Brazil: Heineken begins modernisation of its Minas Gerais brewery

The Heineken Group has begun the modernisation process at its brewery in Passos, Minas Gerais, and expects to start bottling beer in the coming months. The operation aims to increase capacity amid strong demand for premium beers in the country, Valor International reported on June 30.

The project was initially announced in December 2020 with a budget of R$1.8 billion—the group’s largest local investment since arriving in Brazil in 2010. Recently, the plan was modernized, and the figure was raised by 39%, bringing the total investment to R$2.5 billion.

Mauro Homem, vice president of sustainability and corporate affairs for the Heineken Group, told Valor that the new plant will help serve Minas Gerais—currently one of the group’s most important markets—which until now has been supplied by operations in Ponta Grossa (Paraná), Araraquara (São Paulo), and Jacareí (São Paulo). The local factory, he said, represents a significant logistical advantage.

The commissioning of the production line—the phase in which raw materials are integrated into industrial equipment—has just begun. This stage is critical for inspecting systems and ensuring the operation is fully functional.

“The Passos brewery will enable Heineken to continue its evolution in Brazil,” said Mr. Homem.

Since acquiring Brasil Kirin in 2017, the group has expanded its portfolio in the country. “We have reached a point where, fortunately, we need more capacity. No matter how much we increased investment in other plants, we would need more,” said Mr. Homem. This will be the company’s 15th factory in Brazil.

The group intends to use the new operation primarily to serve Minas Gerais, one of its largest markets. The plant will also help supply southern Bahia, the interior of São Paulo, and Rio de Janeiro.

“This factory will be among the top three Heineken beer producers in Brazil,” said Mr. Homem.

In total, the facility will deliver 5 million hectolitres—or 500 million litres—per year, divided between the Heineken and Amstel brands.

Mr. Homem said the project will serve as one of the group’s benchmarks in sustainability. As a greenfield asset—built entirely from scratch—Heineken was able to incorporate new production technologies. The modernization of these processes was one of the factors behind the group’s decision to increase its investment by 39%.

On June 26, Heineken executives and officials from the state of Minas Gerais participated in an event in Passos to mark the beginning of a new phase of the project. At the same time, the state government and the city are advancing road infrastructure projects to connect the factory with major highways. The construction linking Highway MG-050, at km 347, and MG-146, at km 407, was recently completed and is set to be fully open to traffic in July, when production inputs are expected to arrive.

Heineken’s original plan, announced in December 2020, was to build the factory in Pedro Leopoldo, in the metropolitan area of Belo Horizonte. However, shortly after receiving environmental approvals, ICMBio placed an embargo on the area, citing the risk of damage to a cave complex where Luzia—the oldest human skeleton discovered in the Americas—was found.

After a prolonged back-and-forth, the company abandoned the Pedro Leopoldo site and signed a cooperation agreement with the Public Prosecutor’s Office, valued at R$300,000, to help fund preservation efforts. Passos was announced as the replacement site in April 2022.

The group’s investment in a new facility comes at a critical moment for the premium beer market, which continues to expand. In contrast, the mass-market segment has remained stagnant in Brazil—a weakness acknowledged by the group’s global executives during a recent conference call.

Heineken closed the first quarter of this year with a 3.7% decline in beer volume in the Americas, totaling 20.6 million hectolitres. Even so, the group says it is satisfied with its product mix in Brazil and remains optimistic about market growth.

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