Heineken breaks into Ecuador’s beer market

Dutch beer giant Heineken has bought a majority stake in an Ecuadorian brewery for an undisclosed sum.

Guayaquil (Photo: Nomadical/Flickr)

Heineken has acquired shares in Biela y Bebidas del Ecuador S.A – purchased from local investors.

It is the Dutch brewers first acquisition in Ecuador, and paves the way for it to market its international portfolio of brands as well as invest in domestic production and distribution.

The brewery is located in Guayaquil; Ecuador’s largest city. Over the past few years, Biela Ecuador has established its place in the Ecuadorian beer market by re-launching the Biela brand.

Marc Busain, President Americas at Heineken, said: “With its favourable demographics, flourishing tourism industry and GDP growth, it offers a lot of potential to grow our premium offering, led by the Heineken brand. We are excited to grow our business in Ecuador in close collaboration with our new partners.”

Ecuador’s GDP is projected to grow at a 5.7% rate (CAGR) in the next 10 years, according to a representative from Heineken.

In a statement, the brewer said that Ecuador “presents a promising opportunity for Heineken, with a current size of 6 million hectolitres per year and a relatively low consumption per capita of 39 litres when compared to other South American countries.”

“In addition, the Ecuadorian government is supportive of foreign investment and of introducing competition in the beer market.”