The Economist  Apr 19  Comment 
THE Bralima brewery in Kinshasa, the capital of the Democratic Republic of Congo (DRC), is an island of modernity in a city where chaos is the norm. Inside a building near the docks where barges begin the journey up the Congo river, conveyor belts...
SeekingAlpha  Apr 18  Comment 
NPR  Mar 29  Comment 
Chance The Rapper took on Heineken for what he saw as a racist ad. Heineken took it down but didn't suffer any consequences. In fact, its stock is up.
New York Times  Mar 28  Comment 
In the commercial, a bartender slides a light beer past three black people and into the hands of a fairer-skinned woman.
Clusterstock  Mar 26  Comment 
Heineken released an ad for its light beer with the tagline "Sometimes lighter is better." Chance the Rapper tweeted that the ad is "terribly racist." "We missed the mark, are taking the feedback to heart and will use this to influence future...
Forbes  Mar 20  Comment 
Heineken has become one of the biggest names in American soccer, and now the global beer brand has extended its MLS league partnership for another five years.
NPR  Mar 15  Comment 
The Global Fund is partnering with Heineken for logistical help in the fight against AIDS, malaria and TB. Is that a smart plan — or, as some health advocates charge, an unsuitable match?


Heineken N.V. (HINKY) is a beer brewer that owns and manages a portfolio of beer brands, and also has Heineken as its principal brand. Heineken was founded by Gerard Adriaan Heineken in 1867 and successfully promoted to the top beer selling company in the international market through time. Heineken has wide international presence through a global network of distributors and over 125 breweries in more than 70 countries. In addition, the Company has more than 200 international, regional, local and specialty beers and ciders, including Amstel, Primus®, Birra Moretti®, Sagres® , Cruzcampo®, Foster’s®, Strongbow®, Bulmer®, Newcastle Brown Ale®, Zywiec®, Ochota®, Kingfisher®, Tiger®, Star®, Dos Equis®, Tecate® and Sol®. [1] Heineken comprises six geographical segments: Western Europe, Central and Eastern Europe, The Americas, Africa and the Middle East, Asia-Pacific and Head Office/eliminations. On January 11, 2010 Heineken announced the acquisition of the beer operations of Fomento Economico Mexicano, S.A.B. de C.V (FEMSA). In May 2010, the Company brought Brewery Affligem under the wing of Alken Maes through a merger by acquisition. In June 2010, the Company sold its British beverage distributor WaverleyTBS to Manfield Partners.

Business Overview

Ever since Heineken became involved in international business, it has emphasized on innovating products and expanding the brand. Heineken started its own bottling business decades ago in 1929, and have progressed to present day re-designing the packaging of the products in order to achieve better sales and sustainability. Heineken announced the global roll-out of the new iconic Heineken bottle, completing the redesign of its global brand packaging range on December 1, 2010 in Amsterdam. [2] The restyling aimed at shaping the visual identity and making the brand even more recognizable in all 170 markets worldwide where Heineken® is purchased. The new bottle will come in five different volume sizes and will be available in Western Europe at the beginning of 2011 and across the rest of the world by 2012. Heineken’s commitment to innovation is evident in the new can design which is the first of its kind to feature tactile ink and be introduced across the world. This revolutionary ink, created by a series of small raised dots on the surface of the can, gives the consumer a better feeling in the hand, enhanced grip and allows the brand to appear more refreshing and recognizable.


Additionally, Heineken continues its expansion through several activities with the ultimate goal being that Heineken becomes the most demanded brand in the world. On February 16th, 2011 Heineken launched its fifth consecutive UEFA Champions League Trophy Tour presented by Heineken, giving football fans in Asia the opportunity to experience the unique UEFA Champions League Trophy first hand. The Trophy Tour was launched with an official handover of the cup at UEFA headquarters by UEFA Champions League Trophy Tour Ambassador Graeme Le Saux and double UEFA Champions League winner and Heineken Brand Ambassador Marcel Desailly.

Marketing excellence and innovation are key components of Heineken’s growth strategy. In everything Heineken does, the company makes the consumers and their needs a top priority. Heineken also plays an important role in society and in the communities where the company operates. Social responsibility and sustainability are an essential part of the company’s operating activities. Therefore,Heineken continues to increase initiatives to combat alcohol abuse working hard to reach the highest environmental standards in the industry.

SWOT Analysis


One of the strengths of Heineken’s success is its business strategy of global market expansion. Heineken N.V. began its business in Amsterdam, the Netherlands, and started to export products to markets in America and other countries during 1920s. By expanding the market, Heineken N.V. not only established a more well-known and reliable global brand to consumers, but also opened the door for international acquisitions. Besides Heineken, Heineken N.V. owns more than 200 beer brands over the world, which given the company a strong differentiation advantage. Lastly, the designs of logo and bottle are other strengths that make Heineken a successful global brand. The green bottle design and the mini keg products strongly catch consumers’ attention; and most of the people may not notice that the “e” in Heineken’s logo looks like a smile.


Even though Heineken has become a well-known global brand, its business is still affected by some weaknesses. Heineken N.V. was struggled to obtain larger breweries in certain countries due to their conservative culture, some countries strongly convince their people that alcohol could really cause damage to human’s life. On the other hand, the size of Heineken N.V.’s brewers had already grown so large that it could hardly find any brewer larger than the one it is using. Heineken N.V. has been facing a “drinking age” issue. Most of the people who consume Heineken are older; the average consumption age is 30. Heineken N.V. has been trying to create an image which can be accepted by teenagers and local markets in different countries. The last weakness that Heineken owns compared to other competitors is the price. Normally, a domestic beer only costs $7 per six pack, but Heineken costs $10 per six pack.


However, the factors from external environment can provide many opportunities for Heineken N.V. Nowadays, people care more about their health, even to the people who love to have beers while hanging out with friends or having business dinners with partners. Heineken N.V. invented light beer with low calories to attract certain target consumers. Since the markets in Russia and Asia are growing rapidly, Heineken N.V. ought to focus on these markets; and the company should make products which fit local market preferences and also retain the high quality at the same time. Heineken N.V. could have greater market shares in Russia and Asia. In addition, Heineken could focus on Hispanic market, since Hispanic consumers are growing rapidly.


Additionally, external factors can also affect the market sales of Heineken, Drunk-driving increases the rate of car accidents, and more laws were established to reduce the incident. This can affect the sales on alcohol products. Recently many competitors aggressively increased their market shares and acquisitions with other breweries; some of the brewers are even larger than the Heineken’s. Among all, Anheuser-Busch InBev, the world’s largest brewer, is Heineken’s major threat. Since more new brands and large brewers emerge, Heineken now faces a serious issue of “getting old,” the brand can be “in danger of becoming a tired, reliable, but unexciting brand” (John A. Quelch). [3]

Business and Financial Metrics

Heineken Holding N.V. shares are traded on Euronext Amsterdam. In 2009, the average daily trading volume of Heineken Holding N.V. shares was 350,836 shares. [4]

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Data from third quarter of 2010 shows that EBIT grew significantly due to a strong performance in Africa and Asia with the business emphasizing on cost savings. Furthermore, the company saw an increase of the volume of the brand in the international market by 2.2% reaching 6.9 million hectoliters. Consequently, Heineken’s revenue grew 13% with growth in net profit reaching 10%. [5]

Looking back on 2010, the company reported revenue of EUR 16,133 million, EBIT of EUR 2,476 million, net profit of EUR 1,436 million. Free operating cash flow was EUR 1,993 million. The company reported strong growth in 2010 profits. The company's dividend policy targets a dividend payout ratio of 30%- 35% of full-year net profit (beia). [6]

Key Figures, in hls/ € millions[7] FY2010 FY2009 % Change % Organic Growth
Group beervolume192.3 159.1 21 -1.7
Consolidated beer volume145.9 125.2 17 -3.1
Heineken® premium volume26.0 25.1 3.4 3.4
Revenue16,133 14,701 41
EBIT2,476 1,757 9.7 -2.2
EBIT (beia)2,608 2,095 25 8.6
Net Profit1,436 1,018 41
Net Profit (Beia)1,445 1,055 37 19.7
Free Operating Cash Flow1,993 1,741 14
Net debt/EBITDA (beia)2.2x 2.6x
Diluted EPS (beia) (in €)2.56 2.15 19

The company saw a huge leap of profit during 2010 despite drop of sales in Western Europe and raising inflation especially in raw material prices. Emerging markets are what drives profits in the company right now.

Heineken Holding N.V. shares are traded on Euronext Amsterdam. In 2009, the average daily trading volume of Heineken Holding N.V. shares was 350,836 shares. [8]


Heineken’s management believes that increasing its brand investments should be a key in improving its market and value share. Therefore, one of their plans is to pursue a TCM cost reduction program and also concentrate on increasing profitability of their newly acquired companies. Due to the decline in the price of brewing barley, they believe that the raw material cost is likely to fall as well but that would not have any effect on the higher energy cost or the increased marketing and advertising costs. The target for the future is to decrease the company’s Debt/EBITDA ratio to less than 2.5 times. [9]

Industry Trends

The industry of alcoholic drinks, and beer specifically differs across many different markets. While the overall, worldwide, beer consumption is expected to grow by 2-3% on a yearly basis, this is not the reality for the entire world. In well established, developed parts of the world (Japan, Western Europe, the United States, and Australia) the total growth will be almost zero. The only area that is expected to grow much is the premium, import, and speciality beer segment. This area is expected to grow about 4% annually and will take away from sales and consumption of domestic beers. Furthermore, within this specialty segment, the international premium beer consumption is expected to grow by 6% each year. [10]

Within the developing countries however, the beer consumption as a whole is foreseen to grow by a rate of 3-4%. These developing countries are ones such as: Asia (other than Japan), Africa, Central and Eastern Europe, and Latin America. This growth is dependent on several factors. These growing markets are exactly that, growing; the populations in these areas has seen an explosion in recent memory. Also, along with having more people, the consumers have more money on average than anytime before. Last, customers in these growing markets are consuming differently; they have switched from drinking more hard liquors to more beer. The largest growth is in the mainstream beers which have generally lower prices than the specialty and import beers. Despite these projections there are still some statistics that show this is not happening quite like foreseen.

Changing societal concerns, attitudes, and lifestyles are driving forces for the industry. For example, consumers are becoming increasingly more concerned with living healthier lifestyles. Also, we are an aging society which means that there has been a decline in the growth of the 18-34 age group and these are the biggest beer consumers. In other words, the market is shrinking.

Although the growing popularity of wine has pushed beer drinking statistics down in recent years, some emerging trends show a positive future for the industry.

First, breweries that produce fewer than 15,000 barrels of beer per year are part of a growing craft industry that includes homemade and specialty beers. This is actually a return to the earlier days of brewing, when English pubs brewed their own beer. The reason this is a positive for the industry is that smaller batches tend to result in tastier, more interesting beers, with more attention paid to detail and to the quality of the ingredients.

Another growing trend is cooking with beer. Beer is now an ingredient in sauces and batters. Also it has long been known that a good beer is the ideal accompaniment to beef dishes, seafood, and fish entrees.

Moreover, light beer is increasingly becoming more popular. The smooth, mild taste as well as the lower number of calories have made light beer today more popular than premium beer.

Last, import beers have gained popularity. One reason is due to the ever increasing immigration. Also, people want the best and if it comes in the form of a foreign beer, they will take it.



The beer industry is one of the most competitive industries in the world. Most of the companies that were once competing in manufacturing beer have gone out of business so the ones that have survived are doing so by staying innovative, controlling their cost, investing money in marketing, and developing new strategies. One of the goals that Heineken had set was to become one of the best competitors in the industry. Their vision succeeded and they are currently situated as a top competitive global business. They not only have a rating of an international brewer but have also become the world’s second largest brewer by revenue with a strengthened volume position. [12]

The demand in this market is dependent on the demographic trends and customer’s alcohol preferences. This is the reason why it’s crucial to maintain low operating costs and concentrate on sales. According to Hoovers: “The industry is capital-intensive: average annual revenue per employee is about $500,000 for beer wholesalers and $700,000 for wine and distilled spirits wholesalers.” [13]

Heinken’s main competitors are Anheuser-Busch Companies (BUD) and SABMILLER PLC (SBMRY). Heineken is the worlds’ second largest brewer by sales after Anheuser-Busch Companies of Belgium. It can be seen from the 2009 data that the biggest revenue belongs to Busch (BUD) of 36.12 billion, on the second place is Heineken with 20.34 billion and SaBMiller (SBMRY) has 14.57 billion. The following table shows how Heineken is positioned financially compared to its top competitors.

Finance Data [14] HINKY BUD SBMRY
Market Cap27.17B 27.46B 53.47B
Employees75,000 116,000 70,000
Qtrly Rev Growth (yoy)5.20% -4.50% 5.40%
Revenue (ttm)20.34B 36.12B 14.57B
Gross Margin (ttm)35.98% 54.98% 67.63%
EBITDA (ttm)3.84B 13.48B 4.42B
Operating Margin (ttm)12.65% 28.12% 22.63%
Net Income (ttm)1.65B 4.34B 2.06B
EPS (ttm)1.62 2.72 1.30
P/E (ttm)15.922 20.22 26.04
PEG (5 yr expected)1.22 1.03 1.08
P/S (ttm)1.34 2.42 3.69

Furthermore, in February 2010, Heineken bought Cerveza unit of Fomento Economico Mexicano or Femsa, who is one of the main competitors in Mexico and Brazil. This deal helped Heineken become a number two competitor and a big threat for BUD by expanding in the Mexico’s and Brazils market. [15] This deal brought the company to a 41% increase in net profit and an overall sales volume of 21%. These results show how targeting emerging consumers is the best way to find growth. [16]

Porter's Five Forces Analysis

Threat of Substitutes: Heineken is a premium beer which makes it more expensive. Therefore, there is a significant threat of substitutes. The top substitute for beer is other malt beverages which have been growing in popularity. The main group is what is known as "malternatives". These are malt beverages that have been flavored to taste similar to wine, fruit, and other drinks. Example of such beverages are Smirnoff Ice, Mike's Hard Lemonade, Bacardi Lemonade. Other substitutes include pre-mixed drinks and wine coolers.

Also, beer is an inferior good and with the growing appreciation of wine, once consumers and the economy are doing well financially, beer is easily substituted with wine.

Threats of New Entry Entry into the beer industry is dependent on the segment. For example on a national or international level, it is difficult due to the many barriers to entry. These include large capital requirements and distribution networks. Establishing a new strong and sound distribution network is not easily attainable. Therefore, the threat of new entrants is significantly small.

Bargaining Power of Buyers Buyers have a high bargaining power due to the ease of switching brands. Beer consumers are also easily swayed by advertising which reduces brand loyalty.

Bargaining Power of Suppliers The power if supplier lies with the larger company. Suppliers have power due to the demand of agricultural products. Furthermore, canneries have power in their ability to produce packaging. If a brewery is large enough, it has leverage when it comes to where and for how much they get their supplies.

Competition The beer industry is highly competitive. The rivalry among existing competitors is also strong. Given the low switching costs of consumers, competition to gain new market share is intense. It can be described as "survival of the fittest".

Geographical Segments and Product Portfolio

Heineken owns and manages one of the world's largest portfolios of beer brands with over 200 beer and cider brands. The company has two principal international brands: Heineken, positioned as a premium brand, and Amstel - mid-priced mainstream segment.

Western Europe

Heineken is Western Europe’s largest and leading beer brewer. The company has gained market leadership positions in the UK, the Netherlands and Spain and is a top brand in Belgium, Finland, France, Ireland, Italy, Portugal and Switzerland.

In Netherlands, Heineken sells Heineken, Amstel, Lingen’s Blond, Murphy’s Irish Red and Wieckse Witte. Its brands in Portugal include Sagres, Imperial, Cergal and Foster’s. In Spain, it include Heineken, Amstel, Buckler, Cruzcampo, Guinness, Kaliber, Legado de Yuste and Murphy’s Irish Red. Its brands in United Kingdom include Foster’s, Newcastle Brown Ale, John Smith, Bulmer, Strongbow, Woodpecker, Scrumpy Jack, Jacques, Sirrus, McEwan’s, Tartan Special, Deuchar’s IPA, Kronenbourg, Heineken, Amstel and Sagres

Central and Eastern Europe

Heineken is the largest brewing group in Central Europe and a leader in marketer in Greece, Austria, Slovakia, Bulgaria and FYR Macedonia. Also, Heineken has strong market positions in Russia, Germany, Hungary, Serbia and the Czech Republic.

The Company’s brands in Belarus include Syabar, Bobrov, Rechitsa, Dneprovska and BergG. The brands in Croatia include Heineken, Karlovacko, Gosser, Edelweiss, Kaiser and Golden Brau. The brands in Czech Republic include Heineken, Amstel, Hostan, Starobrno, Zlaty Bazant, Cerveny Drak, Baron Trenck, Krusovice, Zlatopramen, Breznak, Dacicky and Louny

Africa and the Middle East

Heineken has owned breweries and has enjoyed substantial market positions in several African countries for more than 50 years. The company brews a variety of local brands there as well as the Heineken and Amstel brands.

In this region, the Company operates through companies, including Brarudi (59.3%), Brasseries du Cameroun (8.8%), Brasseries du Congo (50%), Bralima (95%), Al Ahram Beverages Company (99.9%), Guinness Ghana Breweries Ltd. (20%), Tempo Beverages Limited (40%), General Investment (10.8%), Almaza (67%), Tango (100%), Namibia Breweries (14.6%), Nigerian Breweries (54.1%), Consolidated Breweries (50.1%), Bralirwa (70%), Sierra Leone Brewery (83.1%), Nouvelle de Brasserie ‘Sonobra’ (49.99%), Sedibeng Brewery (75%) and Brasseries du Maroc (2.2%).

The Americas

Heineken has built a strong position in the Americas, with exports to the USA, Central America and the Caribbean. In 2010, Heineken completed the acquisition of the beer businesses of Fomento Económico Mexicano, S.A.B. de C.V. (FEMSA). Heineken executes the integration strategy it has developed in collaboration with the local management teams.

In this region, the Company operates through companies, including Companias Cervecerias Unidas Argentina (30.7%), Commonwealth Brewery (53.2%), Companias Cervecerias Unidas (33.1%), Cervecerna Costa Rica (25%), Cerveceria Nacional Dominicana (9.3%), Brasserie Nationale d’Haiti (23.3%), Desnoes & Geddes (15.5%), Brasserie Lorraine (83.1%), Consorcio Cervecero Centroamericano (12.4%), Cervecerias Baru-Panama (74.9%), Windward & leeward Brewery (72.7%), Surinaamse Brouwerij (76.1%) and Carib Development Corporation (20%).

Asia Pacific

Defining the company’s position in the Asia-Pacific region is the Singapore-based joint venture with Fraser & Neave, Asia Pacific Breweries (APB). It operates breweries in Singapore, Laos, Malaysia, Mongolia, Thailand, Vietnam, Cambodia, China, New Zealand, Papua New Guinea and Sri Lanka, and as from February 2010 also in Indonesia and New Caledonia.

In this region, the Company operates through companies, including Cambodia Brewery (33.5%), Shanghai Asia Pacific Brewery (44.6%), Hainan Asia Pacific (46%), Asia Pacific Breweries (Aurangabad) (31.9%), Multi Bintang Indonesia (84.5%), Guinness Anchor Berhad (10.7%), Grande Brasserie de Nouvelle Caledonie (87.3%) and MCS Asia Pacific Brewery (23.1%).


Geographic distribution of consolidated beer volume

In thousands of hectolitres[18] 2009 2008 % Change
Western Europe47,15144,2456.6
Central and Eastern Europe46,16550,527(8.6)
Africa and the Middle East19,820 18,0769.7
The Americas9,43010,329 (8.7)
Asia Pacific2,6812,6441.4


Heineken is a global brand and it is consumed all around the world. In each country it has a different image and different identity perception. For example, in the Netherlands it is viewed as a market leader; in the USA and Hong Kong it is used for special occasions rather than daily consumption, while in Latin America it is viewed as an imported European beer. Advertising plays an extremely important role in promoting a brand image. Heineken’s plan in this sphere is to concentrate on advertising that focusing on the good taste of the product and promote its image as “Anytime beer”. Its goal is to differentiate in the beer industry by focusing on all the five core values: Taste, Premiumness, Tradition, Winning Spirit, and Friendship. Heineken is considering a consistent and coordinated messages into their commercials. [19]

Furthermore, the company has engaged in online advertising. The advertisements are available on the company's website as well as social media sites such as YouTube and Facebook. The CEO of the company, Francois Van Boxmeer, explained some of the reasons for it in an interview. The world is becoming extremely global and Heineken is positioned as a global beer brand. Using social media is a great way to receive feedback and to attract new young consumer. [20]

Another important event that will increase visibility of the company is its association and partnership with the Summer 2012 Olympics in the UK.

Business Strategies and Leadership

Heineken markets itself in such a way that it aims to be the leading brewer in all their target markets. Marketing is so vital to Heineken because it is an international brewer; Heineken can be found in many countries. The company was listed to have 125 breweries in more than 70 countries as of 2009.This provides the company with the difficult task of effectively spreading their message to each individual market. Heineken’s goals include not only being a leader in the broad market sense, but they also strive to lead each of their market segments.

Product: While Heineken is a very well known brand, they brew many other brands that make them able to be globally marketable. Some of their more well known brands are: Foster’s, Strongbow, Newcastle Brown Ale, and Dos Equis. Each of the different brews that is under the Heineken name is recognizable to people in different areas around the globe. By distributing different beers throughout the world, Heineken is able to reach customers of very differing tastes.

The Heineken Larger bottle has the same regular taste of Heineken, the only difference is the bigger size- it is twice as long as regular beer.

Heineken light has only 99 calories and it is brewed using horizontal fermentation. In one study, people compared the old Heineken with Heineken light and Miller lite. Both of the Heineken brands had a color and a taste(hops taste) compared to the watery taste of Miller lite. The new Heineken Light has a lighter taste than the regular Heineken and it is marked as drinking “real beer” in comparison with Miller Lite.

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Heineken’s draughtkeg is 5 liter that can fill up to 20 cups and it is the first true draft minikeg. Each keg has internal CO2 compressor which pushes the beer up the line and helps avoid direct contact with the air. This also helps the beer stay fresh up to 30 days once open.

During February 2011, Heineken released a new limited edition aluminum STR bottles. It a 330ml Heineken bottle with very attractive and exciting design that would attract any collector. STR references back to the 5 pointed star which is Heineken symbol brand for many years. It also glows under a UV or black light.

Price: Heineken has positioned most of its beers in the middle priced segment. They want their beverages to be common place among the average consumer. However, they do view their beer as slightly above average or premium; this is reflected in their prices. They have a quality product and price it as such.

Place: Heineken can be found in most stores around the United States. Also, so can many of their other beer brands. Then they have specialty beers that may only be found in certain geographic areas. Furthermore, the company has presence in 70 countries around the globe on almost every continent.

Promotion: Heineken does a lot to promote its many beer brands. Currently, it is doing the “UEFA Champions League Trophy Tour presented by Heineken.” This event started on February 16th, and gives football fans a chance to go out and see the trophy. This is the fifth straight year that they have hosted the event. The trophy leaves from Switzerland and is traveling all around Asia until it reaches Hong Kong April 15-17. This is just one small way in which Heineken gets their brand name out there among just one of their markets.

It is important to note that the company is not interested in promoting alcohol but rather an enjoyable refreshing beverage.

As part of their promotion strategy, in 2009, Heinekens new target became young adults with an active lifestyle by releasing a free application for the iPhone and iPod Touch. According to Herbert Gris, corporate marketing manager for Heineken: “Our objective was to create news around the brand by offering consumers never-before-seen tools for them to experience the Heineken world. The app engages consumers by helping them to have fun drinking Heineken with their friends in or out of home in a socially responsible way”.


This application has two options. The first one is called “The Bar Finder” which shows the closest bar in Brazil that sells Heineken. It also connects to your iPhones GPS and Google Map and gives an exact direction of how to get to that place. The users of this application are able to find the bar by type: restaurant, pub, snack bar, etc and also it gives a list of taxi services phone numbers and you are able to make a phone call straight from the application. The second option that this application has is called “Party Maker” which helps consumers host a party. It is made to help its consumers easily calculate how much Heineken would be necessary for the party after choosing a list of option like how many people(men and women) are attending the party; how long is it going to last, what kind of venue and other details.[21]

Furthermore, Foursquare came up with a new innovative way on how to work with companies who don’t have their own locations so they can offer specials. They partnered with Heineken Netherlands and came up with an idea of rewarding customers who visit locations where the beer is sold. People who use foursquare are now able to earn points each time they check in a bar where Heineken is sold. Users were encouraged to invite their friends to sign up and those who used a Heineken e-card were also rewarded. In the end, customers are able to redeem their points for selected merchandise. This gesture does not only help Heineken attract new consumers but also reward their loyal customers. [22]

Governance and Ownership

The Heineken Group endorses the principles of the Dutch Corporate Governance Code. However, since the company is divided into Holding N.V. and Heineken N.V., the application of the code is different for each.

Within Heineken there are many different boards each having different tasks. The main purpose of the executive board is to create and implement the corporate strategy. In addition to enacting strategy, the executive board manages all related companies with Heineken. The executive board has two members who are appointed by the General Meeting of Shareholders. The current two members of the executive board are the CEO Jean-François van Boxmeer and CFO René Hooft Graafland. [23]

Heineken N.V.

Heineken N.V. Heineken Holding N.V. holds a 50.005% interest in Heineken N.V. FEMSA holds a 9.245% interest in Heineken N.V. Free float interest in Heineken N.V. represents 40.75%.

Heineken Holding N.V.

L’Arche Green N.V., which is owned by the Heineken family for 88.55% and by Greenfee B.V. for 11.45%, holds a 50.57% interest in Heineken Holding N.V. FEMSA holds a 14.94% interest in Heineken Holding N.V. Free float in Heineken Holding N.V. represents 34.49%.

Values and Principles

Heineken puts a great amount of emphasis on their standards and values.The company is committed to success and optimization of financial value with minimization of impact on their business environment. This leader in the business industry is focused on setting and imposing trends on social accountability, anti-corruption, child labor, etc.

In order to reach its goals, the company's governance reflects their main values of respect, enjoyment, and passion for quality. [24] Heineken has respect for its customers, the environment, and society while providing high quality beverages that can be enjoyed by all.

Heinekens goal is not only to be the leader in the brewing industry but to be the greenest international brewer in the world as well.

Green Brewer

Energy- Heineken tries to use energy in the most efficient way so they can reduce the CO2 emission. They have also developed a CO2 neutral brewery that will lower the amount of electricity needed to produce its products

Water- Heineken aims to use water in the most efficient way by returning the used water to the eco-system in a quality sustainable for its next use. The company has developed a water-neutrality principle in water stressed areas. Heineken signed the United Nations CEO Water Mandate in 2009, that encouraged companies to become more involved in water availability and quality issues. [25]

Green Commerce

Carbon Footprint- Heineken has developed its own carbon footprint model in order to measure their impact on the environment. They consider this data when bringing future decision on making processes of innovation, packaging etc.

Supplier Code- Heinekens supplier code is “Brewing a Better Future” and they want to bring everyone together in order to make a positive contribution to the society. [26]

Engaging Employees

Secure Environment- Heineken has engaged in providing a safe and secure environment for all of its employees. They also care about the community and follow all the necessary regulations in order to protect any health or safety issues from the people around.

Integrity- Heineken has separate ethical regulation regarding corruption, fraud, conflicts of interests, so they have revised their Code of Business Conduct in order to express the expectation that it has from its employees

Employee Engagement and Education- Heineken has engaged all of its employees at all levels into a program where they will be taught the ambition for the business and where they will be able to feel a connection with it. They have their own internal learning center called “the Heineken University” where employees can become more familiar and support the “Brewing a Better Future” ambition. [27]

Heineken Cares

Local Sourcing- Heineken does its sourcing of raw materials locally as much as they can. Also, they do a big effort to secure a sustainable supply of raw materials.

Sustainable Agriculture- Since beer cannot be brewed without crops, their corpses quality is of a big importance. So their strategy for the long term is to pay their farmers a fair price for their raw material in order to keep the quality of their product.

Healthcare- Since Heineken operates in many different countries, they have established few programs regarding the World’s poverty deceases: malaria, tuberculosis and HIV/AIDS. There is Heineken Africa Foundation that works on the improvement for the health conditions of people from Sub Sahara Africa.

Economic Impact Studies- Heineken has established an Economic Impact Assessment (EIAs) which helps them measure their contribution to the community that they operate. [28]

Responsible Consumption

Heineken has created a website: www.enjoyheinekenresponsibly.com in order to teach their consumers about how to consume responsibly. The website is translated in 26 languages and has established its own logo.

Rules of Responsible Commercial Communication- Heineken never encourages alcohol misuse. Their target is people above the legal drinking age so they always follow their Rule of Responsible Commercial Communication while promoting their brand.

Cool @Work- They own a program called Cool@Work that is made to train their employees on how to consume alcohol responsibly. Their main goal is to decline rates of alcohol abuse and educate their staff of their unique responsibilities they has as a Heineken employee. [29]

Partnership for Progress

Heineken collaborates with many alcohol abuse organizations around the world. One of them is the European Alcohol and Health Forum whose purpose is promoting responsible beer consumption. [30]


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  2. "Heineken launches new iconic bottle across the globe" 12/01/2010
  3. "Heineken International" accessed 3/3/2011
  4. "Shareholder Information" accessed 3/3/2011
  5. "Heineken Holding N.V. trading update third quarter 2010" 10/27/2010
  6. "Bloomberg Businessweek" accessed 2/28/2011
  7. "Heineken Press Center" 2/16/2011
  8. "Shareholder Information" accessed 3/3/2011
  9. "Heineken Annual Report" accessed 02/28/2011
  10. "Industry Landscape" accessed 3/3/2011
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  12. "A Stronger More Competitive Global Business" accessed 2/28/2011
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  14. "Yahoo Finance Data" as of 2009
  15. "Heineken (HINKY) In The Limelight With The Femsa Deal (FMX)" 02/22/2010
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  17. "Profile: Heineken NV" accessed 02/28/2011
  18. "Countries and Brands" accessed 02/28/2011
  19. "Heineken N. V.: Global Branding and Advertising" 07/10/2008
  20. "Sky News" 2/16/2011
  21. "Heineken targets twenty-somethings with iPhone app" 6/24/2009
  22. "About Foursquare" accessed 3/4/2011
  23. "Corporate Governance" accessed 02/28/2011
  24. "About Heineken - Values and Principles" accessed 3/3/2011
  25. "Green Brewer" accessed 3/3/2011
  26. "Green Commerce" accessed 3/3/2011
  27. "Engineering Employees" accessed 3/3/2011
  28. "Heineken Cares" accessed 3/3/2011
  29. "Responsible Consumption" accessed 3/3/2011
  30. "Partnership for Progress" accessed 3/3/2011
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