Entry Mode of Asian Pacific Breweries Essay

Published: 2020-02-15 03:52:34
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Singapore: Asian Pacific Breweries first started out in Singapore as a Joint-Venture between Heineken International and Fraser and Neave in the year 1931 and is first known as Malayan Breweries Limited. New Zealand: Asian Pacific Breweries made a 50-50 joint-venture with DB Breweries Ltd which was previously known as DB Group Ltd which is one of the two main brewers in New Zealand and also provides contract packaging services. Cambodia: Asian Pacific Breweries formed a joint-venture with Progress Import and Export which formed Cambodia Brewery Ltd in recognizing that there is a strong beer culture in Cambodia with impressive growth prospect.

It was also the first foreign investment to be approved by the Cambodia Investment Board. China: Asian Pacific Brewery formed a 50-50 joint venture with its shareholders, Fraser and Neave, Limited and Heineken in China known as Heineken-APB (China). HAPBC also wholly owns sales and distribution arm of Heineken Trading (Shanghai) Co. Ltd and holds 21% interests in Kingway Brewery Holdings Ltd and 49% stake Jiangsu DaFuHao Breweries Co. Ltd. Laos: Asian Pacific Breweries opened a brewery in Laos through a joint venture with the Government of Laos and SBK Consultant Ltd on the 12 March 2008.

LAPB also imports and distributes Heineken in Laos as the brewery does not produce Heineken beer. Malaysia: Guinness Anchor Bhd was a result of the merger of Guinness Malaysia Bhd and Malayan Sdn Bhd whose parent company is the current Asian Pacific Brewery. Mongolia: Asian Pacific has also formed a 55-45 joint venture with MCS Holdings LLC on 19 June 2007. The company of the joint venture, MCS-Asia Pacific Brewery LLC is five hectares large and is located in Mongolias capital city, Ulaanbaatar.

Thailand: Asian Pacific Breweries entered Thailand, where the beer consumption is amongst the highest in Asia to form a joint-venture with Thai Life Insurance Company Limited and Thai Pure Drinks Company Limited. The brewery first started brewing only Heineken beer in 1995 and slowly adding the other famous brands from Asian Pacific Breweries to cater to the different consumers in Thailand. Acquisition Indonesia: Asia Pacific Brewery has acquired its place in the beer industry in Indonesia through PT Multi Bintang Indonesia Tbk (MBI).

MBI is a key brewery in Indonesia and is listed on the Indonesia Stock Exchange. New Caledonia: Asia Pacific Brewery holds a 87. 3% stake with New Caledonia via Grande Brasserie de Nouvelle Caledonie (GBNC). GBNC is a resulted from the merger of 2 companies and now the sole brewery of New Caledonia. Papau New Guinea: Asia Pacific Brewery acquired a stake of South Pacific Brewery Ltd in 1955. SPB is the sole brewery in Papua New Guinea since 1983 and oversees 2 plants. Sri Lanka: In September 2005, Asia Pacific Brewery has acquired a 60% stake in Asia Pacific Brewery (Lanka) Limited.

It was done with a partnership with Sri Lankan-based Anandappa family group and associates and MBL Offshore Limited which is a wholly owned subsidiary of Pheonix Beverages Limited, a leading beverage group from Mauritius. Vietnam: Asian Pacific Brewery has a 60% stakes in Vietnam Brewery Ltd which is started is 1993 and equipped with the fastest, biggest and most advance canning line in Vietnam. India: Asia Pacific Brewery also acquired a 76% stake in Indias Aurangabad Breweries in 2006. Wholly owned

Vietnam: Asian Pacific not only acquired a brewery in Vietnam, it also has a wholly owned brewery of its own based in Vietnam. Asian Pacific Brewery (Hanoi) is commissioned in October 2003 and it supplies Vietnam of its Tiger Beer, Anchor Beer and Heineken. Asia Pacific has mostly joint ventures in their businesses in other countries. This might because Asia Pacific Brewery has taken into consideration of the improvements of efficiency through the combined efforts and strengths of the other companies.

Also, APB will be able to benefit from the local knowledge of the host country as they will be working with people from there to share and gain more knowledge. Having a joint venture business also means lower risks as costs are shared amongst the partners. APB also gained entry into other countries using the acquisition method. This might be because it a less risky for countries that are not yet very stable and also it is quicker to get into the business.

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