Ambev Stock – Heineken to expand production as Brazil battle heats up

Heineken is to increase capacity at one of its breweries in Brazil as the company ramps up competition in the country with Anheuser-Busch InBev. Heineken’s namesake lager sells more volumes in Brazil than in any other country . In an interview with Reuters yesterday, the Dutch brewer’s Brazil chief executive said the company will invest BRL865m (US$186m) in expanding the Ponta Grossa production site. Annual production will subsequently increase by 75%. A Heineken spokesperson confirmed the Reuters report to just-drinks. “We are bringing forward by one year all the investments of our strategic plan, Heineken’s Brazil CEO, Mauricio Giamellaro, told Reuters. “Brazil is a key market for us.” The news comes a day after A-B InBev’s Brazilian unit, AmBev, reportedly announced it will spend BRL2bn on new production facilities including a new brewery in the north-east, a malting factory in the south-east, as well as a canning line and new premium beer production lines, according to Reuters. The company is targeting growth in its premium portfolio. In A-B InBev’s full-year results, released last month, Brazil sales were up 7% as volumes increased by 5%. Heineken also enjoyed a strong 2019 in Brazil, where volumes in the country jumped by double digits. Brazil is now Heineken’s largest market by volume for its namesake lager brand. 


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