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» Beverage Industry News » Heineken & FEMSA Renew Vows

Heineken & FEMSA Renew Vows

Beverage Industry News» Beverage Industry Newsposted May 2nd, 2007 12:00:00AM by Pat Hagerman

Heineken N.V. and Fomento Economico Mexicano, S.A.B. de C.V. (“FEMSA”) has announced that Heineken USA and FEMSA Cerveza have extended their existing three-year relationship in the United States for a period of ten years. Heineken will continue to be sole and exclusive importer, marketer and seller of the FEMSA beer brands, Dos Equis, Tecate, Tecate Light, Sol, Bohemia and Carta Blanca in the United States.

The agreement will become effective January 1, 2008 and will run until December 31, 2017. The new agreement sets the conditions for strong volume growth and brand development driven by increased marketing investment while providing attractive business and economic terms for both companies. Heineken will receive an increased share of the profitability while FEMSA will receive a payment for the exclusive distribution rights.

In 2006, Dos Equis has grown 20 percent, Tecate 12 percent and the Dutch portfolio 14 percent by volume. The combined market share of the Dutch portfolio and the FEMSA Mexican portfolio in the imported beer segment in the United States is approximately 29 percent.

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Pat Hagerman

Posted by Pat Hagerman

Pat Hagerman is co-founder of ProBrewer.com. When he's not leading operations for ProBrewer you can find Pat working on Internet of Things (IoT) infrastructure and systems. If you're having a beer with him ask about some of the more original skills he's taught Alexa.

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