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