Royal Swinkels Family Brewers acquires a minority interest in Georgian brewer Argo

31-07-2019

Existing collaboration via licence agreement expanded to a 40 percent minority interest

Lieshout – Royal Swinkels Family Brewers today announced the acquisition of a minority interest of 40% in the Georgian brewery Argo. By investing in Argo, one of the four leading breweries in Georgia, the family business further expands its current share of 15 percent in the Georgian market. Royal Swinkels Family Brewers first became active in Georgia in 2016 via a licence agreement with local brewery Zedazeni for the Bavaria brand. Subsequently, another licence agreement was concluded with Argo in 2017 for Hollandia, one of the brands of Royal Swinkels Family Brewers.

Next step to a new home market
With this minority interest, Royal Swinkels Family Brewers gives further substance to its growth strategy. The export from the Netherlands and Belgium of different beer brands from their portfolio has been an important pillar of growth for many years and forms part of the company's strategy. In addition, the brewer wants to accelerate its growth in a number of important markets through local production. The minority interest in Argo underlines this strategy and strengthens the long-term interest of Royal Swinkels Family Brewers in Georgia. Eventually this minority interest in Argo will allow for the possibility of acquiring a majority interest making Georgia a new home market for Royal Swinkels Family Brewers in the future.

Peer Swinkels, CEO of Royal Swinkels Family Brewers: “This again is another good step in our growth strategy. The market in Georgia shows great growth potential for our brands. Partly due to the development of tourism here, the beer market will continue to develop in a positive way. Furthermore, the country's interesting position at the border of Europe and Asia offers good export opportunities. Through this minority interest we confirm our successful collaboration with Argo and are looking forward to a more extensive interaction with their management team. We are very pleased with the current collaboration with both Zedazeni and Argo. Two strong partners that produce locally on our behalf in one of our most important regions.”

“The beer market in Georgia is dynamic and growing. Expanding our collaboration with Royal Swinkels Family Brewers will give us the opportunity of playing an even bigger role in this,” Vasili Sulkhanishvili, CEO of Argo added.

About Argo
The Castel Brewery started brewing the first Georgian national beer brand, Argo, in 1994. By now the brewery, currently named 'The Argo Brewing Company', has a portfolio that includes four beers; the eponymous Argo, Herzog, the number one draught beer in Georgia, Hollandia, via the licence with Royal Swinkels Family Brewers, and König Pilsener. The brewery has a production capacity of 1 million hectolitres and employs 335 staff members. In addition to Royal Swinkels Family Brewers, Mr Sulkhanishvili and Coco-Cola also have an interest in the brewery.