Heniken beer
Established in 1864
125 breweries in over 70 countries
In the late 1800s, became Europes top beer producer
One of the leading beer brands for 140+ years
Number 1 beer international brand in 2012
2nd largest brewer by revenue in 2012
Premier brands - Heineken, Amstel, Newcastle
Own and sell more than 250 brands(local and
international)
Licensing to expand exports
From the 1970's when it began to "go international"
Heineken expanded its interests by licensing
agreements "Firstly, by concluding licensing agreements
with various breweries in France, Ireland, Spain and
Italy and subsequently by taking participation in those
breweries.
FDI through Collaborative Relationships
In 2002 Heineken entered into an agreement with
Canadian brewer Molson who acquired Kaiser in Brazil.
Heineken entered into a partnership with Molson by
taking a 20% participation in the new brewery group
that Molson formed by merging Kaiser and Bavaria
Beverage Life Cycle
key factors make them unique:
Enjoyed in 178 countries around the world
Internationally diverse, dynamic, committed and
entrepreneurial team of over 85,000 employees
The passion of the Heineken family remains as
strong today as it was in 1864 when they first
started brewing beer.
Who is drinking
Who is drinking
Age
Occupation
Income
Global drinking trends
Swot analaysis
Strengths
Large Work Network
Union of European
Football Associations
Over 140 million viewers
worldwide per game
Profit Margins
Decreased
profit margins
Increased start up costs
Over 70 countries and
125 breweries
Alliance with UEFA
Weaknesses
Increased debt
2007-08
$11 billion
increased debt
Debt acquiring acquisitions
Swot analaysis
Opportunities
Failing and smaller
breweries
Threats
Start up costs
Brewery and Maltery
Slow growth rate, not
coming close to estimates
Leading market for
Heineken
Girly drinks
Global Beer industry
Beer is good!!
1.7% increase in market
from 2008 to projected
2013
EuropeansDrink more
beer!!!
Financial status
Law violations hindering
finances
Performance highlights
Revenue (in millions of
EUR)
Consolidated beer volume
(in millions of hectolitres)
18,383m
171.7mhl
+7.4 per cent
+4.3 per cent
Revenue (in millions of EUR)
Consolidated beer volume
(millions of hectolitres)
Henkel presents growth strategy for 2016
Strong potential for accelerated growth
and increased profitability in all three
business sectors
Strengthen competitiveness: Focus on brands, innovations, customers
Expand in emerging markets, leverage strong positions in mature
markets
Increase investments:
Ongoing adaptation and simplification of processes and structures
Strengthen global team: Leadership, Talents & Performance,
Diversity
Heineken Grand Strategy
Factor
Explanation
Product Development
Developing new innovations in the beer industry will make Heineken
stand out from the US domestic brewers.
Market Development
Expand marketing to emerging market such as Asia, Middle East,
Russia, and Africa. This will allow them to penetrate these markets first.
Market Penetration
Focus on the marketing of Stars and Question Mark brands in developing
regions
Backwards Integration
Invest in more distribution channels to lower the shipping costs
Frontwards Integration
This will allow: getting closer to the customer, increase the involvement in
the value chain, and increase the product offerings
Concentric
Diversification
Take on a technology to help enter markets not penetrated yet. It would
be useful to start with core brands first, such as Heineken, Amstel,
Strongbow
Competition
Top Breweries Worldwide by Volume
S. no
Brands name
AB in bevarage
SAB Miller
HEINEKEN
Carlsburg
Tsingtao
Molson Coors
Grupo Modelo
Beijing Yanjing
Kirin
Competition by Region (%)
Financial Review
In million
2012
2011
Revenue
18383
17123
Other income
1510
64
Raw materiall, consumable and services
(11849)
(10966)
Personal expenses
(3037)
(2838)
Amortisation, depreciation and impairments
(1316)
(1168)
Total expenses
(16202)
(14972)
Result from operating activities
3691
2215
Sare of profit
213
240
EBIT
3904
2455
Currency split of Net Debt
PEST ANALYSIS
Government has a negative view on
alcohol due to the negative social and
health consequences
All governments have higher taxes on
emerging beer markets while exporting
alcohol
Currency fluctuation
Raised costs of grain, glass, aluminum
Higher advertising costs
Raised unemployment around the globe
Beer isnt just for men anymore. More and more
women are enjoying beer for the taste
The new lifestyle of the newest generation is face
paced. This leads to less time to drink beer; at home
or at a bar.
The growing population in China leads to more
leisure time for people to drink.
The more health conscious America becomes leads
to less drinking.
Every business uses some type of technology.
With Heineken increasing their technology, it
becomes easier for them to communicate with all
aspects of their worldwide operation.
Makes penetrating new markets easier
Blue Ocean Strategy
Penetrating Russia
Biggest untapped beer market
Growing economy (7-8% annually)
Growing market for alcohol
Premium beer is 50% of beer market
conclusion
Top 5 beer company in the world
Largest brewer in Europe
Strong brand portfolio
Biblogarphy
Book
F& B management byLilicrrap
Internet
