The world’s largest beer company Heislers beer brand is to be bought by a Chinese beer company.
The acquisition will see it buy out the entire Heislager brand, which has been made in the German city of Heidelberg since the 1970s.
Heisler’s purchase is a blow to the craft beer industry and the brewing sector, which is facing the threat of global competition from craft beer imports from other nations.
The purchase is the second major beer company to make its own beer.
The Chinese beer firm Kirin Beer Group will buy Heisles beer brand from the German company Heidelberger S.A. for $1.3bn.
The company is expected to take over the company in 2020.
Larger beer companies are increasingly taking on foreign brewers.
Selling the Heisels beer brand will help it diversify its portfolio into more domestic beer, Heislings senior vice president of beer, Tom Heisselmann, told the AP.
The Heisling brand, currently brewed in Heidelburg, Germany, was developed in the late 1990s by the family-run brewery.
“We’ve always been proud of the Heischler family’s heritage, and this acquisition will help us to grow the Heiselbrand brand into the world’s biggest beer brand, one that will benefit Heislinger’s global customers and the global craft beer community,” said Heislander chief executive Peter Schoenborn.
German beer imports account for nearly 30 per cent of global beer exports.
Schoenborn said the Heislager brand would continue to be produced in Heislenberg and that it was still “the most popular brand in Germany”.
“We have always been focused on the Heissler brand.
This acquisition will enable us to focus on new opportunities,” he added.
Heisheimer has a history of brewing beers for other brands, including Heisliers beer brand.
He has been a leading manufacturer of premium beers for more than 20 years.
Earlier this year, Heissheimer announced plans to move its manufacturing facilities to a new facility in the US.