HEINEKEN to invest 126 million in future UK brewing, cider making and pubs

10th June 2014

HEINEKEN is to invest a total of £126 million in its UK business. This includes £50m in its Manchester Brewery and £58 million in the Hereford Cider plant; in order to modernise the facilities and expand the capacity at both sites. A further £18m will be invested in upgrading and modernising its Star Pubs & Bars estate. This commitment to the UK market and jobs was highlighted by the Prime Minister David Cameron in a visit to Liverpool today (9th June).

This investment will ensure that HEINEKEN's production facilities remain at the forefront of industry standards to help meet continued demand for its strong portfolio of ciders and beers. Today's announcement demonstrates HEINEKEN's long-term ambition to build on its leading position in the important UK market.

£50 Million investment in Manchester brewery

HEINEKEN Manchester is the world's biggest brewer of Foster's as well as home to Kronenbourg 1664 in the UK. HEINEKEN is spending £50 million to increase brewing production by approximately 2 million hectolitres per annum (around 350 million pints); and on a new kegging line which will provide pubs with quality draught beer. The Manchester Brewery is a strategic production site within its UK brewing network, and the investment will enable HEINEKEN to continue to meet strong customer demand for is brands into the future. The Manchester brewery investment will secure 240 jobs, and work will be completed in the summer of 2015

£58m investment in Hereford cider operations

The investment will create a world class cider production facility capable of supporting HEINEKEN's growth in this exciting and dynamic category. This investment in Heineken's global centre of cider making, will allow HEINEKEN to scale up the export of its ciders to key markets around the world. All UK cider production will be handled on the site, with the fruit milling operation remaining at Ledbury. The Hereford investment will secure 270 jobs in addition to many more within in the local rural economy. The work here will be completed in 2016.

£18m investment in Star Pubs & Bars

Over 2014, HEINEKEN is investing £18.5 million in its Star Pubs & Bars estate, the biggest programme of capital expenditure the estate has ever received. A sixth of the company's 1250 pubs are benefitting from the programme which includes 60 to 70 major refurbishments with an average spend of £135,000 as well as over 100 external signage and redecoration schemes.

Commenting on the investment, David Forde, UK Managing Director of HEINEKEN, said: "HEINEKEN is the UK's leading beer & cider business, a position that we are proud of and determined to build upon. These major investments are a clear demonstration of our long-term commitment to the UK. HEINEKEN is committed to the UK marketplace and investing in the right infrastructure to ensure that we can continue to delight our consumers day-in and day-out with fantastic cider and beer experiences."

The investment announced today follows HEINEKEN's acquisition of 850 pubs at the end of 2011.