Retail News CRM

Tag: Heineken

  • Heineken Thrives in First Half of Fiscal Year Despite Cutting 3000 Jobs

    Heineken Thrives in First Half of Fiscal Year Despite Cutting 3000 Jobs

    Heineken, the renowned brewing titan, has reported a substantial surge in growth during the first half of this fiscal year, following its decision to eliminate 3000 roles within the organization.

    The company declared a $24.3 billion revenue during this period, signifying a 2.7% increment, and correspondingly, a net profit of about $2 billion, marking a 10.2% rise.

    The organization’s CFO, Harold van den Broek, gave an account of these financial outcomes prior to the scheduled appointment of the company’s prospective CEO, Rafa Oliveira, set to take the helm on October 1.

    Van den Broek articulated, “We recorded volume expansion and a sturdy operating profit surge, with all our five global brands witnessing growth and maintaining promising momentum in our premium and beyond beer portfolios.” He further added, “The performance is indicative of the caliber of our progressive growth, the flexibility of our advantageous footing, and our ability to acclimate and execute in a fluctuating landscape. We further initiated major measures to enhance productivity and foster future-ready competencies, ensuring we efficiently catalyze further growth.”

    The Asia Pacific region was Heineken’s most robust source of revenue growth, with a staggering increase of 10.57%. Conversely, the company’s year-on-year growth in the Americas remained static.

    Emphasizing the company’s cautious approach in light of uncertain circumstances, van den Broek remarked, “We have confidence in our strategy and its progress, but we continue to exercise caution due to the persisting macroeconomic and geopolitical volatility.”

    The company’s prudence was demonstrated earlier this year, in February, when it declared 3000 job cuts in the first half of the fiscal year. In addition to these job reductions, Heineken anticipates eliminating another 3000 roles before the onset of the next fiscal year. The company asserts that these cuts have considerably expedited organizational transformations.

    Questions & Answers

    What was Heineken’s net profit and revenue growth in the first half of the fiscal year?
    Heineken reported a $24.3 billion revenue, a 2.7% increase, and approximately $2 billion in net profit, a 10.2% increase.

    Who is set to become Heineken’s new CEO?
    Rafa Oliveira is expected to become the new CEO of Heineken, with his appointment scheduled for October 1.

    What is the company’s approach in response to ongoing macroeconomic and geopolitical uncertainty?
    Heineken is exercising caution and prudence in response to ongoing uncertainties, as evidenced by its job reduction strategy and emphasis on efficiency and productivity.

  • Heinz and Heineken Unveil Limited-Edition Combo: Beer Meets Ketchup in Epic 150-Year Brand Collaboration

    Heinz and Heineken Unveil Limited-Edition Combo: Beer Meets Ketchup in Epic 150-Year Brand Collaboration

    Iconic brands Heinz and Heineken have teamed up to release a unique, limited-edition six-pack that combines their popular ketchup and beer products. This creative collaboration is not introducing a new consumption trend, but rather capitalizes on an already established pattern of consumer behaviour.

    Long-standing Consumer Habits Inspire Collaboration

    The pairing of these two beloved products acknowledges how they are often consumed together at various social settings. Be it a casual gathering, a sporting event, a barbecue, or simply during a burger meal, the consumption of Heinz ketchup and Heineken beer is a common occurrence.

    Dana Katz, Director of Integrated Communications at Heineken, stated that this brand pairing has been 150 years in the making. She emphasized that instead of creating a novel habit, this collaboration is a testament to what consumers have been doing for decades.

    The unique concept behind the partnership, according to Katz, emerged from an already existing link between the two brands. She mentioned that the idea didn’t feel like a new creation, but more of a discovery of something which had been hidden in plain sight, going even as far as the similarity in the brand names.

    Rolling Out in Select International Markets

    The exclusive Heinz x Heineken six-pack is set to hit the shelves in a number of selected international markets. These include the United Kingdom, Ireland, and Canada.

    Questions & Answers

    What is the unique selling proposition of the Heinz x Heineken six-pack?
    The unique selling point of this product is it combines two popular items that are often consumed together, Heinz ketchup and Heineken beer, into one convenient pack.

    Where will the Heinz x Heineken pack be available?
    The pack will be available in selected international markets, including the UK, Ireland, and Canada.

    What inspired the collaboration between Heinz and Heineken?
    The concept emerged from an already existing link between the two brands, recognizing that their products are often consumed together in various social settings.

  • Heineken CEO Dolf van den Brink Announces Exit, Readies Company for Next Chapter of Growth

    Heineken CEO Dolf van den Brink Announces Exit, Readies Company for Next Chapter of Growth

    Heineken’s chief executive officer, Dolf van den Brink, has announced that he will be relinquishing his position on May 31, putting an end to his near six-year tenure as the leader of the renowned Dutch brewer.

    Career Overview of an Esteemed Leader

    Van den Brink boasts of a remarkable history with Heineken, spanning more than 28 years. During his time with the company, he climbed the corporate ladder to spearhead the organization through a global expansion phase and a crucial strategic reorientation. His forthcoming departure aligns with Heineken’s ongoing implementation of its EverGreen Strategy 2030, which concentrates on sustainability, premiumisation, and digital transformation across principal markets. Van den Brink has committed to continue providing guidance in an advisory capacity for eight months to ensure a seamless transition of leadership.

    In a statement on his LinkedIn account, van den Brink expressed his gratitude, saying, “Having the opportunity to lead Heineken has been the most significant honour of my professional life, and this decision was undoubtedly one of the most difficult I’ve had to make. Over the last six years, we have instigated a substantial transformation of the business and successfully delivered EverGreen 2025, all the while navigating a challenging external landscape. Having recently introduced the bold EverGreen 2030 strategy, I believe it’s the right time for a leadership shift to further actualize this vision.”

    Commendation and Succession Planning

    Peter Wennink, the chair of Heineken’s Supervisory Board, lauded van den Brink’s leadership and announced that the board is now initiating a global search for his replacement. Wennink stated, “The next phase will be centered around bringing this strategy to life through disciplined execution of our strategic growth ambitions. With this in mind, the Supervisory Board agrees it is the appropriate time to commence the succession process to secure robust leadership for the future.”

    However, Heineken has not yet disclosed a timeline for the appointment of its new CEO.

    In October, Heineken revealed a refreshed five-year plan that aims to drive growth with fewer resources by focusing on core brands and markets. Under this strategy, Heineken anticipates a mid-single-digit annual organic net revenue growth through 2030.

    Questions & Answers

    What is Dolf van den Brink’s tenure period with Heineken?
    Van den Brink has been with Heineken for more than 28 years, serving as CEO for nearly six years.

    What is the EverGreen Strategy 2030?
    The EverGreen Strategy 2030 is Heineken’s plan focusing on sustainability, premiumisation, and digital transformation across key markets.

    What does Heineken’s updated five-year plan entail?
    Heineken’s updated five-year plan targets growth with fewer resources by concentrating on key brands and markets, expecting a mid-single-digit annual organic net revenue growth through 2030.

  • Heineken Unveils Resource-efficient Five-year Strategy Amidst Industry Challenges

    Heineken Unveils Resource-efficient Five-year Strategy Amidst Industry Challenges

    Heineken, the Dutch brewing giant, has announced an ambitious five-year strategy that aims at utilizing fewer resources to generate more growth. The strategy will concentrate on specific markets and brands to maximize organic net revenue growth. The company anticipates seeing mid-single-digit growth each year leading up to 2030.

    Changing Course Amid Uncertain Times

    In response to a rapidly evolving global landscape, Heineken is looking to fortify its future operations. The company plans to establish a more robust operating model, optimize efficiency, and enhance its adoption of artificial intelligence. This new direction comes in the wake of a series of challenges for Heineken, including the economic impact of the Covid-19 pandemic, rising inflation, and recent tensions arising from US trade policies.

    At an investor event, CEO Dolf van den Brink admitted that the company’s performance has been inconsistent. He expressed dissatisfaction with the current state of affairs and emphasized the company’s aspiration to improve and grow.

    Refocusing on Key Markets and Brands

    Heineken has identified 17 key markets, including Mexico, Malaysia, Spain, and the UK, where it aims to expand its presence. The company will target these markets for potential acquisitions and will focus on five global brands and 25 strong local labels. The markets, along with brands such as Heineken, Tiger, Amstel, Desperados, and Birra Moretti, will receive enhanced resources.

    Investors have suggested that Heineken has been lagging behind competitors, notably Anheuser-Busch InBev, which is recognized for its efficient operations. While Heineken’s shares have seen a modest increase of around 3% this year, its competitors’ shares have seen more substantial growth.

    The brewing company expects organic operating profit to outpace revenues under its revised strategy. It also anticipates earnings per share to grow commensurately or exceed that rate, and aims for over 90% free-cash conversion. The company’s profits will be bolstered by a pre-existing target of achieving up to 500 million euros (US$583 million) in annual gross savings by 2025.

    Industry-Wide Challenges and Adaptation

    Heineken shares experienced a minor slump recently, dropping almost 2% before recovering slightly. This comes after a warning from the company about a potential decrease in beer sales in 2025, following weak third-quarter sales in Brazil and Europe.

    Broadly, the brewing industry is grappling with challenging economic conditions and weak consumer confidence. Additionally, longer-term issues such as increasing health warnings, emerging competitors, and changing consumer preferences pose significant challenges.

    To adapt to evolving consumer demands, Heineken plans to expand its low- and no-alcohol offerings. The company recognizes that some consumers are reducing alcohol consumption due to health concerns and the rise of weight-loss drugs, and is taking proactive steps to accommodate this trend.

    Questions & Answers

    What is the key focus of Heineken’s new strategy?
    The primary focus of Heineken’s updated strategy is to generate more growth while utilizing fewer resources, focusing on specific brands and markets.

    How does Heineken plan to adapt to changing consumer trends?
    In response to changing consumer preferences, Heineken plans to expand its range of low- and no-alcohol products.

    What are some challenges Heineken anticipates in the brewing industry?
    Heineken expects to grapple with difficult economic conditions, weak consumer confidence, health warnings, and changes in consumer behavior, along with new entrants in the market.

  • Heineken Vietnam, National Traffic Safety Committee renew strategic partnership

    Heineken Vietnam, National Traffic Safety Committee renew strategic partnership

    Heineken Vietnam is continuing its 14-year partnership with the National Traffic Safety Committee for developing a “road safety” culture and inculcating the habit of “When you drink, never drive.”

    The two-year program has trialed activities to reinforce a “road safety” culture and promote healthy drinking and driving habits among government and other employees based on Heineken Vietnam’s Traffic Safety framework.

    The program will offer comprehensive and practical solutions with the sole purpose of safeguarding people against dangerous consumption and behaviors after getting a grasp of the social context and employees’ habits.

    Tran Huu Minh, head of the NTSC office, said: “The company has proactively organized awareness campaigns for state agencies and enterprises to encourage their staff to adopt healthy habits towards responsible consumption for the benefit of personal health and the community.

    “I hope this program becomes an impactful model program to be implemented on a bigger scale in future.”

    The set of traffic safety regulations and the “When you drink, never drive” framework will be trialed at two units: the Ho Chi Minh Public Transport Management Center, and the Vitranimex Transportation and Trading Joint Stock Company.

    After conducting an examination at these two units and evaluating the results, NTSC will establish a set of standards for the application of “When you drink, never drive” at enterprises and government agencies and seek to make these rules widely available in the coming years.

    “Path to moderation and no harmful use” is one of the core features of Heineken Vietnam’s sustainability program “Brewing a better Vietnam,” Tran Minh Triet, the company’s deputy managing director said

    The 2022-2023 project is an opportunity for Heineken to support and disseminate the “Traffic safety – When you drink, never drive” program to state agencies, enterprises and consumers, he added.

    For years Heineken Vietnam has been building a program for traffic safety and a set of traffic safety laws within the company, including a number of activities to enhance employees’ knowledge and driving skills.

    As part of its commitment to the scheme, Heineken Vietnam has deployed a “Safe Pick-Up” program to ensure they get home safely every day.

    Since 2008 Heineken Vietnam has collaborated with NTSC to simultaneously spread the “When you drink, never drive” message throughout Vietnam.

    Lees ook:

  • Heineken drops new sneakers

    Heineken drops new sneakers

    Are you ready to ‘walk on beer’? Because Heineken’s here to ensure that you do just that! The infamous Dutch brewing company recently unveiled Heineken Silver – a new smooth, easy-to-drink beer brewed for a new generation of drinkers. And they decided to kickstart its launch, with a pair of kicks! Heineken collaborated with celebrity sneaker designer Dominic Cambrione, more popularly known as The Shoe Surgeon, to create – the ‘Heinekicks’.

    What are the Heinekicks? Quite simply put, they’re limited edition sneakers FILLED with beer. There are only 32 pairs available in the world, and yes, you heard it right, they actually contain soles filled with the new Heineken Silver. Heineken promises these liquid-filled kicks “will have you Walking on Beer”.

    The Shoe Surgeon maintained the brand’s iconic red, green, and silver colors in the shoes as well. The acclaimed designer has created kicks worn by the likes of LeBron James, DJ Khaled, and Drake.“Partnering with Heineken for their new beer was a fun challenge. We both share a passion for innovation and pushing boundaries and created a design to reflect that,” said The Shoe Surgeon. “The shoe not only embodies the energy of Heineken Silver but literally carries it. I can’t say I’ve ever designed a sneaker that contains actual beer before.’’

    He power-packed the sneakers with a sleek green lenticular upper with silver and red accents. A removable metal bottle opener has been integrated into the tongue of the shoes. This could come pretty handy when it’s time to pop open a cold one!

    Of course, the most fascinating element of the shoes is the transparent soles filled with the golden liquid, which is Heineken Silver. The beer was inserted into the soles using a specialized surgical injection method!

    The one-of-a-kind soles provide the wearer with an extremely smooth walking experience, drawing a smart parallel to the smooth taste of Heineken Silver. These are the first pair of sneakers that allow you to walk on beer and a super genius marketing hack! We can’t wait to see how avid beer lovers react toward Heineken Silver!

  • Heineken Vietnam pays $39.7 mln in back taxes and fines

    Heineken Vietnam pays $39.7 mln in back taxes and fines

    Heineken Vietnam Brewery has paid VND917.2 billion ($39.7 million) in back taxes and fines for a 2018 transaction.

    Singapore-based Heineken Asia Pacific Pte. Ltd. had, at the end of 2018, struck a deal valued at over VND4.8 trillion ($207.7 million) with the Heineken Vietnam Brewery. Under the deal, the Singaporean firm transferred its entire stake in its Vietnamese subsidiary to the latter.

    The tax payable on the deal was VND823 billion ($35.6 million), but Heineken Asia Pacific claimed it was exempt from paying it under the double taxation agreement signed by the governments of Vietnam and Singapore.

    However, the General Department of Taxation ruled that the tax had to be paid because the real estate value in the deal was over 50 percent of the assets involved in the deal.

    The department confirmed that it has received in full the payment of back taxes and fines.

    Another major FDI corporation, Coca-Cola Vietnam, has been ordered to pay VND821.4 billion ($35.4 million) in back taxes and penalties stretching back over nine years.

    The company, which has been suspected of engaging in transfer pricing fraud to evade taxes, has paid VND471 billion ($20.4 million), or 57.3 percent of the amount, at the time of writing.

    Vietnam collected VND18.8 trillion ($813 million) last year in back taxes and fines, according to the General Department of Taxation.

    Lees ook:

  • Heineken no longer a major shareholder of Sabeco

    Heineken no longer a major shareholder of Sabeco

    Dutch brewer Heineken sold over 5 million Sabeco shares Friday, bringing its stake in Vietnam’s biggest brewer Sabeco down to 4.32 percent.

    The shares, equivalent to an approximate 0.81 percent stake, were sold to buyers whose identities have not been disclosed via an agreement, the Ho Chi Minh Stock Exchange (HoSE) reported.

    The sale was worth over VND1.2 trillion ($51.79 million), at VND234,000 ($10.1) per share (ticker: SAB), VND18,000 ($0.78) lower than its stock opening price Friday, according to HoSE.

    On the stock market, the Saigon Beer Alcohol Beverage Corporation’s SAB shares have been falling or stalling for the last 12 consecutive sessions.

    The remaining 4.32 percent stake in the Vietnamese brewer is held by Heineken, its regional subsidiary Heineken Asia Pacific, and related companies.

    Sabeco is owned 53.59 percent by Vietnam Beverage, a subsidiary of Thai beverage company ThaiBev. The Vietnamese government, represented by the Ministry of Industry and Trade, owns a 36 percent stake in the company.

    Thaibev had bought its stake in Sabeco when the government publicly auctioned them in December 2017. At the time, Heineken, who had held shares in Sabeco since 2008, also submitted a bid but lost to Thaibev.

    According to a report by securities firm FPTS Securities, Heineken’s share of the Vietnam beer market at the end of 2018 was 23 percent, second to Sabeco at 40.9 percent.

    In its latest financial report, Sabeco reported revenues of over VND28.3 trillion ($1.22 billion) in nine months, up 10 percent year-on-year. Revenue from beer in the period accounted for 86 percent of total, or VND24.3 trillion ($1.05 billion).

    In the third quarter alone, post-tax profit was highest among all brewers in Vietnam at almost VND1.46 trillion ($63 million), up over 40 percent year-on-year.

    Lees ook:

  • Heineken Malaysia 2018 net profit up 4.6%

    Heineken Malaysia 2018 net profit up 4.6%

    Heineken Malaysia Bhd, which posted a 4.6% jump in its net profit for the financial year ended Dec 31, 2018 (FY18), remains cautious about its outlook given the challenging environment due to intense competition, implementation of the sales & service tax (SST), and the continued presence of contraband beer in the market. In line with rising global commodity prices, the group also expects an increase in cost of operations including raw materials and packaging.

    Finance director Szilard Voros said how the group will perform in FY19 also depend on the market, adding that it will benefit if consumers remain optimistic and if efforts to curb illicit trade are stepped up.

    “But we remain cautious because SST was just introduced in September so that also comes with a lag… we also need to see how things settle down after Chinese New Year and see what is the normalised performance and if there’s a growth continuation,” he told reporters at a media and analyst briefing today after announcing the group’s financial results.

    Managing director Roland Bala (pix) said the external environment remains challenging. Amidst slowing global growth rates, currency volatility and uncertainty in the commodity markets, he said the group will need to adopt a cautious approach in cost management.

    “Moving forward, we will continue to invest in our core brands and leverage on our portfolio. As consumer taste profile changes, we will make bets on brands that we believe will have scale,” he added.

    Heineken’s net profit for the fourth quarter ended Dec 31, 2018 grew 6.8% to RM100 million compared with RM93.64 million in the same quarter last year due to higher revenue as well as efficient and effective management of commercial spend and overheads.

    Group revenue grew 12.3% to RM662.28 million as compared to RM589.96 million in the same quarter in 2017 mainly due to increase in sales volume driven by the flagship Tiger brand.

    For the full year period, net profit grew 4.6% to RM282.2 million from RM270.06 million a year ago, while revenue rose 8.3% to RM2.03 billion from RM1.87 billion.

    It has proposed a final dividend of 54 sen per share for the quarter under review, bringing the full-year dividend payout to 94 sen.

    Lees ook:

    Lees ook:

  • Perfection in a Heineken pour

    Perfection in a Heineken pour

    HEINEKEN Malaysia’s Star Academy has kickstarted the latest edition of its programme to train bartenders to serve the perfect pour based on the five-step Heineken Pouring Ritual.

    The Heineken Star Serve, now in its fifth year, will see Star Academy trainers Jonathan Chong (pix) and Thomas Ling providing professional training to 600 participants across eight cities throughout this month.

    The participants will later be put through rigorous theoretical and practical assessments, not just on Heineken product history and knowledge, but also technical know-how, as well as other areas.

    The top performers will then enter a national finals competition where the winner will represent Malaysia at the Heineken Global Bartender Finals in Amsterdam, the Netherlands.

    In past global competitions, Malaysian finalists have made the country proud.

    Eddy Jay Jaimin was crowned champion in the 2016 Heineken Global Bartender Finals, while Jimmy Goh Teong Hock was the runner-up in 2013.

    The winner this year will be chosen based on his/her skill and knowledge in pouring the perfect pint of premium Heineken draught beer following the five-step Heineken Pouring Ritual of rinse, pour, skim, check and serve:

    Step 1: Rise the glass to make it clean and cold.

    Step 2: Pour with the glass at a 45° angle for a full, satisfying head.

    Step 3: Skim off the foam at a 45° angle to seal the head.

    Step 4: Check that the head sits on the horizontal line of the star.

    Step 5: Serve on a coaster with the logo facing the drinker.

    This golden standard includes ensuring a two-finger foam head to seal in the freshness and full-bodied flavour of the beer.

    But then again, less foam does not mean it’s a bad beer.

    Another key component to a perfect pour is the scientifically-designed glassware, which brings us to the next factor – beer bubbles.

    As one of the most vital constituents of a good pint of beer, the embossed base of the pint glass encourages the best carbonation, making for a long-lasting foam head, which ensures that every sip of beer is as good as its last.

    Lees ook:

    Lees ook:

  • Despite growth, Vietnam’s beer market remains established giants’ playing field

    Despite growth, Vietnam’s beer market remains established giants’ playing field

    Many big companies have failed to tap into Vietnam’s competitive beer market despite steady growth, industry experts said.

    Nguyen Van Viet, chairman of Vietnam Beer, Alcohol, and Beverage Association (VBA), said that only big brands such as Heineken and Sabeco are doing well, while others are struggling.

    Take Sapporo for example, the company has maintained low levels of profit despite growing sales because of high operational and advertising costs, Viet said.

    Other big players have been even less successful. Masan Food, whose products are staples in Vietnamese families, has yet to dominate supermarket shelves with its White Lion premium lager beer four years after its launch.

    Another example would be, local dairy giant Vinamilk and British brewing company SABMiller (now belonging to Anheuser-Busch InBev). The two companies joined forces in 2006 to open a brewing venture. Their product has, however, failed to compete against other established brands and remains largely unknown. Vinamilk withdrew from the venture after just two years.

    However, the market is still considered a promising ones. Vietnam’s beer industry has seen a stable 5 percent annual growth even though world’s average consumption hasn’t budged in the past decade.

    According to Euromonitor’s Southeast Asia beer consumption report, Vietnam will be a noteworthy market in upcoming years given the current momentum.

    The international market research company also called Vietnam as “the next battlefield for brewers.”

    Vietnam consumed more than 4 billion liters of beer in 2017, according to VBA’s report.

    The industry aims to produce 4.1 billion liters of beer in 2020 and 5.5 billion liters in 2035

    Lees ook:

  • Heineken Partners With A Bathing Ape For Its Capsule Collection

    Heineken Partners With A Bathing Ape For Its Capsule Collection

    Hong Kong-owned A Bathing Ape has been chosen by brewing giant Heineken as its partner for this year’s #Heineken100 program, its eighth collaboration with a retail fashion brand.

    The two companies have created a capsule collection of four co-branded fashion items: a hoodie, coach jacket, t-shirt and a six-pack bottle carrier.

    Unlike previous years – when the creations were gifted only to the 100 most influential beer drinks around the globe – this year consumers can buy the merchandise at a one-day only popup in New York. The store will be open in Japanese gastropub Izakaya in Manhattan’s East Village neighborhood in New York on Tuesday (December 12).

    Last year, Heineken collaborated with luggage brand Tumi to create a series of essential travel products. Other previous partners include Public School, Garrett Leight, Union Los Angeles, Parabellum, Mark McNairy, Kith and Neighborhood Japan.

    “The goal of the #Heineken100 program has always been to connect the brand with people who drive culture forward,” said Coltrane Curtis, founder and managing partner of Team Epiphany, the marketing agency behind the initiative. “This year, we listened to the fans. By opening up #Heineken100 to New Yorkers, we’re able to directly engage with consumers in one of the most influential cities in the world.”

    “This year’s #Heineken100 campaign brings together two brands with global ubiquity, whose consumers have a taste for luxury and innovation,” added Raul Esquer Lopez, Heineken USA brand manager. “We’re thrilled to partner with Bape, an iconic brand that shares a history of inventiveness through creating highly-aspirational imports for the man of the world.”

    The half-zip pullover hoodie will sell for US$399, the camo coach jacket for $413, the t-shirt for $112 and the cooler for $115. All feature dual branding.

    Bape is owned by Hong Kong’s I.T. Group.

    Lees ook:

    Lees ook:

  • Heineken expands production, buys into local top brewer in Vietnam

    Heineken expands production, buys into local top brewer in Vietnam

    The beer maker is aggressively pouring money into Vietnam, one of the biggest markets in Asia-Pacific. As Heineken considers Vietnam a vital driver for its business growth in Asia-Pacific, the Dutch beverage giant is trying to grasp more market share.

    Heineken in July took over a facility from rival Carlsberg in the southern port city of Vung Tau in an attempt to boost its brewing capacity to satisfy the thirst of local drinkers who, according to Euromonitor International, are expected to consume more than 4.04 billion liters of beer this year, the most in the region and up from 3.88 billion liters last year.

    The Amsterdam-based company has planned to boost its capacity at the Vung Tau facility to 610 million liters from 50 million liters, the Nikkei Asia reported.

    Heineken, which entered Vietnam in 1991, currently operates in the market through two companies, including wholly-owned Asia Pacific Breweries and Vietnam Brewery, in which Heineken has a 60 percent stake.

    It is now the second biggest brewer in Vietnam controlling 25 percent of the local beer market, after dominant player Sabeco, which has 40 percent of the market.

    Heineken, which positions itself on the market as the brewer of high-end beers, has increased its annual output by 14 percent since 2012, which is more than twice the output growth rate of Sabeco, the Nikkei Asia reported, citing data from local securities company Viet Capital.

    Heineken produced 729 million liters last year, compared to Sabeco’s 1.38 billion liters.

    As part of its expansion plan, Heineken plans to buy into Sabeco as the government is divesting from the top local brewer.

    Heneiken is seen among potential investors keen to aquire more shares in Sabeco, a 90 percent state-owned company due to be listed in Ho Chi Minh City on December 20 at the latest. Heineken is reported to have already owned 5 percent in Sabeco.

    The Vietnamese government on July 20 scrapped a long standing foreign-ownership cap in many listed companies, but the 49 percent limit stays put for Sabeco.

    In the latest privatization push, the government will sell a 53.6 percent stake in Sabeco this year and the remaining in 2017.

  • Idris Jala to become Heineken Malaysia chairman

    Idris Jala to become Heineken Malaysia chairman

    Performance Management and Delivery Unit (Pemandu) chief executive officer Datuk Seri Idris Jala will join Heineken Malaysia Bhd (formerly Guinness Malaysia Bhd) as chairman starting Jan 1, 2017.

    In a filing with Bursa Malaysia, the Selangor-based brewer said Idris would succeed Tan Sri Saw Choo Boon who had decided to retire as chairman on Dec 31.

    At the request of management, Saw has agreed to continue to support the group as advisor of Heineken Malaysia starting Jan 1, 2017.

    Idris, who served as Minister in the Prime Minister’s Department for six years, is the managing director of the Big Fast Results Institute in addition to helming Pemandu.

    “Datuk Seri Idris Jala is a renowned transformation guru in turning around companies’ performance through his big fast results methodology and transformational strategies that are innovative, rigorous and relevant to today’s demands. He has continuously delivered sustainable socio economic reforms which, in 2014, saw Bloomberg place him among the top 10 most influential policy makers in the world,” Heineken Malaysia said.

    Prior to his Government stint, Idris was managing director/CEO at Malaysia Airlines (MAS) for three years. He was brought on board to turn around the airline which was in crisis brought about by a prolonged bout of losses from operational inefficiencies.

    Before that, he spent 23 years at Shell, rising up the ranks to hold senior positions including vice president (Shell Retail International) and vice president (business development consultancy) based in the UK.

    Lees ook:

  • Korean grocery prices among world’s highest

    Korean grocery prices among world’s highest

    A recent report from a Korean consumer protection agency reveals that the prices of imported fruit, wine, beer and Starbucks coffee in Korea are much more expensive than in other countries.

    According to Consumers Korea, the domestic prices of imported grapes, wine, and domestic pork belly were among the highest levels in the world. The prices of groceries in the major cities of 13 countries were compared.

    The report indicated that 800 grams of American grapes cost 7009 won in Korea, which was twice as high as the price in the U.S. (4069 won), and wine was being sold for an average of 38,875 won, which was 71 per cent higher than the price of wine in the Netherlands (22,681 won), which has the fifth-highest wine prices in the world.

    The price for a kilogram of domestic pork belly (27,930 won) was almost twice as high as the comparable price in China (14,679 won), which was the second-highest among the 13 countries compared.

    The cost of coffee at Starbucks (Americano tall size), domestic beef sirloin (one kilogram, steak), imported sirloin (one kilogram, steak), bananas (Philippines, one bunch), American oranges (one), American grapefruit (one), Coca Cola (1.5l), Heineken (330ml), and Miller (355ml) in Korea were the second highest among the 13 countries compared.

    Of note, the price of Heineken in Korea (2016 won) was 2.9 times higher than the price in the Netherlands (729 won), and the price of Miller in Korea (2203 won) was 2.3 times higher than the price in the US. (960 won).

    Officials from Consumers Korea commented that among the 35 products compared across the 13 cities, the Korean grocery prices of 31 products ranked in the top five.

    “Prices of Korean agricultural products were expensive compared to prices in other countries. Since customs tariffs are being lowered due to different free trade agreements, regulations should be established so that the financial benefits of free trade can be passed on to consumers,” said the officials.

    Lees ook: