Heineken, the world's second-largest brewer, has said it will invest 1.5 billion reais (€273 million) in Brazil as part of an expansion plan for its premium and single malt beer portfolios.
Brazilian beer drinkers are among the world's biggest consumers of Heineken, according to the company.
The planned investment aims to boost the brewer's production capacity for its Amstel, Devassa and namesake Heineken brands, spread across two plants in northeast Brazil, the company said in a statement.
Triple Capacity
Heineken said spending on its Igarassu plant will triple its capacity for making Amstel and Devassa, while also increasing its returnable packaging lines by 45%.
The company's Alagoinhas brewery is seen expanding its capacity to produce Heineken by 60% with the new investment.
The spending plan will also help make water use at the Igarassu brewery more efficient, including a goal to reduce water consumption there by 30% over the next three years, the company said.
First-Quarter Performance
Heineken recently announced that at group level, its outlook for the full year has remained unchanged, it added, with Heineken expecting to grow operating profits by mid- to high-single digits.
It said that beer volumes fell by 3.0% in the January to March period, below the average expectation of a 1.9% decline in a company-compiled poll.
Revenue growth stood at 9.2% for the period, with CEO Dolf van den Brink noting that the the economic environment is "volatile and uncertain, making us vigilant and focused".
Read More: Heineken Says First Quarter Beer Sales Were Weaker Than Expected
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