The Australian beer sector has a new competitive player with the announcement today of the formation of a joint venture between Heineken and Lion Nathan.
The fit between Heineken and Lion Nathan Australia is based on Heineken’s success in growing its share of the premium sector of the Australian beer market, combined with Lion Nathan Australia’s local brewing capabilities and national sales and distribution expertise.
The joint venture, Heineken Lion Australia, brings the companies together in a sales and distribution deal, which also involves the option to brew Heineken and potentially other Heineken company brands in existing Lion Nathan Australia breweries. Heineken Lion will be fully operational by 1 July 2004.
The Heineken Lion Australia joint venture creates an extensive distribution platform, whereby a precinct sales force has been established to sell the combined portfolio of brands in the major metropolitan areas (Sydney, Melbourne, Brisbane, Adelaide and Perth). In addition the existing Lion Nathan sales force will sell the Heineken brand in other non-metropolitan areas.
Lion Nathan Australia will combine its local brands and specialties (including Hahn Premium and James Squire Pilsner) with the strength of the Heineken brand presenting an attractive and compelling portfolio of quality brands.
The premium beer sector in Australia represents 9.7% of the Australia beer market and is one of the fastest growing segments, with 2003 volume up 13% over 2002.
Mr Thony Ruys, Chairman of the Executive Board of Heineken N.V. in Amsterdam said of the agreement with Lion Nathan, "This joint venture provides us with a strong and competitive portfolio of brands combined with an excellent distribution platform that now allows us to realize the potential of this rapidly growing premium sector".
Managing Director of Heineken Australia, Mr Hans-Erik Tuijt will be the Managing Director of Heineken Lion. "This is a natural evolution for Heineken in Australia. Based on the success of the Heineken brand here, we now know that Heineken has the potential to substantially grow its share in this market. This joint-venture operating structure will allow us and Lion Nathan to realize that potential", Mr Tuijt said.
"Our enthusiasm for the joint venture is borne from the potential for growth in this market and fuelled by building premium capabilities to address this growth", comments Andrew Reeves, CEO Lion Nathan Australia.
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