Supply Chain & Ethical Issue: Heineken
Supply Chain & Ethical Issue: Findings and Recommendations Heineken Company
A. Introduction
Ethics is one of the most important factors to build reputation and trust of a business among suppliers and consumers. Heineken, a Dutch brewing company, is one of the world’s international most brewers. The company was founded by Gerard Andriaan Heineken in 1864 in Amsterdam (Heineken UK 2012). With operations in 71 countries, the Heineken family owns 125 breweries, employs around 70,000 people, brews and sells more than 250 brands in 178 countries around the world. Four generations of the Heineken family have been energetically contributed to the success and expansion of the Heineken brand throughout the world. During the development from 1864 until now, the company has encountered a few controversies. This report will analyze how Heineken beer is brewed up following a 148-year-old recipe, identify the company’s ethical issues along the supply chain and make recommendations based on research related to the issues.
B. Supply Chain
Heineken beer brewing is an entirely natural process with pure ingredients. There are only four used ingredients, which are water, malted barley, hops and yeast. The company buys barley from western farmers, usually from Europe. And the hops are bought from Germany or Ethiopia farmers. The water is bought from local water company. Yeast is supplied by biological company. These four ingredients are transported to the factories around the world to brew beer. According to Heineken International 2011, as beer contains 95 percent water, it is the most important raw material in Heineken beer. After purified by plants to remove minerals and salts, water is stored in giant tanks. Malting the barley is next. The barley is dipped in barley tank for 36 hours to start germination. After over a week, in order to remove the seed roots the barley is burnt in the mill. Now, the barley has been turned into malt. The malt
A. Introduction
Ethics is one of the most important factors to build reputation and trust of a business among suppliers and consumers. Heineken, a Dutch brewing company, is one of the world’s international most brewers. The company was founded by Gerard Andriaan Heineken in 1864 in Amsterdam (Heineken UK 2012). With operations in 71 countries, the Heineken family owns 125 breweries, employs around 70,000 people, brews and sells more than 250 brands in 178 countries around the world. Four generations of the Heineken family have been energetically contributed to the success and expansion of the Heineken brand throughout the world. During the development from 1864 until now, the company has encountered a few controversies. This report will analyze how Heineken beer is brewed up following a 148-year-old recipe, identify the company’s ethical issues along the supply chain and make recommendations based on research related to the issues.
B. Supply Chain
Heineken beer brewing is an entirely natural process with pure ingredients. There are only four used ingredients, which are water, malted barley, hops and yeast. The company buys barley from western farmers, usually from Europe. And the hops are bought from Germany or Ethiopia farmers. The water is bought from local water company. Yeast is supplied by biological company. These four ingredients are transported to the factories around the world to brew beer. According to Heineken International 2011, as beer contains 95 percent water, it is the most important raw material in Heineken beer. After purified by plants to remove minerals and salts, water is stored in giant tanks. Malting the barley is next. The barley is dipped in barley tank for 36 hours to start germination. After over a week, in order to remove the seed roots the barley is burnt in the mill. Now, the barley has been turned into malt. The malt