Heineken Acquires Tango Brewery in Algeria
The company employs 350 staff and operates a modern brewing facility in Rouiba, 30 km from Algiers, the capital of Algeria. The brewery has been operational since 2001 and has a production capacity of 750,000 hectolitres.
15/01/08 Heineken N.V. has announced the acquisition of the Tango Brewery in Algiers, Algeria.
Heineken will acquire Tango sarl from the Group Mehri. The acquisition price has not been disclosed. The transaction has been funded from existing cash resources and will be earnings enhancing in 2008 and value enhancing in 2012.
The company employs 350 staff and operates a modern brewing facility in Rouiba, 30 km from Algiers, the capital of Algeria. The brewery has been operational since 2001 and has a production capacity of 750,000 hectolitres. The brand portfolio consists of the leading national mainstream beer brand Tango, and two brands in the economy segment, Samba and Fiesta. The combined volume of the acquired brands and Heineken totals 140,000 hectolitres. The Heineken brand, currently imported, will be brewed in Algeria from 2008.
Tom de Man, Regional President Africa and the Middle East, Heineken N.V., commented: “With this acquisition, Heineken obtains the number one mainstream beer brand, Tango and becomes the strong number two player in the fast growing and profitable Algerian beer market. Given its strong brand image, we expect the Heineken brand to perform strongly in the market’s large premium segment.”
The current growth of the Algerian beer market is approximately 10% per annum based on a total volume of 1.1 million hectolitres in 2007. Current per capita consumption is 3.2 litres.
