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    You are here: Company information - Harar Brewery SC, Heineken Group

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    Company information

    Harar Brewery SC, Heineken Group

    Ethiopia, Harar

    24.07.2013   Heineken and NOC*NSF confirm Holland Heineken House 2014    ( Company news )

    During the Olympic Winter games at Sochi 2014 the Holland Heineken House will once again be the home base for athletes and their families, media, sponsors and fans. There has been some speculation recently about whether there would be a Holland Heineken House in Sochi, but today Heineken and NOC*NSF have confirmed that a suitable location has been found, meeting both the unique requirements of 'a house' and conforming to high quality standards. The Holland Heineken House in Sochi will be situated on the edge of the Olympic Parc and will literally have a view of the Olympic Games as they unfold. In Sochi, the Holland Heineken House will open its doors to an Olympic crowd for the 12th time since 1992. And the thirteenth edition is already being discussed: Heineken and NOC*NSF have extended their partnership through to the Summer Olympics in Rio de Janeiro in 2016. On the occasion of this extension, the iconic tulip logo has been redesigned.

    Gerard Dielessen, Managing Director NOC*NSF: "We win a lot with sports! And we definitely will win during the Olympic and Paralympic Games at Sochi 2014 and in Rio in 2016. That is why I am delighted to be able to extend our successful partnership between Heineken and NOC*NSF through to 2016. We will be delighted to welcome, together with Heineken, all Dutch athletes and guests at the Holland Heineken House, both in Sochi and in Rio. This is excellent news for our athletes, our fans and everyone that wishes well for our teams!"

    Philip de Ridder, Managing Director HEINEKEN Netherlands: "As a proud Dutch brewer I am delighted that we will be able to offer the fantastic Holland Heineken House experience again during the Sochi Olympic Games. This has become a tradition appreciated by many: 'the house' is firmly part of our Heineken roots now, it has become a 'home away from home' for many during the Games. Our standards when selecting a location are very high, we do not want to settle just anywhere, so being able to land a good spot is not always a given. With the support of our team at HEINEKEN Russia, we have managed to find a location adjacent to the Olympic Parc, what more could we wish for! And being able to at the same time extend the contract with NOC*NSF until Rio 2016 is a great result. The natural fit between NOC*NSF and Heineken is perfectly symbolised by the more prominent role the Olympic Rings have been given in our new logo."

    The Holland Heineken House is an iconic concept, which quite literally is as solid as a house. And yet, some new features will be added in Sochi.

    Bram Westenbrink, Marketing Director for Heineken Netherland, elaborates: "The Holland Heineken House is something to be proud of. It not only is a statement of what our brand stands for, but is also provides a platform for Dutch pride - the very special "Orange Spirit" that has made us famous well beyond our national borders. In Sochi we aim to take the "Orange Spirit" even closer to our visitors. We have come up with some innovative concepts that we will be showcasing soon by way of a virtual tour of the Holland Heineken House. "

    The Holland Heineken House will encompass several facilities, such as restaurant areas, reception rooms for sponsors, rooms for athletes, media-facilities, an information desk and facilities for NOC*NSF. During the day there will be plenty of things to see for visitors. Of course both the opening ceremony and the closing ceremony will be screened live, as well as all relevant competitions. Additionally, more news than ever before will be shared from 'the house' with sports fans in the Netherlands.
    (Harar Brewery SC)
    08.08.2011   Ethiopia: Heineken International to expand on Ethiopian beer market by takeover of two local breweri    ( )

    Heineken International, the leading Dutch brewing company, will sign next week an agreement with the Ethiopian privatisation and public enterprise supervision authority (PPESA) for the purchase of two local breweries – Harar Brewery SC and Bedele Brewery SC – for more than US$ 163 million, The Africa Report announced on August, 1.

    The deal to buy the two breweries was reached early this year after months of negotiations.

    According to PPESA, Heineken’s bid to buy Harar and Bedele for US$ 78.18 million and US$ 85.24 million, respectively, was approved in April.

    Heineken’s bid for Harar Brewery was won without competition but it had to brush aside three competitive bids for Bedele.

    The Dutch giant beat a US$70 million dollar bid from South-West Development, a US$ 68 million challenge from BGI and a US$ 64 million offer from Carlsberg.

    Heineken will continue to brew local brands such as Bedele, Harar and Hakim Stout, which have a combined market share of 18% in Ethiopia.

    The deal will make the company the second biggest brewer in Ethiopia, after BGI Castel, which has a 50% market share.

    Harar brewery is located in the historical town of Harar about 530 km east of Addis Ababa, and is the only brewery in the eastern part of the country.

    It is the closest brewery to the Djibouti and Somalia ports, giving the company a chance to export.
    15.07.2011   Ethiopia: BGI Ethiopia to conquer northern market by acquiring 25pc of Raya Brewery’s shares    ( )

    Failing to acquire two state owned breweries, Harar Brewery and Bedele Brewery, and losing them to its archrival Heineken, BGI Ethiopia has secured a deal its managers believe will help them conquer the northern market, Addis Fortune reported on July, 3.
    BGI managers signed a memorandum of understanding on Friday, July 1, with promoters of Raya Brewery, claiming 25pc of the 650 million Br green project to establish a brewery in the northern town of Maichew, Tigray Regional State.
    The deal was signed between Eyessuswork Zafu, deputy chairman of Raya Brewery, and JN Blavier, CEO of BGI Ethiopia, as well as Jobst Meyer Zu Beisen, CEO of Brewtech, a founding partner based in Hamburg, Germany, which Raya brought on board by conceding 26pc of the company in August 2010.
    Both Eyessuswork and Blavier signed the document in their own offices, with Beisen using Raya’s, source disclosed to Fortune.
    Brewtech has agreed to pay 65 million Br for 65,000 shares, each valued at 1,000 Br, and will undertake the turnkey project for the engineering, procurement, and construction (EPC) of the plant.
    The plant will be the first to be installed in the northern part of the country, in Alamata Wereda, 600km north of Addis Ababa. When completed, the brewery will have an annual production capacity of 600,000 hectoliters, 16.7pc of the total current production in the market, bottled by the five operational breweries, among which BGI is a major actor.
    “The potential of establishing a strong identity base by being the only brewery in the region and the availability of a mountain spring close by prompted our company to become involved,” Beisen had said previously.
    Brewtech first came on board as a partner to install and manage the soon to be established Raya, but its continued inclusion has been one of the issues of negotiations between promoters of the brewery and BGI negotiators.
    The promoters of Raya are chaired by Tsadikan G. Tensae (Lt Gen), a former chief of staff of the Ethiopian Army who was not in the country when the MoU was signed last week, while BGI’s negotiators include Isayas Hadera, the company’s marketing manager.
    Raya Brewery was established by 58 founding shareholders, including Yemane (Jamaica) Kidane, former chief of staff at the Ministry of Foreign Affairs (MoFA); Selome Tadesse, former general manager of the Ethiopian Television and Radio Enterprise (ETRE); and Eyessuswork, general manager of United Insurance and president of the Ethiopian Chamber of Commerce and Sectoral Associations (ECCSA), in April 2010, with a registered capital of 2.5 million Br.
    Named after the town where Tsadikan spent his early school years and the area where its plant is to be erected, the project has secured a 150,000sqm plot of land, lease free, from the Tigray administration.
    Despite their success in securing such a vast plot with lush green land where there is proven ground water, success in mobilizing equity from the public has proven elusive.
    The group has only had marginal success in rising up to 80 million Br subscribed shares, of which 60 million Br is paid up, according to sources in the company.
    “The coming into the picture of BGI means a lot to our drive to raise more capital from the market,” a promoter told Fortune.
    BGI has to accept the terms dictated by the promoters, according to those close to the negotiations.
    Ethiopia’s foremost brewer, with a treasure brand of St. George acquired from the state back in the 1990s for 10 million dollars, had to agree not to change the color and logo of the brand. Yet, the operational management of Raya will remain with Brewtech, as the latter has agreed to run the company for five years.
    It is a price BGI appears to be happy with paying in order to keep its hold in the Ethiopian beer market, perhaps threatened by the arrival of Heineken. The latter has acquired Harar and Bedele breweries from the state, beating the bid put in by BGI, after offering 2.7 billion Br.
    BGI Ethiopia remains the country’s largest brewer, after adding a new plant in Hawassa, 273km south of Addis Ababa, with a capacity of producing 400,000hl. This addition brings its annual beer production to 1.9 million hectoliters, commanding a little over half of Ethiopia’s beer market.
    Its joining hands in a green project that eyes to brew 300,000hl will not only add to its production capacity but pave the way for it to have access to the northern market which is now controlled by its brand, St George, and its competitor, Dashen, where it once owned shares, industry experts said.
    Having the production capacity of over two million hectoliters will certainly give BGI Ethiopia a competitive edge over its most feared rival, Heineken, whose two breweries have a combined annual production capacity of 750,000hl.
    BGI’s acquiring shares in Raya is hoped to make a sixth brewery in the Ethiopian market a reality.
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