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Heineken N.V.

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For other uses, see Heineken (disambiguation).
Heineken International
Company typePublic (Euronext: HEIA)
IndustryBeverages
Founded1864
HeadquartersNetherlandsAmsterdam, Netherlands
Key people
Jean-François van Boxmeer (CEO), René Hooft Graafland (CFO)
ProductsBeers and lagers
RevenueIncrease €11.829 billion (2006)[1]
Increase €1.805 billion (2006)[1]
Increase €1.345 billion (2006) [1]
Number of employees
57,557 (2006)[1]
Websitewww.heinekeninternational.com

Heineken International is a Dutch brewing company, founded in 1864 by Gerard Adriaan Heineken in Amsterdam. As of 2006, Heineken owns over 115 breweries in more than 65 countries and employs approximately 57,557[1] people. It brews and sells more than 170 international premium, regional, local and specialty beers, including Cruzcampo, Tiger Beer, Żywiec, Starobrno, Zagorka, Birra Moretti, Ochota, Murphy’s, Star and of course Heineken Pilsener. Heineken claims that the original Heineken recipe has not changed since the beer was first produced nearly 150 years ago.

With an annual beer production of 121.8 million hectoliters, Heineken ranks as the third largest brewery in the world after SABMiller and InBev, based on revenue. Heineken's Dutch breweries are located in Zoeterwoude, 's-Hertogenbosch and Wielre. The original brewery in Amsterdam, closed in 1988, is preserved as a museum called Heineken Experience.

History

History

Former Heineken brewery in Amsterdam, now the Heineken Experience on Stadhouderskade and Ferdinand Bolstraat

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 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. In 1887 Heineken switched to the use of bottom-fermenting yeast.

The founder's son, Henry Pierre Heineken, 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. Henry Pierre's son, Alfred Henry "Freddy" Heineken, started working at the company in 1940, and 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.

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

Expansion

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.

Global structure

Heineken organises the company into five territories which are then divided into regional operations.[2] 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,[3] brewing local brands in addition to the Heineken brand.

Brewing plants

Heineken's brewing plants.[4]

Africa and the Middle East

Heineken brewery in Zoeterwoude

Heineken has 16 breweries in Africa and the Middle East.[5] These include:

Asia Pacific

Breweries in Asia Pacific:[6]

Europe

Breweries in Europe:[7]

The Americas

Breweries in the Americas:[8]

Beer brands

Main article: Heineken 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, Zagorka, and Birra Moretti. Recently Heineken 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.[9]

Marketing

File:Heineken advertising.jpg
A variety of Heineken adverts

Advertising

Heineken's main advertising slogan in the UK was "Refreshes the parts other beers cannot reach". The British TV campaign ran for over 30 years - stopping in 2005.[10][11]

Sponsorships

Heineken sponsors a number of sporting events. The Heineken Cup is 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 has been the sponsor since the cups' inaugural tournament in 1996.

The Heineken Open (tennis) is a tennis tournament on the ATP International Series played in Auckland, New Zealand.

In March 2007 Heineken announced a new advertising campaign for the Heineken brand in partnership with the UEFA Champions League, with a theme of "Enjoyed together around the world."[12]

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 Experience

Main article: Heineken Experience

The Heineken Experience is a museum about Heineken Pilsener and the Heineken brewery, based in the original brewery in Amsterdam. The building was built in 1867, and was in use as a brewery until 1988.[13] In 1991, when part of the establishment was torn down, the Heineken Treat and Information Centre (Dutch: Heineken ontvangst- en informatiecentrum) was opened in the remaining building. In 2001 the name was changed to Heineken Experience.[14]

The museum features "rides", interactive exhibits, and two bars (with two glasses of Heineken covered by the entry fee). It also gives an insight into the company's history and brewing processes through the years.

As of October 2007, the Experience is closed for refurbishment and is due to re-open in October 2008[15]

Controversy

Racist Memo

On January 5, 1996 a leaked fax caused public outcry due to the racist statement of Justus Kos, a top executive in the marketing department, contained within. Justus Kos said that "there was too high a proportion of negroes" in the audience of the premier episode of the youth culture show Hotel Babylon. [16] Karel Vuursteen, chief executive at Heineken, issued a public apology saying "It should never have been written. I am truly shocked about the content ... since it is totally against everything Heineken stands for."[16]

Price fixing convictions

On April 18, 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.[17]

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.[17]

In 2004 Heineken and Kronenbourg, the two dominant brewers in France, were fined €2.5m - with the penalty reduced for co-operating.[17]

This is simply unacceptable: that major beer suppliers colluded to up prices and to carve up markets among themselves[17]

— EU Competition Commissioner Neelie Kroes

References

  1. ^ a b c d e "Annual Report 2006". www.heinekeninternational.com. Heineken International. Retrieved 2007-07-28. {{cite web}}: External link in |work= (help) Cite error: The named reference "annualreport2006" was defined multiple times with different content (see the help page).
  2. ^ Countries and brands – Profile – Annual Report 2007
  3. ^ Heineken International Heineken International - Profile
  4. ^ Heineken International Breweries
  5. ^ "Africa & the Middle East". www.heinekeninternational.com. Heineken. Retrieved 2007-05-08. {{cite web}}: External link in |work= (help)
  6. ^ "Asia Pacific". www.heinekeninternational.com. Heineken. Retrieved 2007-05-08. {{cite web}}: External link in |work= (help)
  7. ^ "Europe". www.heinekeninternational.com. Heineken. Retrieved 2007-05-08. {{cite web}}: External link in |work= (help)
  8. ^ "The Americas". www.heinekeninternational.com. Heineken. Retrieved 2007-05-08. {{cite web}}: External link in |work= (help)
  9. ^ "Heineken International Brands". www.heinekeninternational.com. Heineken International. Retrieved 2007-04-28. {{cite web}}: External link in |work= (help)
  10. ^ Heineken calls last orders on television ads after 30 years - Times Online
  11. ^ Attempt to reach other parts with stronger beer - Times Online
  12. ^ Heineken International Heineken announces new UEFA Champions League
  13. ^ "About Heineken Experience". www.heinekenexperience.com. Heineken Experience. Retrieved 2007-04-28. {{cite web}}: External link in |work= (help)
  14. ^ "Nederlandse Biermusea". De Biersite. Retrieved 2007-04-28. {{cite web}}: External link in |work= (help)
  15. ^ "About Heineken Experience". www.heinekenexperience.com. Heineken Experience. Retrieved 2007-11-21. {{cite web}}: External link in |work= (help)
  16. ^ a b "Heineken brewery lock in TV racism row". Reuter. January 5. Retrieved 2008-10-19. {{cite news}}: Check date values in: |date= (help); Cite has empty unknown parameter: |coauthors= (help)
  17. ^ a b c d "Heineken and Grolsch fined for price-fixing". The Guardian. Retrieved 2007-08-01. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
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