Heineken International

Kody Harper

Channing Renner

Trevor Willis

Heineken Commercial

History
Established in 1864
Gerard Adriaan Heineken
Amsterdam

In the late 1800s, became Europes

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 Heinekens 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
EuropeansDrink 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

The Americas; 10%

Africa and Middle East; 11%

Asia Pacific; 2%
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
Anheuser- Bush Inbev
Key Products
Beer & Soft drinks

Competition
SABMiller
Second largest brewery
SAB originated in late 1900s
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
$18.7

20

15

$11.8
10

$4.8

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; 28%

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