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Heineken is to increase capacity at one of its breweries in Brazil as the company ramps up competition in the country with Anheuser-Busch InBev.

In an interview with Reuters yesterday, the Dutch brewer’s Brazil chief executive said the company will invest BRL865m (US$186m) in expanding the Ponta Grossa production site. Annual production will subsequently increase by 75%.

A Heineken spokesperson confirmed the Reuters report to just-drinks.

“We are bringing forward by one year all the investments of our strategic plan, Heineken’s Brazil CEO, Mauricio Giamellaro, told Reuters. “Brazil is a key market for us.”

The news comes a day after A-B InBev’s Brazilian unit, AmBev, reportedly announced it will spend BRL2bn on new production facilities including a new brewery in the north-east, a malting factory in the south-east, as well as a canning line and new premium beer production lines, according to Reuters. The company is targeting growth in its premium portfolio.

In A-B InBev’s full-year results, released last month, Brazil sales were up 7% as volumes increased by 5%. Heineken also enjoyed a strong 2019 in Brazil, where volumes in the country jumped by double digits. Brazil is now Heineken’s largest market by volume for its namesake lager brand. 

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