Heineken International

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Heineken International
Type	Public (Euronext: HEIA)
Founded	1864
Headquarters	Amsterdam, Netherlands
Key people	Jean-François van Boxmeer (CEO), René Hooft Graafland (CFO)
Industry	Beverages
Products	Beers and lagers
Revenue	▲ € 11.829 billion (2006)[1]
Operating income	▲ € 1.805 billion (2006)[1]
Net income	▲ € 1.345 billion (2006) [1]
Employees	57,557 (2006)[1]
Website	www.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, 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 and 's-Hertogenbosch. The original brewery in Amsterdam, closed in 1988, is preserved as a museum called Heineken Experience.

Contents 1 History 1.1 History 1.2 Expansion 2 Global structure 2.1 Brewing plants 2.1.1 Africa and the Middle East 2.1.2 Asia Pacific 2.1.3 Europe 2.1.4 The Americas 2.2 Beer brands 3 Marketing 3.1 Advertising 3.2 Sponsorships 3.3 Heineken Experience 4 Price fixing convictions 5 References 6 External links

[edit] History

[edit] History

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.

[edit] 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.

[edit] 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.

[edit] Brewing plants

Heineken's brewing plants.^[4]

[edit] Africa and the Middle East

Heineken have 16 breweries in Africa and the Middle East.^[5] These include, Al Ahram Beverages Company in Egypt; Tempo Beer Industries in Israel and Nigerian Breweries in Nigeria. Others are Brarudi; Brasseries du Cameroun; Brasseries du Congo; Bralima, Democratic Republic of Congo; Guinness Ghana Breweries Ltd.; General Investment, Jordan; Brasserie Almaza, Lebanon; Société des Brasseries du Maroc; Namibia Breweries; Consolidated Breweries, Nigeria; Brasseries de Bourbon, Réunion; Bralirwa, Rwanda; and Sierra Leone Brewery.

[edit] Asia Pacific

Breweries in Asia Pacific:^[6]

• Shanghai Asia Pacifc Brewery in China
• Multi Bintang Indonesia in Indonesia
• Guinness Anchor Berhad in Malaysia
• DB Breweries in New Zealand
• Asia Pacific Breweries in Singapore
• Thai Asia Pacific Brewery in Thailand
• Vietnam Brewery in Vietnam
• Hatay Brewery in Vietnam

[edit] Europe

Breweries in Europe:^[7]

• Brau Union Österreich in Austria
• Syabar Brewing Company in Belarus
• Zagorka Brewery in Bulgaria
• Karlovačka pivovara in Croatia
• Starobrno in Czech Republic
• Athenian Brewery in Greece
• Heineken Hungária in Hungary
• Heineken Ireland in Ireland
• Heineken Italia in Italy
• Dinal in Kazakhstan
• Pivara Skopje in Republic of Macedonia
• Heineken Nederland in the Netherlands
• Grupa Żywiec in Poland
• Heineken Romania in Romania
• Heineken Brewery LLC in Russia
• Pivara MB in Serbia
• Heineken Slovensko in Slovakia
• Heineken España in Spain
• Heineken Switzerland in Switzerland
• Newcastle Federation Breweries in Gateshead, England.

[edit] The Americas

Breweries in the Americas:^[8]

• Companias Cervecerias Unidas Argentina in Argentina
• Commonwealth Brewery in Bahamas
• Cervejarias Kaiser Brazil in Brazil
• Cerveceria CCU Chile in Chile
• Cerveceria Costa Rica in Costa Rica
• Cerveceria Nacional Dominicana in Dominican Republic
• Desnoes & Geddes in Jamaica
• Cerveceria del Baru, S.A. in Panama
• Windward & Leeward Brewery in Saint Lucia
• Surinaamse Brouwerij in Surinam

[edit] 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.^[9]

[edit] Marketing

[edit] 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]

[edit] 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.

[edit] 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 three 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 June 2008^[15]

[edit] 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.^[16]

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.^[16]

In 2004 Heineken and Kronenbourg, the two dominant brewers in France, were fined €2.5m - with the penalty reduced for co-operating.^[16]

“	This is simply unacceptable: that major beer suppliers colluded to up prices and to carve up markets among themselves[16]	”
—EU Competition Commissioner Neelie Kroes

[edit] References

[edit] External links

• Heineken International
• Heineken University
• Heineken Experience

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