Marketing Paper Heineken

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The company

Heineken is a Dutch beer brewery company, which was founded in 1863, when Gerard Adriaan Heineken bought a small brewery in Amsterdam called “The Haystack”. In 1900 the company came up with it nowadays famous five-point star. In 1914 the company began expanding, starting with the production of their own bottled beers. By 1914 the company was one of the most loved import beers in the United States. From around 1948 Heineken began promoting their beer on a large scale. With slogans as “Heerlijk helder Heineken” (meaning: Delicious clear Heineken) and “Good people bring home Heineken”. In 1968 Heineken comes up with an innovation that will be used for over 30 years, the barrel with an attached draft pipe. This way an innkeeper only has to connect the barrel from the outside. In the same year Heineken also takes over their rival company Amstel. However, Amstel will keep its own identity and they will both follow different strategies. In the early 1980’s Heineken is available in 145 countries around the world. After the fall of the Wall in 1989, Heineken will even expand further into Eastern Europe. For instance, Heineken acquires Brau Beteiligungs A.G. (BRAG), in 2003. Until now, that is still the largest acquisition in Heineken’s history. In 2005 Heineken comes up with an innovative system that would take over the markets once more: The portable Heineken Draught keg.

In 2010 Heineken is active in 170 countries and still trying to expand. They have 120 breweries globally, and employ 54.000 people. In the 120 breweries Heineken owns, Heineken brews more than 200 different kinds of beers and ciders, Heineken Premium beer being the most famous one.

In Heineken’s Annual Report of 2009 Heineken has stated that 18 percent net growth in net profit. They reported revenue of €14.701 million; their net profit was €1.055 million. Their revenue of €14.701 million came from a consolidated beer volume of around 125 million hectoliters.[1]

Heineken N.V. and Heineken Holding N.V. Stock exchange and management scheme

Heineken N.V. and Heineken Holding N.V. are both represented on the Stock exchange list. Heineken Holding holds 50.005 % interest in Heineken N.V. FEMSA holds a 9.245% interest in Heineken N.V. The free float interest in Heineken N.V. is 40.75%.

L’arche Green N.V., is owned by the Heineken family for 88.75% and by Greenfee B.V., which owns the remaining 11.25%. L’arche Green N.V. holds a 50.075% interest in Heineken Holding N.V. FEMSA holds a 14.94% interest in Heineken Holding N.V. Free float interest in Heineken Holding N.V. represents 34.94%.[2]

We have put a stock exchange and management scheme in Appendix A.

Products, Geographical Markets and Market Positions

As Heineken brews around 200 different kinds of beers and ciders, we will first state a couple of recognizable brand names. However after that, we will focus on the Heineken Premium Pilsner, or Heineken Premium segment. We will differentiate on the premium segment because otherwise our paper will become to elaborate.

Products

Heineken most famous brand is Heineken Premium Beer. Below I will mention other brand names that Heineken brews in their breweries. I chose to name the products they brew in Western Europe; this is due to the fact that Heineken is Europe’s largest and leading beer brewer.

In Europe the most brewed beers and ciders that Heineken brews are: - Heineken
- Amstel
- Desperados
- Gösser
- Strongbow
- Edelweiss
For a total overview of all the beers that Heineken brews in the worlds, you can visit http://www.heinekeninternational.com/products_brands_brands.aspx For the relevance of this paper, it is not necessary to name all these brands.

Geographical Markets

Below you will find a table with the geographical distribution of consolidated beer volume, this is off al of the beers and ciders Heineken brews in the world. |In thousands of hectolitres[3] |2010...
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