:. Food Industry News

Categories: Mergers and Acquisitions

Heineken Gets Irish OK for Beamish Buy; CEO Worried by Rising Input Costs

Source: FLEXNEWS
06/10/2008

6 October 2008 - Heineken has announced that it has received unconditional approval from the Irish Competition Authority regarding its acquisition of Beamish & Crawford.

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Heineken said it welcomed the decision and would immediately engage with Beamish & Crawford to start the integration process in Ireland.

Founded in 1792, Beamish & Crawford's flagship product is Beamish stout. The company is a subsidiary of Heineken's latest significant share acquisition - Scottish & Newcastle.

Commenting on issues affecting Heineken's business on Friday, Chief Executive Officer Jean-Francois van Boxmeer said that as a result of the Scottish & Newcastle deal, the company will not be looking for new acquisitions. Instead, he said that the company's priority for the next three years is to reduce ratios.

Van Boxmeer added that the greatest challenge at the moment is the rising commodity and input costs, including grains and energy. He said said that variable input costs rose 15% in 2008 and he expects a further 9% increase in 2009. As a result, Heineken may increase prices for its beers.

The CEO also said that his company is feeling the effects of smoking bans accross Europe, particularly in the UK and the Netherlands. Van Boxmeer argued that Heineken's margins are higher from beer sales in bars and cafes, however the firm is growing its sales of beer in supermarkets.



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