Jamaica’s Red Stripe Beer Sold To Dutch’s Heineken

The Jamaican brewery that makes the popular Red Stripe and Dragon stout brands is now owned by Dutch beer giant Heineken.

and Diageo have agreed a US$780m deal which sees the Dutch brewer take a controlling interest in Jamaican brewery Desnoes & Geddes.

The Jamaican brewery that makes the popular Red Stripe and Dragon stout brands is now owned by Dutch beer giant Heineken.

Heineken announced this week that it has taken control of Desnoes & Geddes (D&G) by acquiring the 57.9 per cent shareholding that Diageo had in the company, bringing its total to 73.3 per cent. Heineken is expected to make a mandatory offer for all other D&G shares in due course, in accordance with the Jamaican Takeover Code.

As a result of the acquisition, the licence to use Red Stripe and Dragon in connection with the manufacture, production, selling, distribution and/or marketing in the United States, the United Kingdom and Canada, will be passed on to affiliates of Heineken from January 1, 2016.

The beer giant’s transaction with Diageo also includes the sale and purchase of shares in breweries in Malaysia, Singapore and Ghana.

“This transaction is mutually beneficial and will allow both parties to concentrate their resources in the individual markets, whilst at the same time providing a framework for ongoing, long-term cooperation,” a statement issued by Heineken said.

“The transaction will bring clear benefits to Heineken. As majority owner, Heineken will be able to drive the investment and strategic direction of the operating companies in and Malaysia. The Caribbean and Southeast Asia are strategically important for Heineken.”

Heineken now has full ownership of GAPL Pte Ltd – the licensee for Guinness and ABC Stout distribution for the Singapore market and owner of 51 per cent of the issued share capital of Guinness Anchor Berhad (GAB) in Malaysia – with the acquisition of Diageo’s shareholding in the company.

Heineken also sold all of its shares in Guinness Ghana Breweries Limited (GGBL) to Diageo, which will increase Diageo’s shareholding to 72.4 per cent. Prior to the transaction, Heineken owned 20 per cent of the shares in GGBL, a manufacturer and distributor of spirits, stouts, lagers and non-alcoholic malt beverages.

Commenting on the overall transaction, Heineken CEO Jean-François van Boxmeer said it represents another important step towards ensuring that the company’s portfolio of assets and participations is “optimally structured to support our strategic agenda”.

“Having greater commercial control in the important regions of South-East Asia and the Caribbean will allow us to maximize the strong potential of our brands in these growth markets. Our close collaboration with Diageo has been very productive over the years and I would like to thank them for their valued partnership,” he added.

The net cash consideration receivable for the transaction is $780.5 million.

Send this to a friend