Asia Brewery Inc. (ABI) has signed a joint venture on Friday, May 27 with Dutch beer maker Heineken International B.V. to brew Heineken brands locally, an addition to ABI's varied beer portfolio.

Under the agreement, ABI and Heineken will form a company called AB Heineken Philippines, which will start operating in the fourth quarter this year. Furthermore, ABI's two breweries in Cabuyao, Laguna, and El Salvador, Misamis Oriental, will be upgraded to brew the international brand. The financial terms of the agreement have not been disclosed, and the deal remains subject to customary closing conditions.

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For the meantime, ABI will start distributing Heineken and Tiger in the Philippines, the company announced to the Philippine Stock Exchange on Thursday.

The collaboration is seen as an attempt to implement Heineken's global policies with regard to supplier code, local sourcing, water management, employee healthcare and human rights, community investment, and responsible alcohol marketing, according to the Inquirer.

"This joint venture with Asia Brewery, Inc. in the Philippines represents a good business opportunity for Heineken. It increases our exposure to another market in the region with strong growth potential," Frans Eusman, Heineken Asia Pacific's president, said.

Meanwhile, LTG chair Lucio Tan said: "Our local knowledge and distribution network combined with the brewing and marketing expertise of Heineken will be able to deliver quality beer brands and an exceptional experience for our consumers."

Heineken is one of the biggest brewers in the world with over 250 international, regional, local and specialty beers and ciders. It has more than 150 breweries, malteries, cider plants and other manufacturing plants across 70 countries.

TagsHeineken, Asia Brewery, Beer, Philippines, beverage, tiger