3
SPECIAL
RULES FOR
TRADE WITH
NORTHERN
EUROPE
IN BRIEF
Heineken Belgium visits
Bokma in Leeuwarden
Classes in the north
There are few areas in the world where the sale of beer is
bound by such strict and complicated rules as in
Scandinavia. Achat with area marketing manager M.
Jansen and area export manager E. Bakker made it clear
to us that in the North of Europe Heineken has to
contend with highly detailed rules. Rules which stem
from the alcohol discouragement policies of the
governments there. A bird's eye view of the four Nordic
countries (Denmark, Norway, Sweden and Finland).
Norway
Sweden
SINGAPORE
UNITED STATES
UNITED
KINGDOM
Finland
Regular visits are essential for good cooperation. Some months ago the visitors were Mr. K. Sharf (2nd from right), executive vice
president of the KF concern, the parent company of Warby, ana Mr. G. Burman (3rd from left), Warby's managing director.
Pictured with them -from left to right- are: Mr. G.J. Vuyk, regional marketing director Europe, Mr. A. A. Ve/lekoop, director
corporate marketing and licences, Mr. G. van Schaik, vice-chairman of the Heineken Executive Board, and Mr. M. F.J. Jansen,
area marketing manager Europe.
Surely, a country so close to
Holland as Denmark has
quite a lengthy history of
importing Heineken productsNot so
it is only since March last year that
Heineken has been present on the
Danish market and then only on a
modest scale. "Heineken is on sale in
the better-class bars, hotels and
restaurants, but only in bottles, as the
Danish government does not permit
the use of cans. Denmark is a leading
beer-drinking nation; the annual
consumption per head is 135 litres.
And yet imported beers have to make
do with a modest market position in
Denmark", says E. Bakker.
"Heineken focuses its activities
strongly on the foreign tourists.They
are familiar with the quality of
Heineken and they account for a
substantial proportion of our sales in
Denmark."
In Norway Heineken is brewed under
licence by the Nora Group, which
holds about half of the total beer
market with its own brands and with
Heineken.The Nora Group brews
Heineken at Arendal in the south of
Norway. To cut transport costs,
brewing of Heineken was also started
Both in Scandinavia and in Finland beer is subdivided into classes.These
classes are based on the alcohol percentage of each type of beer. But.
these percentages in turn differ in each country. In Swedenfor example
Amstel is sold in classes 2 and 3. Class 2 in Sweden means that the alcohol
percentage is between 1.8 and 2.8 per cent by weight. In Finland, however,
the most popular beer is that in class 3, with an alcohol content equivalent
to between 3 and 3.7 per cent. The subdivision into classes often governs
the permitted degree of distribution. The 'lower' classes of beer, for
instance, are allowed to be sold in supermarkets. And beers with a higher
alcohol percentage are only obtainable in the state monopoly stores.The
classification is also used as a basis for calculating the excise duty. Ahigher
alcohol percentage automatically means higher duty.
six months ago in Oslo, the area which
has the main concentration of beer
consumption. In Norway there is a
ban on advertising beverages in the
alcohol category in which Heineken is
classified. Except for drinks in class I
(low-alcohol beer), no consumer
advertising is allowed at all. One of
the few forms of advertising that
Heineken is then left with is that
offered by in-store displays.
Heineken is represented in Sweden by
Following the introduction of shares
in Malayan Breweries Ftd. by both
Heineken N. V. and Frazer Neave
Ltd., a separate holding company
has been formed in which both
partners have a 50% stake.The new
holding company has given further
structure to the joint venture with
Frazer Neave Ltd. which has
already existed for dozens of years.
The present financial interest of
Heineken N.V. in Malayan
Breweries Ltd. in Singapore
(42.2%) will not change because of
the establishment of this new
holding company.
In November last year Amstel Light
was again the beer that was served
during the Virginia Slims women's
tennis championships.The
tournament was held in Madison
Square Garden in New York and the
contestants included Martina
Navratilova (who easily beat West
Germany's Steffi Graf in the final)
and Hana Mandlikova. Amstel Light
is brewed in the Amstel Breweries in
Canada and is imported into the
United States by Van Munching
Co. Inc.
The Executive Board announced on
1st December 1986 that its long
standing relationship with
Whitbread and Company PLC in
London had been rearranged as a
result of changed market
circumstances. Whitbread produces
and sells Heineken lager under
licence in the United Kingdom.
Under this new arrangement
Heineken will thus acquire an
interest of about 1% in Whitbread's
capital. Mr. A.H. Heineken will join
the Whitbread Board of Directors as
a Non-Executive Director. The
importance that both companies
attach to effective, long-term co
operation on the U.K. market is
further underlined by this
rearrangement.
Amstel beer, which is brewed under
licence by the Warby Brewery near
Stockholm, and by Heineken beer,
which is imported. "In Sweden, too,
advertising for alcoholic drinks is
subject to stringent regulations. Such
advertising is banned on television or
radio, whilst only limited advertising
is allowed in the press.The
advertisement must refer entirely to
the product itself; for example, we're
not allowed to use illustrations of
people drinking beer", says M.
JansenUnlike DenmarkSweden is a
'country of cans'. Some 90% of the
total volume of Amstel is sold in cans.
The tremendous popularity of the can
has led to the introduction of a deposit
money system. All Swedish
supermarkets have special can-
crushing machines. If you throw in a
can, you get a ticket which you can
cash in at the check-out desk.The
brewery pulverises the cans and sends
the material back to the manufacturer
for recycling into new cans.
Sweden's eastern neighbour, Finland,
is the latest member in the Heineken
export family. For some months now,
beer has been exported from Holland
to the Finns - and with great success.
Just like in Sweden and Norway, the
government in Finland also exercises
considerable control over the
production, import and sale of
alcoholic beverages.The Finnish
state-owned company Oy Alko AB
recently decided to give the consumer
more choice in the area of beer. Not so
long ago only two imported beer
brands were available in Finland. Oy
Alko AB decided to allow four extra
foreign beers on to the Finnish market
and Heineken was one of them.
Heineken sent three containers of
beer to Finland and very quickly
received an order for moreobviously,
the taste went down well. Heineken is
now sold in Finland in the state liquor
stores and bars, hotels and
restaurants. Finland also has
restrictions on the advertising of
alcoholic drinks. Advertisements are
not permitted in public newspapers or
on television or radio. But trade
journals are allowed to carry
Heineken advertisements. Publicity is
also permitted at the points of sale.
The personnel of Heineken Belgium paid a two-day visit in September last year
to the Bokma distillery in Leeuwarden (Holland).The programme for this
informal visit included a guided tour of the distillery, a sightseeing trip around
Leeuwarden, a visit to the Princessehof Museum and a boat trip across the
Frisian lakes (see picture)During the dinner awards were made to a number of
employees of Heineken Belgium.The Heineken Belgium personnel were given
a warm welcome by director P. Bokma.
ilïiü
