HEINEKEN LOOKS FOR ISLAND LOVE

HEINEKEN is broadening its horizons and heading to the islands. The Dutch brewer recently completed the purchase of Jamaican lager Red Stripe from drinks company Diageo for $78O.5 million. The deal entails Diageo offloading its brewing companies in Jamaica, Malaysia and Singapore, to Heineken. Under the agreement, Heineken acquired 57.9% stake in Diageo’s Jamaican brewer Desnoes & Geddes, which produces Red Stripe and Dragon brands. The latest move takes Heineken’s stake in the Jamaican assets up by 15.5% bringing the total ownership to 73.3%. It is believed that Heineken will make a full bid in the near future to gain the full control over the Jamaican assets. The exchange of assets also includes the sale of Heineken’s stake in Guinness Ghana Breweries to Diageo. The drinks company plans to focus on its African business expansion, although there is speculation about Guinness’ continuation in its portfolio as it accounts for less than 1O% of group sales, as the company shifts it concentration on spirits.