Heineken has created a Costa Rica operational unit that will act as a “regional hub” for the group’s activities in Central America.
The division, Heineken Costa Rica, employs 4,600 people and oversees four manufacturing plants and 13 distribution centres. A new logo for the entity was also unveiled this week (below).
The move follows Heineken’s acquisition of the retail, food and beverage operations of Florida Ice & Farm Company (FIFCO), which completed in January. Heineken Costa Rica will be headed up by MD Rolando Carvajal Bravo, the previous CEO of FIFCO.
The Amsterdam-headquartered group, which had been working with FIFCO in the region since 1986, first announced the US$3.2bn transaction in September last year. The purchase included FIFCO’s assets in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama and Mexico.
CEO Dolf van den Brink called the integration of FIFCO into the new Costa Rican division a “significant moment” that “marks the beginning of a new chapter for our presence in Central America”.
“We are excited to build the future of the business in the region together, connecting the strength of our global brands with the talent and potential of this market, inspired as well by its strong sustainability agenda and deep, unmatched understanding of the market,” he said.
Under the deal, FIFCO sold its 75% stake in Costa Rica’s Distribuidora La Florida – which handled its beverage operations and around 300 retail outlets in the country – as well as its 75% share in Nicaragua Brewing Holding (owner of 49.85% of Compañía Cervecera de Nicaragua) and its 25% interest in Heineken Panama. Heineken also acquired FIFCO’s “beyond beer” business in Mexico and its operations in El Salvador, Guatemala and Honduras.
Heineken and its affiliates now own 100% of Distribuidora La Florida, Heineken Panama and FIFCO Mexico, and 49.85% of Compañía Cervecera de Nicaragua. FIFCO previously said it was exploring “strategic alternatives” for its US unit.
Over in Asia this week, Heineken confirmed that it would no longer brew the Tiger beer brand in its home market of Singapore. The city-state’s unit of Heineken’s Asia Pacific Breweries subsidiary will move to “an import-led supply model”, with its production facility set to wind down brewing capabilities – except for a ‘pilot’ brewery to be used for innovation purposes.
