Philippines-based beverage maker Asia Brewery has entered into an agreement with Dutch beer producer Heineken International to brew Heineken brands in Philippines.
The financial terms of the deal have not been disclosed.
The partnership facilitates the addition of a premium brand to Asia Brewery's beverage portfolio. The new agreement entails the formation of a new joint venture company AB Heineken Philippines, said Asia Brewery's parent firm LT Group in a regulatory filing.
The venture is viewed as Heineken's move to implement its global policies and approaches with respect to supplier code, local sourcing, water management, employee healthcare, and human rights, community investment and alcohol marketing.
Asia Brewery is planning to upgrade its two local breweries in Cabuyao and El Salvador to brew Heineken brand beers. Meanwhile, Asia Brewery will begin distribution of Heineken and Tiger in the Philippines.
Heineken Asia Pacific president Frans Eusman said: "This joint venture with Asia Brewery Inc. in the Philippines represents a good business opportunity for Heineken. It increases our exposure to another market in the region with strong growth potential."
LT Group chairman Lucio Tan was said: "Our local knowledge and distribution network combined with the brewing and marketing expertise of Heineken will be able to deliver quality beer brands and an exceptional experience for our consumers."
The deal is subject to customary closing conditions and operations are expected to begin in the fourth quarter of 2016.
Heineken is a global beer brewer with a portfolio exceeding 250 international, regional, local and specialty beers and ciders. The company operates 167 breweries, malteries, cider plants and other production facilities in more than 70 countries.
