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Business planning

Heineken and Femsa Form US Distribution Partnership

Strategic Insights

— 1 min read

The brewing landscape in the Americas has been reshuffled in recent months, with Dutch brewer Heineken joining forces with Mexican beverages group Femsa in the US through a distribution partnership. This move comes after Interbrew, Heineken's Belgian rival, severed ties with Femsa earlier this year due to a dispute over their joint venture. The new partnership will see Heineken's US arm become the sole distributor of Femsa's brands, including Sol, Dos Equis, and Bohemia beer, for the next three years. The deal aims to expand Femsa's brands beyond their traditional southwestern market, with a focus on increasing sales east of the Mississippi River.

Key Takeaways:

  • Heineken has partnered with Femsa, the Mexican beverages group, in the US for a three-year distribution deal.
  • The partnership will make Heineken's US arm the sole distributor of Femsa's brands, including Sol, Dos Equis, and Bohemia beer.
  • Heineken aims to expand Femsa's brands beyond their southwestern market, with a focus on increasing sales east of the Mississippi River.
  • The partnership would account for approximately 26% of the imported beer segment in the US, according to Heineken.
  • The deal is the latest example of the changing brewing map of the Americas, with Interbrew's relationship with Femsa having dissolved earlier this year.
  • Heineken's member of the executive board, Marc Bolland, stated that there was no ulterior motive behind the partnership, with the US distribution deal standing on its own merits.
  • Heineken has also signed an Australian sales and distribution deal with Lion Nathan last month.

Statistics:

  • The partnership would account for approximately 26% of the imported beer segment in the US (Heineken).
  • Femsa's brands, including Sol, Dos Equis, and Bohemia beer, will be distributed by Heineken's US arm.
  • The distribution deal is for a period of three years.
  • Heineken's US sales of Femsa's brands will be expanded east of the Mississippi River.
  • The deal follows the dissolution of Interbrew's relationship with Femsa earlier this year.

Sources:

  • "Heineken, Femsa form US distribution partnership," by Adam Jones, London, (no date provided)
  • "Heineken signs Australian sales and distribution deal with Lion Nathan," (no date or publication provided)

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