Heineken International

Last updated

Heineken N.V.
Naamloze vennootschap
Traded as
Industry Beverage
Founded12 July 1864;154 years ago (1864-07-12)
Founder Gerard Adriaan Heineken
Headquarters,
Area served
Worldwide
Key people
Jean-François van Boxmeer (Chairman/CEO) [1]
Laurence Debroux (CFO) [1]
Products Heineken brands
RevenueIncrease2.svg 21.888 billion (2017) [2]
Increase2.svg €3.129 billion (2014) [3]
Increase2.svg €1.758 billion (2014) [3]
Total assets Increase2.svg €34.830 billion (2014) [3]
Total equity Increase2.svg €12.409 billion (2014) [3]
Number of employees
76,136 (2014) [3]
Website www.theheinekencompany.com

Heineken N.V. (Dutch pronunciation: [ˈɦɛinəkə(n)] ; at times self-styled as HEINEKEN) is a Dutch brewing company, founded in 1864 by Gerard Adriaan Heineken in Amsterdam. As of 2017, Heineken owns over 165 breweries in more than 70 countries. It produces 250 international, regional, local and speciality beers and ciders and employs approximately 73,000 people. [4]

Amsterdam Capital city of the Netherlands and municipality

Amsterdam is the capital city and most populous municipality of the Netherlands. Its status as the capital is mandated by the Constitution of the Netherlands, although it is not the seat of the government, which is The Hague. Amsterdam has a population of 854,047 within the city proper, 1,357,675 in the urban area and 2,410,960 in the metropolitan area. The city is located in the province of North Holland in the west of the country but is not its capital, which is Haarlem. The Amsterdam metropolitan area comprises much of the northern part of the Randstad, one of the larger conurbations in Europe, which has a population of approximately 8.1 million.

Contents

With an annual beer production of 188.3 million hectoliters in 2015, and global revenues of EUR 20,511 millions in 2015, [5] Heineken N.V. is the number one brewer in Europe and one of the largest brewers by volume in the world. [6] Heineken's Dutch breweries are located in Zoeterwoude, 's-Hertogenbosch and Wijlre. The original brewery in Amsterdam, closed in 1988, is preserved as a museum called Heineken Experience.

Beer alcoholic drink

Beer is one of the oldest and most widely consumed alcoholic drinks in the world, and the third most popular drink overall after water and tea. Beer is brewed from cereal grains—most commonly from malted barley, though wheat, maize (corn), and rice are also used. During the brewing process, fermentation of the starch sugars in the wort produces ethanol and carbonation in the resulting beer. Most modern beer is brewed with hops, which add bitterness and other flavours and act as a natural preservative and stabilizing agent. Other flavouring agents such as gruit, herbs, or fruits may be included or used instead of hops. In commercial brewing, the natural carbonation effect is often removed during processing and replaced with forced carbonation.

Zoeterwoude Municipality in South Holland, Netherlands

Zoeterwoude is a municipality in the western Netherlands, in the province of South Holland. The municipality covers 21.96 km2 (8.48 sq mi) of which 0.70 km2 (0.27 sq mi) is water. It had a population of 8,396 in 2017.

s-Hertogenbosch City and municipality in North Brabant, Netherlands

's-Hertogenbosch, colloquially known as Den Bosch, is a city and municipality in the Southern Netherlands with a population of 152,968. It is the capital of the province of North Brabant.

Since the merger between the two largest brewing empires in the world, Anheuser-Busch InBev and SABMiller, in October 2016, Heineken has been the second largest brewer in the world. [7]

Anheuser-Busch InBev Belgian-Brazilian multinational beverage and brewing company


Anheuser-Busch InBev SA/NV is a multinational drink and brewing holdings company based in Leuven, Belgium. Additional main offices are located in São Paulo, New York City, London, St. Louis, Mexico City, Bremen, Johannesburg and others. The company was enlarged in October 2016 when AB InBev purchased SABMiller and concluded a merger of the two entities. It has been the world's largest brewer even before the acquisition of SABMiller and is considered one of the largest fast-moving consumer goods (FMCG) companies in the world. The annual sales for the company in 2018 were US$54.6 billion; prior to the merger, ABInBev had realized US$45.5 billion in revenue in 2016. The company is expected to have a 28 percent market share of global volume beer sales in 2017, according to Euromonitor International.

SABMiller multinational brewing and beverage company

SABMiller plc. was a multinational brewing and beverage company headquartered in Woking, England on the outskirts of London until 10 October 2016 when it was acquired by Anheuser-Busch InBev. Prior to that date, it was the world's second-largest brewer measured by revenues and was also a major bottler of Coca-Cola. Its brands included Fosters, Miller, and Pilsner Urquell. It operated in 80 countries worldwide and in 2009 sold around 21 billion litres of beverages. Since 10 October 2016, SABMiller has been a business division of Anheuser-Busch InBev SA/NV, a Brazilian-Belgian corporation with headquarters in Leuven.

History

Previous logo until 2011 Heineken logo.svg
Previous logo until 2011
Interior of the former Heineken brewery in Amsterdam, which is now the museum Heineken Experience HeinekenExperience.jpg
Interior of the former Heineken brewery in Amsterdam, which is now the museum Heineken Experience
Exterior of the former Heineken brewery in Amsterdam on Stadhouderskade and Ferdinand Bolstraat Former Heineken Brewery in Amsterdam.jpg
Exterior of the former Heineken brewery in Amsterdam on Stadhouderskade and Ferdinand Bolstraat

Gerard Adriaan Heineken

The Heineken company was founded in 1864 when the 22-year-old Gerard Adriaan Heineken bought a brewery known as De Hooiberg (the haystack) in Amsterdam. In 1869 Heineken switched to the use of bottom-fermenting yeast. In 1873 the brewery's name changed to Heineken's Bierbrouwerij Maatschappij (HBM), and opened a second brewery in Rotterdam in 1874. In 1886 Dr. H. Elion, a pupil of the French chemist Louis Pasteur, developed the "Heineken A-yeast" in the Heineken laboratory. This yeast is still the key ingredient of Heineken beer.

Rotterdam Municipality in South Holland, Netherlands

Rotterdam is the second-largest city and a municipality of the Netherlands. It is located in the province of South Holland, at the mouth of the Nieuwe Maas channel leading into the Rhine–Meuse–Scheldt delta at the North Sea. Its history goes back to 1270, when a dam was constructed in the Rotte, after which people settled around it for safety. In 1340, Rotterdam was granted city rights by the Count of Holland.

Chemist scientist trained in the study of chemistry

A chemist is a scientist trained in the study of chemistry. Chemists study the composition of matter and its properties. Chemists carefully describe the properties they study in terms of quantities, with detail on the level of molecules and their component atoms. Chemists carefully measure substance proportions, reaction rates, and other chemical properties. The word 'chemist' is also used to address Pharmacists in Commonwealth English.

Louis Pasteur French chemist and microbiologist

Louis Pasteur was a French biologist, microbiologist and chemist renowned for his discoveries of the principles of vaccination, microbial fermentation and pasteurization. He is remembered for his remarkable breakthroughs in the causes and prevention of diseases, and his discoveries have saved many lives ever since. He reduced mortality from puerperal fever, and created the first vaccines for rabies and anthrax.

Henry Pierre Heineken

The founder's son, Henry Pierre Heineken  [ nl ], managed the company from 1917 to 1940, and continued involvement with the company until 1951. During his tenure, Heineken developed techniques to maintain consistent beer quality during large-scale production.

After World War I, the company focused more and more on exports. Three days after Prohibition ended in the United States, the first Heineken shipment landed in New York. From that day on, Heineken has remained one of the most successful imported beer brands in the United States.

World War I 1914–1918 global war originating in Europe

World War I, also known as the First World War or the Great War, was a global war originating in Europe that lasted from 28 July 1914 to 11 November 1918. Contemporaneously described as "the war to end all wars", it led to the mobilisation of more than 70 million military personnel, including 60 million Europeans, making it one of the largest wars in history. It is also one of the deadliest conflicts in history, with an estimated nine million combatants and seven million civilian deaths as a direct result of the war, while resulting genocides and the 1918 influenza pandemic caused another 50 to 100 million deaths worldwide.

Prohibition the outlawing of the consumption, sale, production etc. of alcohol

Prohibition is the act or practice of forbidding something by law; more particularly the term refers to the banning of the manufacture, storage, transportation, sale, possession, and consumption of alcoholic beverages. The word is also used to refer to a period of time during which such bans are enforced.

Alfred Henry Heineken

Heineken brewery in Zoeterwoude, Netherlands Zoeterwoude 003.jpg
Heineken brewery in Zoeterwoude, Netherlands

Henry Pierre's son, Alfred Henry "Freddy" Heineken, started working at the company in 1940, and in 1971 was appointed Chairman of the Executive Board. He was a powerful force behind Heineken's continued global expansion, and while he retired from the Executive Board in 1989, he maintained involvement with the company until his death in 2002.

During this period, Heineken tried to increase its stock price by purchasing competing breweries and closing them down. After World War II, many small breweries were bought or closed. In 1968 Heineken merged with its biggest competitor, Amstel, and in 1975 opened a new brewery in Zoeterwoude. The Amstel brewery was closed in 1980, and its production moved to Zoeterwoude and Den Bosch.

Present

With the part acquisition of Scottish and Newcastle in 2007/2008 Heineken became the third largest brewer based on revenues, behind the Belgian-Brazilian AB InBev and the British-South African SABMiller.

Since the merger between Anheuser-Busch InBev and SABMiller in October 2016, Heineken has been the second largest brewer in the world. [8]

On 12 January 2010, Heineken International successfully bought the brewery division of Mexican giant FEMSA, and also merged with the company, expanding its reach throughout Latin America. The company will sell its products there through FEMSA, which is the largest bottler and brewery in all of Latin America, and maker of such brands as Dos Equis XX, Bohemia and Sol. FEMSA now owns 20% of Heineken N.V. after the early 2010 all-stock deal, becoming its largest single shareholder after the Dutch families (Heineken family and Hoyer family) who owns 25.83% and public shareholders owning 54.17%. [9]

The FEMSA acquisition is expected to keep Heineken in its strong position by growing its market share in the Latin American markets. FEMSA has a massive distribution network and owns Mexico's largest convenience store chain OXXO, which has thousands of locations throughout the country.

In September 2014, it was announced that Heineken would sell its Mexican packaging business Empaque to Crown for around $1.23 billion. [10] Also during that month, Heineken revealed it was in talks to sell its Czech operations to Molson Coors. [11]

On 10 September 2015, Heineken International announced it would acquire a 50% stake in Lagunitas Brewing Company of Petaluma, California as part of an effort to allow Lagunitas to expand its operations globally. As part of the deal Lagunitas will no longer be considered a craft brewer as the Heineken stake is greater than 25%. [12]

In January 2017, Heineken announced it was in negotiations to buy the Kirin Company's 12 breweries in Brazil. [7] The following month, Heineken closed the deal and bought Brasil Kirin for US$700 million. [13]

After previously acquiring 50% of Lagunitas Brewing Company, Heineken announced, on 4 May 2017, it would be purchasing the remaining 50%—making it the sole owner of Lagunitas. [14]

In June 2018, Heineken named Maggie Timoney as the CEO of Heineken USA, making her the first woman to become a CEO of a major United States beer supplier. [15]

Global structure

Heineken organises the company into five territories which are then divided into regional operations. [16] The regions are: Western Europe, Central and Eastern Europe, The Americas, Africa and the Middle East, and Asia Pacific. These territories contain 115 brewing plants in more than 65 countries, [17] brewing local brands in addition to the Heineken brand.

Executive team

The executive of the company consists of the following people: [18]

Brewing plants

Heineken's brewing plants have been designed and engineered in 4 main parts of the world. [19]

Africa and the Middle East

Heineken has 17 operating companies in Africa and the Middle East. [20] These include:

Asia Pacific

Heineken Brewery in Surabaya, Indonesia COLLECTIE TROPENMUSEUM Luchtfoto van de brouwerij van Heineken's Nederlandsch-Indische Bierbrouwerij Maatschappij in Soerabaja TMnr 10015513.jpg
Heineken Brewery in Surabaya, Indonesia

Breweries in Asia Pacific: [20]

  • Cambodia Brewery Ltd (CBL) in Cambodia
  • Shanghai Asia Pacific Brewery in China
  • Hainan Asia Pacific Brewery Company Ltd in China
  • Guangzhou Asia Pacific Brewery in China (under construction)
  • Multi Bintang Indonesia in Indonesia
  • Lao Asia Pacific Brewery in Lao
  • Sungai Way Brewery in Malaysia
  • DB Breweries in New Zealand
  • South Pacific Brewery Ltd (SPB) in Papua New Guinea
  • Asia Pacific Breweries in Singapore
  • Asia Pacific Brewery Lanka Limited (APB Lanka) in Sri Lanka
  • Thai Asia Pacific Brewery in Thailand
  • Heineken Vietnam Brewery Co Ltd in Vietnam
  • Heineken Hanoi Brewery Co Ltd in Vietnam
  • United Breweries Ltd Bangalore in India

Europe

Heineken offices in Madrid, Spain. Edificio Monteolmo (Madrid) 03.jpg
Heineken offices in Madrid, Spain.

Breweries in Europe: [20]

The Americas

Breweries in the Americas: [20]

On 20 January 2017, Heineken NV and Kirin Holdings confirmed they were in negotiations for Heineken to acquire Kirin's beer operations in Brazil. Kirin had earlier bought assets in Brazil in 2011 with the local brewer Schincariol, which makes Nova Schin and Baden Baden. [22]

Beer brands

Heineken International owns a worldwide portfolio of over 170 beer brands, mainly pale lager, though some other beer styles are produced. The two largest brands are Heineken and Amstel; though the portfolio includes Cruzcampo, Affligem, Żywiec, Starobrno, Tiger Beer, Zagorka, Red Stripe, and Birra Moretti. Heineken has added a cider blend named Jillz to their list of brands. Since mid-2007, Heineken has also taken ownership of former S&N International brands such as Strongbow and Bulmers Ciders and John Smith's and Newcastle Brown Ale. [23] In 2010, Heineken bought Mexican brewery FEMSA Cerveza, including brands Tecate, Sol, Dos Equis, Indio and Kloster.

Ownership

The shares of Heineken International are traded on the NYSE Euronext Amsterdam and OTCQX under the symbols: HEIA and HEINY respectively. As at 31 December 2013, the shareholding in the group's stock was as depicted in the table below: [24]

Heineken Internationalstock ownership
RankName of Owner% Ownership
1Heineken Holding N.V150.005
2 Fomento Económico Mexicano, S.A.B. de C.V2 12.532
3Others37.463
Total100.00
  1. Heineken Holding N.V is a public company listed on the NYSE Euronext Amsterdam. Its single investment is Heineken International. It is majority owned by L’Arche Green N.V an investment vehicle of the Heineken family and the Hoyer family.
  2. Fomento Económico Mexicano, S.A.B. de C.V (FEMSA) holds an additional 14.935% in Heineken Holding N.V bringing the total direct and indirect shareholding in Heineken International to 20%.

Marketing

Advertising

Heineken's main advertising slogan in the UK was "Refreshes the parts other beers cannot reach", [25] some of which featured voice-over narration by Danish comedian/pianist Victor Borge. The British TV campaign ran for over 30 years – stopping in 2005. [26] [27] From March 2011 they have been advertising using the song 'The Golden Age' by The Asteroids Galaxy Tour. After the success of The Entrance, a web advert (4M views in YouTube), Heineken launched The Date in May 2011. [28]

In March 2017 in Amsterdam, Heineken opened a pop-up bakery for five days to promote the yeast used in its brewing. The bread was made by Mark Plaating and proceeds were donated to a local baking guild. [29]

Sponsorships

Rugby ball used in the Heineken Cup Heineken Cup 2010-2010 ballon.jpg
Rugby ball used in the Heineken Cup

Heineken sponsors several sporting events. The Heineken Cup was an annual rugby union knock-out competition involving leading club, regional and provincial teams from the Six Nations: England, France, Scotland, Wales, Ireland, and Italy. Heineken was the title sponsor from the cup's inaugural tournament in 1995-96, until the tournament ceased in 2014 and was replaced by the Champions Cup. Heineken continued its sponsorship of European Club Rugby as the principle partner of the European Rugby Champions Cup returning to title sponsorship of the Champions Cup from 2018–19. They have been credited as the Founding Partner of European Rugby.

A can of Heineken with a logo of the 2011 UEFA Champions League Final Heineken can 2011 UEFA Champions League Final.jpg
A can of Heineken with a logo of the 2011 UEFA Champions League Final

Heineken has been an integral partner of the UEFA Champions League since 2005, with a theme of "Enjoyed together around the world." [30] The Heineken Open (tennis) is a tennis tournament on the ATP International Series played in Auckland, New Zealand. Heineken also sponsors the music events: the Heineken Open'er Festival, a contemporary music festival held in Poland; and, since 2004, the Oxegen music festival in Ireland. Heineken sponsors the Ballyheigue Summerfest in County Kerry, Ireland. In 2016, Heineken became the Official Beer of the Formula One World Championship after the Canadian Grand Prix. [31]

Holland Heineken House

Since 1992 Heineken organises, together with NOC*NSF, the Dutch meeting place at all the Olympic Games, called the Holland Heineken House.

Heineken Experience

Inside the Heineken Experience HeinekenExperience.jpg
Inside the Heineken Experience

The Heineken Experience is a museum about Heineken Pilsener and the Heineken brewery, based in the original brewery in Amsterdam. The original building was built in 1867, and was in use as a brewery until 1988. [32] In 1991, when part of the establishment was torn down, the Heineken Reception and Information Centre (Dutch : Heineken ontvangst- en informatiecentrum) was opened in the remaining building. In 2001 the name was changed to Heineken Experience. [33]

The museum features "rides", interactive exhibits, and two bars. It also gives an insight into the company's history and brewing processes through the years. Visitors receive one small tasting glass and two full-sized glasses of Heineken beer to drink at the end of the tour, both paid for by the 21 euro entry fee.

Price fixing convictions

On 18 April 2007 the European commission fined Heineken €219.3m, Grolsch €31.65m and Bavaria €22.85m for operating a price fixing cartel in the Netherlands, totalling €273.7m. InBev, (formerly Interbrew), escaped without a penalty because it provided "decisive information" about the cartel which operated between 1996 and 1999 and others in the EU market. The brewers controlled 95% of the Dutch market, with Heineken claiming a half and the three others 15% each. [34]

Neelie Kroes said she was "very disappointed" that the collusion took place at the very highest (boardroom) level. She added, Heineken, Grolsch, Bavaria and InBev tried to cover their tracks by using code names and abbreviations for secret meetings to carve up the market for beer sold to supermarkets, hotels, restaurants and cafes. The price fixing extended to cheaper own-brand labels and rebates for bars. [34]

In 2004 Heineken and Kronenbourg (then part of Scottish and Newcastle), the two dominant brewers in France, were fined €2.5m - with the penalty reduced for co-operating. [34]

Related Research Articles

Foster's Lager is an internationally distributed brand of lager. It is owned by the international brewing group AB InBev, and is brewed under licence in a number of countries, including its biggest market, the UK, where the European rights to the brand are owned by Heineken International.

Beer and breweries by region Wikimedia list article

This is a list of articles and categories dealing with beer and breweries by region: the breweries and beers in various regions. Beer is the world's most widely consumed alcoholic drink, and is the third-most popular drink overall, after water and tea. It is thought by some to be the oldest fermented drink. A brewery is a dedicated building for the making of beer, though beer can be made at home, and has been for much of beer's history. A company that makes beer is called either a brewery or a brewing company. The diversity of size in breweries is matched by the diversity of processes, degrees of automation, and kinds of beer produced in breweries. A brewery is typically divided into distinct sections, with each section reserved for one part of the brewing process.

The Molson Brewery was formed in 1786 in Montreal by the Molson family. In 2005, Molson merged with US-based Coors to form Molson Coors Brewing Company, the world's seventh-largest brewery at that time. Molson Coors Canada Inc. is the name of the Canadian subsidiary of Molson Coors Brewing Company. Molson's first brewery was located on the Saint Lawrence River in Montreal, where the company continues to maintain its operations today.

Grolsch Brewery Dutch brewery

Grolsch Brewery , known simply as Grolsch, is a Dutch brewery founded in 1615 by Willem Neerfeldt in Groenlo. In 1895 the de Groen family bought the brewery. They had started their own brewery in Cuijk the Netherlands in the early 19th century. It held a significant stake until November 2007. The main brewery is located today in Enschede.

Ambev, formally Companhia de Bebidas das Américas, is a Brazilian brewing company who has joined a Belgian company Anheuser-Busch InBev. It was created on July 1, 1999, with the merger of two breweries, Brahma and Antarctica. The merger was approved by the board of directors of the Brazilian Administrative Council for Economic Defense (CADE) on March 30, 2000. The headquarters are in São Paulo, Brazil. It is the largest company of Brazil by market capitalization and the third largest in Southern hemisphere.

Kirin Company

Kirin Company, Limited is an integrated beverages company. It is a subsidiary of Kirin Holdings Company, Limited. Its major operating units include Kirin Brewery Company, Limited, Mercian Corporation and Kirin Beverages Company, Limited. Kirin is a member of the Mitsubishi UFJ Financial Group (MUFG) keiretsu.

Brazil is the world's third largest beer market with total volume at 139 million hectoliters, and per capita consumption 61 liters in 2016.

Beer in the Netherlands

Beer in the Netherlands is known for the pale lagers, especially Heineken and Grolsch that are consumed globally. Grolsch is the leading import lager in the United Kingdom. Heineken is the world's third-largest brewer of beer, after Anheuser-Busch InBev and SABMiller.

Brasil Kirin is a Brazilian brewery and drink company, the second largest in the country after AmBev. Founded in 1939 as Schincariol, the company was purchased in 2011 by the Kirin Company. In 2017, Kirin sold the company to Heineken N.V. of the Netherlands.

Heineken Lager Beer, or simply Heineken is a pale lager beer with 5% alcohol by volume produced by the Dutch brewing company Heineken International. Heineken is well known for its signature green bottle and red star.

Amstel Brewery Dutch brewery

Amstel Brewery is a Dutch brewery founded in 1870 on the Mauritskade in Amsterdam, Netherlands. It was taken over by Heineken International in 1968, and the brewing plant closed down in 1982, with production moving to the main Heineken plant at Zoeterwoude.

The Lagunitas Brewing Company, founded in 1993 in Lagunitas, California, is a subsidiary of Heineken International. It is known for iconoclastic interpretations of traditional beer styles, and irreverent descriptive text and stories on its packaging. Before Heineken purchased a 50% share in the company in 2015, Lagunitas Brewing was considered a craft brewery, and in 2013 it was ranked as the fifth top selling craft brewery in the United States. Heineken purchased the remainder of the company in 2017.

Beer in Asia

Beer in Asia began when beer was produced in Sumer, Mesopotamia circa 6000 years ago. Its was introduced by Europeans in the 19th century, with modern breweries established in British India, the Dutch East Indies, China, and Japan. Asia's first modern brewery was established in 1830 in British India entirely using European brewing technology.

Heineken International is a group which owns a worldwide portfolio of over 170 beer brands, mainly pale lager, though some other beer styles are produced. As of 2006, Heineken owns over 125 breweries in more than 70 countries and employs approximately 57,557 people.

InBev is a brewing company that resulted from the merger between Belgium-based company Interbrew and Brazilian brewer AmBev which took place in 2004. It existed independently until the acquisition of Anheuser-Busch in 2008, which formed Anheuser-Busch InBev. InBev had operations in over 30 countries and sales in over 130 countries. In 2006, it had a market capitalization of €30.6 billion and net profit of €3.2 billion on sales of €13.3 billion.

Bralirwa Brewery

Bralirwa, also known by its French name Brasseries et Limonaderies du Rwanda, is the largest brewer and soft beverage company in Rwanda. Its shares of stock are listed on the Rwanda Stock Exchange, where they trade under the symbol:BLRW. As of December 2017, the company's total assets were valued at RWF:127.73 billion, with shareholders' equity of RWF:35.7 billion.

Fraser and Neave

Fraser and Neave, Limited (F&N) is a food and beverage, publishing and former brewing and property industries conglomerate in Singapore.

Brarudi

Brarudi S.A., also known by its French name Brasseries et Limonaderies du Burundi, is the largest brewer and soft beverage company in the Republic of Burundi.

Commercial brewing of beer in Myanmar commenced in 1886 and until 2015 was dominated by a single producer, Myanmar Brewery Ltd.

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