Heineken NV has embarked on an 865 million reais (US$183.14 million) expansion of its Ponta Grossa brewery in Brazil in a bid to ramp up its production amid the growing competition in the beer industry.
The Dutch brewer said the new brewery, which is set to be constructed beginning this year, will increase manufacturing capacity by 75%.
“We are bringing forward by one year all the investments of our strategic plan. Brazil is a key market for us,” said Mauricio Giamellaro, Heineken Brazil’s Chief Executive Officer.
Despite the recently reported slow in the Brazilian economy, Heineken clarified that it will not delay its investment in the country because it serves as a more important market for sales compared to the United States and Europe.
Media reports claim that Heineken now accounts for 22% of the market in Brazil after significantly reducing the lead of the top-selling beer of its major competitor Anheuser-Busch InBev.
The Netherland-based beer giant doubled its Brazilian output when it bought the operation of Japan’s Kirin for US$1.2 billion in 2017.
Heineken is the world’s second-largest brewer with a capacity to produce 250 international, regional, local and specialty beers and ciders. It currently employs around 73,000 people globally.
Analysts said that Heineken’s investment plan came after AB InBev has announced that it targets to pour 2 billion reais into the opening of a new beer plant and can producing unit in northern Brazil.