined with the brewing and marketing expertise of Heineken will enable the brewer to deliver beer brands at scale, providing more scale and exceptional experience to the local consumers.
“In recent years, we have been exploring options to transform our business in Sri Lanka in anticipation of future trends in the market.
Our international premium portfolio, comprising the Heineken, Tiger and Anchor brands, is attractive to the Sri Lankan market. We are pleased to have found DCSL, who can realise the full potential of our brands,” said Jacco van der Linde, Regional President APAC at Heineken.
The sell off comes just two months after the Desperados producer offloaded its Russian business to Russia’s Arnest, which makes aerosol cans.
The sale was prompted by the need for the Dutch brewer to pull out of Russia following what many have described as Kremlin’s unjustified invasion of Ukraine.
According to a report by the Dutch brewer, the company was willing to take a loss of 300 million Euros to facilitate completion of the deal.
Dolf van den Brink, Chief Executive Officer, Heineken Ltd said, “It took much longer than we had hoped. But this transaction secures the livelihoods of our employees and allows us to exit the country in a responsible manner.”