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Heineken International. Kody Harper Channing Renner Trevor Willis. Heineken Commercial . History. Established in 1864 Gerard Adriaan Heineken Amsterdam In the late 1800’s, became Europe’s top beer producer Publically traded in 1939 HINKF
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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
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 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
Industry Analysis • Global beer market • Grew by 2% in 2008 • Slow growth • Standard lager maintains high market share
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