Heineken International
Kody Harper
Channing Renner
Trevor Willis
History
• Established in 1864
– Gerard Adriaan Heineken
– Amsterdam
• In the late 1800’s, became Europe’s top beer
producer
• Publically traded in 1939
– HINKF
• Revenue in 2008 of €14,701 million Euros
Current & Future Profile
• Current Profile
– Substantial revenues in 2009
– New online program for 12 students
• Future Profile
– Economic downturn
– Vague progress in certain countries
SWOT Analysis
• Strengths
– Large Work Network
• Over 70 countries and 125 breweries
– Alliance with UEFA
• Union of European Football Associations
– Over 140 million viewers worldwide per game
– Brand Awareness
– Strong and rounded brand portfolio
• Over 200 beers within Heineken’s portfolio
• Top brands: Heikenken and Amstel
SWOT Analysis
• Weaknesses
– Profit Margins
• Decreased profit margins
• Increased start up costs
– Increased debt
• 2007-08 $11 billion increased debt
• Debt acquiring acquisitions
SWOT Analysis
• Opportunities
– Failing and smaller breweries
• Start up costs
• Brewery and Maltery
– Global Beer industry
• Beer is good!!
• 1.7% increase in market from 2008 to projected 2013
SWOT Analysis
• Threats
– Europeans…Drink more beer!!!
• Slow growth rate, not coming close to estimates
• Leading market for Heineken
• Girly drinks
– Financial status
• Law violations hindering finances
Global Market Expansion
• 2nd – 4th in the world beer market
• Largest brewer in Europe
– 125 breweries worldwide
– 70 countries
• 5 geographical regions:
–
–
–
–
–
Central and Eastern Europe
Western Europe
Asia Pacific
The Americas
Africa and the Middle East
Heineken International
Website
Global Market Expansion
• Central and Eastern Europe
– Terrific market share in Austria, Bulgaria, Greece,
and Slovakia
– Sold 53,300 liters worldwide in 2008
• Western Europe
– Majority of profit
– Large market share throughout multiple countries
– New brewery in Spain
Heineken's Geographical Revenue, 2008
Asia Pacific
2%
The Americas
11%
Africa and Middle
East
11%
Central and
Eastern Europe
25%
Western Europe
51%
Global Market Expansion
• Asia Pacific
– Main breweries in Malaysia, Thailand, Vietnam,
China, Singapore, Mongolia
– 26.4 million gallons in Ho Chi Minh City in one
year
– Chinese Expansion
• 3rd brewery in China
Global Market Expansion
• The Americas
– Specialization in exports
• Light beer only in America
– Multiple breweries
• Latin America, Caribbean
– FEMSA Agreement
Global Market Expansion
• Africa and Middle East
– Fastest growing segment
• 35.3 percent from 2007-08
– Egypt brewery purchase
Competition
• Anheuser-Busch InBev
• SABMiller
• Carlsberg Group
• The Boston Beer Company
Competition
• Anheuser-Busch InBev
– Largest competitor to Heineken International
– Anheuser Co. dates back to 1366
– 1987 Inbev was formed
– In 2008, companies merged to form AnheuserBush Inbev
– Key Products
• Beer & Soft drinks
Competition
• SABMiller
– Second largest brewery
– SAB originated in late 1900’s
– In 2002 company merged with Miller
– Key products are Beer and Soft drinks
– Six of top 50 Beers
Competition
• Carlsberg Group
– Fourth Largest Brewing company
– Founded in 1868 in Malawi
– Weak presence in US
– Producing mineral water with Coca Cola
Competition
• The Boston Beer Company
– US based independently owned company
– Created in 1984 by Jim Koch
– Won more awards than any international brewing
company
– Many large companies have wanted to buy, but
will not sell
Company Revenues (In Millions), 2008
25
$23.6
$21.0
20
$18.7
15
$11.8
10
$4.8
5
0
Anheuser-Busch Inbev
Heineken International
The Boston Beer
Company
Carlsberg Group
SABMiller
Global Beer Market Share, 2008
Anheuser-Busch
InBev
26%
Other
55%
SABMiller
12%
Heineken
7%
Industry Analysis
• Global beer market
– Grew by 2% in 2008
– Slow growth
– Standard lager maintains high market share
Global Beer Market Segmentation, 2008
Specialty beer
10%
Ales, Stouts & Bitters
4%
Low/No Alcohol
2%
Premium Lager
29%
Standard Lager
55%
Industry Analysis
• Segmentation by geographical region
– Europe – 50%
– Americas – 29%
– Asia-Pacific – 21%
Recommendations
• Short-term
– New marketing strategy
• Sales increase, finances increase
• New forms of marketing
– Reduce acquisitions with debt
• Acquiring negative assets
• Stick to what they have
– Diversity
• Increased product line= larger market share
• More appealing brand
Recommendations
• Long-Term
– Increased shelf space
• The more customers see the more they will buy
– Portfolio increase: Financing smaller companies
• Boston Brewing Company
• Great brands with small finances
– Ethical and Law standards
• Public image
• Health awareness
Conclusion
• Top 5 beer company in the world
• Largest brewer in Europe
• Strong brand portfolio
• Substantial revenues in 2009