A Brief History of Heineken – Company Analysis

A Brief History of Heineken Company Analysis Heineken is one of the global leading brewers. The company is headquartered in Amsterdam, the Netherlands, and spreads its business all over the world. In this report, we have taken a deep look into the Heineken Company. We will generally display the company portfolio, and then followed by the company’s past 5 years performance. Afterwards, the report will focus on Heineken’s international marketing activities with detailed explanations of its international marketing strategies. Ultimately, the report will extend to discuss miscellaneous topics of Heineken Company, and ends up with an exhaustive conclusion. Introduction Heineken is one of the world’s biggest brewers and is committed to remaining strong and independent. The brand is named after the founder’s name – Heineken -can be found all around the world. Heineken has become one of the most valuable international premium beer brand since last century and it is still growing stronger. Heineken is also one of the experts of beer brewing and has built quite a number of specialty beers around the globe. In addition to the Heineken brand, there are more than 170 specialty beers which meet a variety of consumers’ needs from every corner of the world. The famous brands include AmstelÂÂ ®, Europe’s third-largest selling beer, CruzcampoÂÂ ®, TigerÂÂ ®, ZywiecÂÂ ®, Birra MorettiÂÂ ®, OchotaÂÂ ®, Murphy’sÂÂ ® and StarÂÂ ®. Heineken has wide international presence through a global network of distributors and breweries. Heineken owns and manages one of the world’s leading portfolios of beer brands and is one of the world’s leading brewers in terms of sales volume and profitability. History The Heineken story began more than 140 years ago in 1864 when Gerard Adriaan Heineken acquired a small brewery in the heart of Amsterdam. Since then, four generations of the Heineken family have expanded the Heineken brand and the Company throughout Europe and the rest of the world. Employees In 2007, the average number of employees employed was 54,004 170 brands Heineken’s leading brand portfolio includes more than 170 international premium, regional, local and specialty beers. Our principal brands are HeinekenÂÂ ® and AmstelÂÂ ®. We continually seek to reinforce our brands through innovations in production, marketing and packaging. 139.2 million hl The Heineken brand is available in almost every country on the planet. We own more than 119 breweries in more than 65 countries brewing a Group beer volume of 139.2 million hectolitres. Segments Heineken applies typical Global Area Structure to their organizational strategy. Global area structure is an organizational arrangement in which primary operational responsibility is delegated to area managers, each of whom is responsible for a specific geographic region. (International Business, 5th edition, Rugman & Collinson). Heineken distinguish es the following geographical segments: Western Europe Central and Eastern Europe The Americas Africa and the Middle East Asia Pacific Head Office/eliminations. Segment information is presented only in respect of geographical segments consistent with Heineken’s management and internal reporting structure. Heineken runs its business in five regions, which is in charge of regional presidents. Regional subsidiaries, which remain high responsiveness to the group departments,are responsible for management, risk assessment and operation efficiency. The distribution models of Heineken’s is of a big variety. Goods are delivered in multiple ways in every country, depending on the countries’ conditions, usually direct to the wholesalers or via third parties. Hence, distributions diverse. The various distribution models are taken in charge by regional subsidiaries as well. In such a circumstance, no secondary segment information is in hand.