Heineken’s acquisition in Slovenia will strengthen the position of Karlovačka Brewery in the region

Although the focus of Heineken Croatia’s participation in the “Buy Croatian” event in Zagreb today was the promotion of the new “Karlovačko unpasteurized retro” beer, which aims to return to roots and traditional production to somewhat approach the niche of short-lived but quality beers characteristic of craft breweries, Branka Slaveska, CEO of Heineken Croatia, also reflected on the acquisition of Slovenian breweries Laško and Union by the Heineken Group.

When asked whether this latest Heineken acquisition, in which Heineken also announced a „squeeze-out“ procedure for the complete takeover of the main Slovenian breweries and their brands, would affect the business strategy of the Karlovačka Brewery, Slaveska stated that with the inclusion of Laškog and Union into the Heineken family, there would be mutual support and a synergistic effect with the market presence of Heineken Croatia, and certainly not moves that would lead to mutual rivalry with harmful consequences. On the contrary, Slaveska sees this merging of Slovenian breweries into the Heineken group as a positive circumstance for the Karlovačka Brewery for several reasons.

– I think the most important thing is that with this move, both Heineken and Karlovačka Brewery have gained a strong partner in strengthening the position of the Heineken group in the markets of Slovenia, Croatia, Bosnia and Herzegovina, and even beyond. This opens up the Slovenian market for us, where until now Karlovačko and its other brands have not been present, and where Laško as a brand has performed better than us – says Slaveska.

When asked if there is already a concrete plan for aligning the production and marketing strategy of the Karlovačka Brewery with the previous direct competition it faced in some parts of the Adriatic, Slaveska said that mutual introductions of management and meetings on the topic of redirecting goals in the same direction are yet to come at the level of the Heineken group. Specifically, with the entry of Slovenian breweries into the Heineken community, Slaveska believes that doors to the Slovenian market are opening for the portfolio of Heineken Croatia and the group of Karlovačko brands and the family of radlers. The same applies, Slaveska agreed, to the possible placement of the Amstel brand, which has recently been produced in Karlovac, and is not yet present in the neighboring Slovenian market.

– Therefore, a meeting with Slovenian colleagues is yet to take place to precisely and jointly define what will be best in the new situation for Karlovačko, Laško, and Heineken as a whole – said Slaveska.

For the acquisition of 100% ownership of Karlovačka Brewery, Heineken paid around 123 million euros, and if all minor shareholders sell their shares during the option period of Heineken’s offer, the final price for the acquisition of Laško and Union, which includes 185 million euros of their obligations to banks, would amount to around 408 million euros. However, Branka Slaveska did not engage in a comparison of the prices of these acquisitions, considering that they occurred over a time span of 12 years and under different market conditions.