LT Group Inc. said unit Asia Brewery Inc. is revising its arrangement for the local production and sale of Heineken and Tiger beers.
LT Group said under the new agreement between Asia Brewery and Heineken International B.V., which owns the Heineken and Tiger brands, the former will now limit its role in the partnership to brewing and distribution of the beer.
Heineken will establish a sales and marketing office based in Manila which will engage Asia Brewery for the brewing and its distribution in the country.
“The expected date for the completion of the process is 31 December 2020,” LT Group said.
In May 2016, Asia Brewery signed a joint venture agreement with Heineken for the local production of Heineken. LT Group then said the partnership “will be driving further premiumisation” of its brand portfolio.
The partnership called for the establishment of a joint venture company, AB Heineken Philippines Inc., to implement Heineken’s “global policies and approaches in relation to supplier code, local sourcing, water management, employee healthcare and human rights, community investment and responsible alcohol marketing.”
With the new arrangement to be implemented, LT Group said: “The immediate priority for Asia Brewery and Heineken is to ensure a smooth transition for the employees of AB Heineken Philippines and continuity for its customers and suppliers.”
The company said the Philippines continues to present a “good long-term business opportunity for Heineken” and that both Asia Brewery and Heineken remain committed to continue offering Heineken and Tiger beers to consumers in the country. (R. Castro)
