Heineken vows to protect Tiger's Singapore heritage
Dutch brewer Heineken has given reassurances that it will protect and promote the Tiger beer brand. The company made its comments in the wake of concerns that the Tiger brand could lose its lustre if a foreign firm ends up owning the Singapore brew.
John Clarke, Heineken’s head of external communications, said: "We don’t change the identity of a brand. Tiger Beer will always have a Singapore heritage. When we acquire a company, we look at the brands and how to make them stronger."
How the battle of the beer behemoths – Thai Beverage and Japan’s Kirin are also eyeing the plum prize of Asia Pacific Breweries – will play out should be clearer today.
That is when the board of conglomerate Fraser & Neave must decide on an offer from Heineken of 50 Singapore dollars (Bt1,260) each for its APB shares – and dismantle an 81-year partnership.
Heineken and F&N started APB as a joint venture in 1931 and own 64.8 per cent of the company through Asia Pacific Investment.
If the board recommends that F&N sell, Heineken will end up owning all of Asia Pacific Investment and F&N’s 7.26-per-cent stake in APB. Heineken, which separately owns 9.49 per cent of APB, would be required to make a takeover offer for the rest of the shares. That could lead to full ownership of APB.
As well as underlining support for the Tiger brand, Clarke noted that one of Heineken’s methods of expanding in various countries was through joint ventures. It builds a relationship over time while acquiring expertise of operating in the country. He referred to Heineken’s purchase two years ago of Mexico brewer Cuauhtemoc Moctezuma. Heineken worked with CM through licensing agreements for several years before acquiring it.
Almost 20 of CM’s managers are now in senior positions, working outside Mexico.
Heineken and Tiger have a market share of 32 per cent of the premium beer business in Asia.
