Professional Documents
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HEINEKEN Americas
HEINEKEN strategy to win in Americas
2003
Managing Director Positions in Burundi, Egypt and France
1
Agenda
HEINEKEN strategy to win in Americas
Western Europe
60
45
30
15
HEINEKEN countries
Population growth
2015F-2020F 12 6 10 7 7 5 6 3 7 8 4 1 6 4 4 4 6 4 -5 4 5
in percentages
HEINEKEN countries
23%
11% 10%
9% 8% 8% 7%
5% 5%
2%
Panama USA Chile Canada Peru Ecuador Costa Rica Argentina Brazil Guatemala Honduras Venezuela Mexico El Salvador Nicaragua
Total beer
market size 3 231 7 20 14 7 2 18 143 2 2 22 69 1 1
2014 (MHL)
200
Premium expansion in mature markets where
HEINEKEN Americas is well positioned to +0.2% +1.4% USA
capture growth
0
2010 2014 2020F
Source: Canadean.
6 *Andean includes Venezuela, Peru, Colombia, Equador.
2. Americas is an important contributor
to HEINEKENs business
Group beer volume Heineken Consolidated EBIT
29.5mhl
#2 #1
Costa Rica
Suriname St. lucia
#1
Brazil #1 #1
#2
Panama
#2
Bahamas
9 Operating Companies Chile Argentina
#1
6 Joint Ventures/ Associates #1 #2
40+ Export Markets
Mexico USA Brazil Canada Chile Argentina Panama Haiti Bahamas St Lucia Jamaica
Heineken
Heineken Amstel Light
INTERNATIONAL Heineken Heineken Heineken Heineken
Strongbow Strongbow Heineken Heineken
Sol Strongbow Amstel Heineken Heineken Heineken Strongbow
AND DOMESTIC Bohemia Lagunitas2 Sol Guinness1
Desperados Dos Equis Imperial2 Guinness1 Guinness1 Guinness1 Desperados
PREMIUM Affligem Dos Equis Royal Guard
Xingu Newcastle Budweiser2 Guinness1
Red Stripe
Newcastle
Coors1
UPPER MAINSTREAM & Dos Equis
Cristal2 Panama Red Stripe
Sol Tecate Schneider2 Prestige Kalik Piton
MAINSTREAM Escudo2 Soberana Dragon
Indio
Tecate
Superior
Kaiser Palermo2 Malta
(LOWER) MAINSTREAM Carta Blanca Eclipse
Bavaria Bieckert2 Talawah
Kloster
11
3. Regional strategic priorities
Defined strategy to capture regional specific opportunities
1 2 3 4 5 6
Share of
Premium
17%
14%
13%
10%
Volume
6%
development
in khl
'89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 14
2007 2008 2009 2010 2011 2012 2013 2014 L52W 2010 2014
2015*
14
2
Lead by Cool marketing and innovation
Marketing is driving consumer pull for our brands and innovations delivering sustainable top line growth
15
3
Shape the Cider Category
Focus on Strongbow in the US is rapidly gaining momentum, driving double digit volume growth
HUSA and Canada account for 91% of volume. Nielsen Grocery through 01/03/2015, Brand Franchise.
16
3
Strongbow
Video
17
4
Driving E2E Productivity
To deliver increased efficiencies at the business
Productivity Improvement
15 6,000
Ongoing productivity gains and cost saving initiatives have
improved costs as % of revenue.
Main cost saving initiatives generated over 234m savings
(excluding IPO synergies) in the course of three years (2011-2014):
10 4,000 Supply Chain: FTE headcount optimization, Consumer value
Engineering, Energy and Electricity Savings, Network
Optimization
Commerce: FTE headcount efficiencies, Retail operation
improvement in Mexico, Sponsorship improvements, Agency
5 2,000 Fees Savings
2012 2013 2014 2015YTD
Support: FTE headcount optimization
Productivity per mhl / FTE Production FTEs
18
5
Be Commercially Assertive
To drive excellence in outlet execution
19
6
Brewing a Better World
Sustainability is embedded in HEINEKEN Americas strategy
Eco-efficiency: Tangible
Cool@work & alcohol policy Haiti sorghum projects with
targets for energy and water
Extending safety from brewery Deliver on global industry Clinton initiative to stimulate
reduction
to sales & distribution commitments local farmers harvest
Water stewardship initiatives
including road safety 10% media spend target on Ongoing compliance to
in Mexico with local
Company wide Safety Strategy Enjoy Heineken responsibly Supplier Code Procedure
community for brewers for
(the 5Cs) and 12 Life Saving sustainable water supply in
Rules scarce areas
20
4. HEINEKEN Mexico
Attractive growth prospect for beer
21
4. HEINEKEN Mexico
Strong Topline growth since the acquisition
Sub-Premium
12.9%
Mainstream
Below Mainstream
2010 2014 2010 2014 2010 2014
Value
1 Includes domestic beer operations only
22 2 Includes domestic beer and export operations
Tecate
Video
23
4. HEINEKEN USA
Portfolio Strategy driving improved share
24
4. The Mexican brands are driving market share...
With outperformance vs the US market since 2012
Tecate Original
-5% CAGR
Tecate Light
34% CAGR
Heineken US Brand split 2005 Heineken US Brand split 2014 Dos Equis
Others Others 14% CAGR
Heineken
Mexican 2010 2011 2012 2013 2014
brands
Heineken
25
Dos Equis
Video
26
4. HEINEKEN Brazil
Driving increased share by winning in the Premium segment
Facts
6 Breweries Main Brands #2 in premium segment with Heineken
12.1mhl Beer Heineken complemented by premium
9.4% Market share portfolio
#3 Position
Exciting potential longer term, despite
near term economic challenges
12%
Premium 11% Expanding capacity with 7th brewery
SOM 9%
8% Strategic partnership with Coca-Cola
7%
6% bottlers provides scale
5% 5%
17%
13% 14%
10%
6%
28
4. Canada, Caribbean and Export Markets
Diverse and profitable markets offer further opportunity for growth
Group Beer
11,272 km
Revenue
5 Brewery markets
4 Joint Ventures / Associates
40+ Export Markets
29
5. Summary
Whats Brewing Seminar HEINEKEN Americas
30