Alchol for Dummies

Waking Up Heineken

Heineken goes more than 400 years. They are the world’s number 3 brewer, with $11
billion in sales yearly. Heineken is the closest there is to a global beer brand. They control 7%
of the global market share. The problem is that the $367 billion world beer market is changing.
Beer consumption is down in the United States and Europe, which accounts for 2/3 of their
profits. The beer marketplace is becoming more crowded with new brands, but the number of
players is shrinking. Heineken was one of the first European brewers to recognize the value of
cross-border deals, but is now facing the risk of falling behind more aggressive rivals. Because
of this, there is an air of change at Heineken.
This year will break a six year double digit growth for Heineken. The reasons for this
are a weak global economy, SARS, a rainy summer, and a strong Euro compared to the US
dollar. They will barely match last year’s net profit of $900 million on...