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HEINEKEN: A leading premium
brewer in Asia Pacific
Theo de Rond
President, Asia Pacific

Singapore | 8 December 2011

Agenda

HEINEKEN: A leading premium brewer in Asia Pacific

1 HEINEKEN growth strategy in Asia Pacific
2 Heineken®: A real success story

2

The Asia Pacific beer market
Demographics
 36 countries
 3.8 bn inhabitants
 Life expectancy
ranges from 40-80 years
 Population growth rate 1% p.a.
 Large differences in income

Beer Segmentation
 Beer markets at different stages of
development
 Markets characterised by strong local
mainstream brands and growing
premium beer presence
 Significant potential for premium beer
segment in the region

3

Market Size
 658 mhl consumed in 2010
 Consumption levels vary widely from
between 1-85 litres per capita

Competitive Structure
 Top 4 local players have 60% of
profit pool
 Presence of strong number 1 in most
countries
 China and Hong Kong remain relatively
fragmented markets

HEINEKEN strategy for winning in Asia Pacific
Built on six key strategic pillars

Focus on
Growth
Markets
Build on
footprint and
local knowhow

Create Value
for our
Stakeholders

Be a Leading
Brewer in
Asia Pacific
Win in
International
Premium
Segment

Leverage on
our Global
Scale
Consumer
Inspired;
Customeroriented

4

Focus on

1. Focus on growth markets (I)

Growth
Create
Value for
our
Stakeholde
rs

HEINEKEN expects to benefit from positive regional beer
market dynamics

Markets

Build on
footprint

Be a
Leading

and local
knowhow

Brewer in

Win in
Internation
al Premium
Segment

Asia

Leverage

Pacific

on our
Global

Consumer

Scale

Inspired;
Customeroriented

Per capita consumption growth:
2010-2020F CAGR %
8.7%

Incremental beer consumption by market:
2010-2020F (mhl)
224

8.5%

25.6 25.5

7.2%
6.3%

3.3% 3.2%

8.3

2.0%

6.8

4.4

1.7%

1.2%

1.7 1.7

0.4% 0.4%

Source: Plato (World Beer Report, Oct-11)

5

Malaysia

New Zealand

Singapore

Indonesia

Papua New Guinea

Australia

Taiwan

South Korea

Cambodia

Philippines

Thailand

India

Vietnam

-1,2%

Japan

-2,6

-0,7%

China

-0,4%-0,5%

1.0 0.9 0.4
0.2 0.2 0.1 0.1

Mongolia

3.5%

1. Focus on growth markets (II)
China: Focus on leadership in premium segment

Focus on
Growth
Create
Value for
our
Stakeholde
rs

Win in
Internation
al Premium
Segment

Markets

Be a
Leading

Build on
footprint
and local
knowhow

Brewer in
Asia

Leverage

Pacific

on our
Global

Consumer

Scale

Inspired;
Customeroriented



Top 10 provinces in China represent
around 80% of the country profit pool

Highest profitability in premium segment
Volume

EBIT/HL

MHL

Index vs
Mainstream

Premium

2.4

1010

Affordable Premium

4.2

430

2010 Segment

HEILONGJIANG

JILIN
XINJIANG

GANSU

HEBEI
NINGXIA

Q INGHAI

HENAN

JIANGSU

S HAANXI
S ICHUAN

HUBEI

ANHUI

JIANGXI

YUNNAN

HUNAN

GUANGXI

HAINAN

6

S HANGHAI

ZHEJIANG

CHONGQING

GUIZHOU

Source: National Bureau of Statistics, CICC Research,
Plato & Canadean
HEINEKEN estimates

430

Mainstream

100

Discount
tracking img