Brewing family keen to continue manning the pumps at Heineken

Four generations and 150 years on from the founding father of Heineken, the Dutch brewing family shows no signs of wanting to relinquish control.

Begun in 1864 by Gerard Adriaan Heineken with the purchase of a brewery in Amsterdam, the company now has more than 165 plants in over 70 countries and is the world’s third-largest beer maker — yet his great-granddaughter Charlene de Carvalho-Heineken is still wedded to the firm.

The 60-year-old, the family’s leading figure, firmly rebuffed the advance of Heineken’s larger rival SABMiller last Friday about a possible takeover.

A statement said her family intended to preserve the heritage and identity of Heineken as an independent brewer and expressed confidence that the company would continue to deliver growth and shareholder value.

The Heineken family retains a controlling interest in the brewer, Heineken NV, via a tiered holding structure.

The family owns 88.67% of investment vehicle L’Arche Green, which in turn has 51.709% of listed Heineken Holding. That has a 50.005% stake in the brewer.

The family therefore controls the group while holding an economic interest of only about 23%, itself enough for a €118m payout in dividends last year.

Comfortable with their ample wealth, their priority is retaining control of the brewer and there is little obvious reason for them to accept a takeover offer from a rival, regardless of price.

SABMiller may have been willing to welcome the Heinekens/Carvalhos as shareholders in a larger SAB/Heineken combination.

However Trevor Stirling, beverage analyst at Bernstein Research in London, estimates the family would have ended up with about 14% of the combined company, leaving them with a lower stake than tobacco group Altria and the loss of effective control of the business.

Charlene de Carvalho-Heineken, whose principal residence is London, does not seek the limelight, rarely talking about her company or her family’s wealth. Her own net worth is estimated at €9.5bn, putting her 99th in the Forbes list of the world’s richest people.

She is the daughter of Freddy Heineken, who set up Heineken Holding in 1952 and made Heineken a brand recognised around the world.

In the 12 years since Freddy Heineken died and his daughter took charge, Heineken has transformed itself into a truly global business, making almost 20bn litres of beer per year.

With steady expansion in Africa, including Nigeria where it is the leading brewer, a 2010 purchase of the beer business of Mexico’s Femsa and its acquisition of the whole of Asia Pacific Breweries in 2012, it has expanded well beyond its European base, while still being the continent’s biggest beer supplier.

The company says it sells two-thirds of its volumes to faster-growing emerging markets, with brands such as Sol and Tiger. Heineken lager is the top-selling international beer brand, the company’s cider business is growing and more recent innovations include Desperados, a tequila-flavoured beer.