Heineken invests £126m to increase UK production

The group is spending £50m on its Manchester brewery, where it produces Foster’s and Kronenbourg 1664, in a bid to increase production by 2 million hectolitres, equivalent to 350 million pints, from 3.5m hectolitres at present.

In 2011 Heineken bought 850 tenanted pubs from Royal Bank of Scotland for £422m, while the company also inherited a large portfolio of inns from its joint deal for Scottish & Newcastle with Carlsberg. The company has recently been in talks to trim around 10pc of its less desirable properties.

Heineken has a 41pc share of the cider market in the UK and accounts for around a quarter of the total beer market.

David Forde, UK managing director of Heineken, said: “These major investments are a clear demonstration of our long-term commitment to the UK. ”

Earlier this year, Heineken’s Western European chief, Alexis Nasard, hinted at a significant investment in the UK in an interview with The Telegraph, as part of a wider focus on the continent, which a few years ago was overshadowed by booming sales in regions such as Asia and Latin America.

Mr Nasard said in January : “In the last two years it became an international sport to do Europe-bashing.

“If you start thinking about the fundamentals of Europe, it’s 6pc of the world population with 30pc of the world GDP. It’s a very rich continent with consumers who have deep pockets. The public narrative about the world economy in our view became a little bit binary. If you are exposed to emerging markets, you are good, if you are not, you are bad.

“I find that too simplistic. Not all emerging markets are born equal.”

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