Asia Brewery has entered into an agreement to produce Heineken brands in the Philippines. The financial conditions of the agreement with Heineken International have not been divulged.

This agreement will bolster Asia Brewery’s beverage portfolio.

Asia Brewery’s parent firm LT Group informed the regulatory authority that the agreement also includes the setting up of a new joint venture, called AB Heineken Philippines.

"The firm has already commenced distribution of Heineken and Tiger in the Philippines."

Asia Brewery intends to upgrade its two breweries in Cabuyao and El Salvador, Philippines, to produce Heineken’s beers.

The firm has already commenced distribution of Heineken and Tiger in the country.

Heineken Asia Pacific president Frans Eusman said: "This joint venture with Asia Brewery Inc in the Philippines represents a good business opportunity for Heineken. It increases our exposure to another market in the region with strong growth potential."

LT Group chairman Lucio Tan was said: "Our local knowledge and distribution network combined with the brewing and marketing expertise of Heineken will be able to deliver quality beer brands and an exceptional experience for our consumers."

The agreement is subject to customary closing conditions. Operations are slated to begin in the fourth quarter of 2016.

Heineken has a portfolio of over 250 international, local and specialty beers and ciders.

Image: Asia Brewery to brew Heineken brands in the Philippines. Photo: Courtesy of Heineken N.V.