Kalik gives Bahamian
feeling of pride
Heineken and Bols join
forces in Benelux
Confidence
New beer for Commonwealth Brewery
The Commonwealth Brewery on the Bahamas (almost forty
per cent Heineken-owned) launched a new beer at the beginning
of November. Called Kalik (with the stress on the final syllable)
it is the country's very first local beer brand. The Bahamian can
therefore drink his own beer and, to judge by the sales results
over the past couple of months, he is really proud of the fact.
Junkanoo
Recently it was announced that Heineken NV is to combine a
part of its distilled products operations with those of NV
Koninklijke Distilleerderijen Erven Lucas Bols. The intention is
that the Dutch Spirits and Wines Group (GWN, a Heineken sub
sidiary) will set up a new company together with Bols Neder
land in which both will have a 50% participation. The new com
pany will have the Benelux countries as its field of operation
and will have a market share of around 40%. Through this com
bining of forces Heineken and Bols can respond better to the dis
tilled products market which is currently under pressure.
Advantages
Range
HEINEKEN INTERNATIONAL MAGAZINE NO. 18
PAGE 3
beer (Guinness Stout) was bottled
eighteen months later. Two months
later that was followed by Heineken
beer, which is very popular particu
larly with tourists. In September
1987 Vitamalt was introduced, a
non-alcoholic, sweet brown malt
beverage with many nutrients and
vitamins.
The management of the Com
monwealth Brewery sees the launch
The brewery on the Bahamas has
not been in production for all that
long. The first foundation stone was
laid in September 1985 and the first
as a major milestone in the brew
ery's development. However, a lot
still had to be done before the local
beer could be introduced. "We did a
great deal to capture local attention
for our brewery and our products.
During construction and during the
product launches we broadcast short
films on TV informing the popula
tion about the building work and our
further activities. Those films help
ed us create a feeling of confidence
amongst the population. They have
gained confidence about the quality
of a local product", says Johan
Doyer. There is no better proof of
that confidence than the sales fig
ures and the management, too, has
every confidence in a bright future
for Kalik.
starts on Christmas Eve with a big
procession through the main street
of Nassau, the capital of the
Bahamas. The procession consists
of junkanoo groups from the various
districts. Each group tries to put on
the best show during the procession.
This is done by dressing up in cos
tumes made of vast quantities of
crepe paper, by dancing and making
music. A jury judges each group on
the basis of these criteria. And it was
that music which provided the idea
for a name for the beer: the drum,
flute and cowbell are the most
important instruments in the Jun
kanoo. The music is not written
down; someone has to tell the musi
cians what to play. The combination
of drum and cowbell, for instance, is
known as "boom-kalik, boom-
kalik".
The cowbell has not only been
used as the name for the new beer;
this typical Bahamian instrument
also forms the basis for the picture
on the label.
Kalik is packed in a transparent bottle. On the Bahamas they usually drink
their beer straight from the bottle. As the Bahamian wants to see what he's
drinkingCommonwealth Brewery opted for this form of packaging.
On the Bahamas (700 islands
with a total population of 250,000)
mainly European beers are drank.
These are preferred because the beer
is more full-bodied, contains more
hops and has a more bitter taste. The
recipe for Kalik is closely related to
the recipes of European beers.
No wonder, then, that
Kalik has
beer before he drinks it. The Baha
mian doesn't do that, so we have to
show him what the beer looks like in
some other way", explains Johan
Doyer, marketing manager of the
Commonwealth Brewery.
With the launch of Kalik the brew
ery is responding to the Bahamian's
growing sense of pride in his home
country. Kalik supports the Baha-
Commonwealth Brewery studied the carnival world to find a brand name for
its local beer. The sound representing the cowbell - one of the most important
attributes during carnival on the Bahamas - eventually became the name of
the new beer: Kalik.
been well received by the local
population.
Kalik is appreciated not only for
its taste but also for its pack. The
Bahamian nearly always drinks his
beer straight from the bottle and he
likes to see what he's drinking. That
was the reason why Commonwealth
Brewery opted to use clear, transpar
ent glass for the bottles. "In other
countries beer is poured into a glass
so that the consumer can see the
mian's feeling that high-quality
products can also be made on his
home soil. It is no coincidence that
the marketing department, when
looking for a suitable name for the
new beer, made an in-depth study of
the country's culture.
They soon came across the Jun
kanoo, a festival that is celebrated
around Christmas and the New Year
and was intended centuries ago as a
feast for the slaves. The Junkanoo
A number of factors have led to
this form of cooperation. Several
manufacturers of international spir
its brands in other countries have
joined forces over the past few years,
with the result that toreign suppliers
have increasingly started to operate
more frequently as independent
businesses on the Dutch market, for
instance by acquiring existing local
companies. In the past foreign
brands of distilled products were
marketed almost exclusively via
local agents.
The second factor that has led to
cooperation between Heineken and
Bols is the contraction of the distill
ed products market in the Nether
lands. Whereas in 1975, for in
stance, ten litres of spirits were still
drank per year per head of the popu
lation, this had fallen toonly an esti
mated six litres in 1988. On top of
this, today's consumer wants in
creasingly more variety in products
and new drinks combinations. The
discouragement policy applied by
the Dutch government as regards
alcohol consumption also played a
role in the decision for Heineken and
Bols to cooperate.
Both strategically and economi
cally, Heineken and Bols can see
great advantages and opportunities
as a result of the cooperation. The
combination will provide a broader
base to support the overhead costs
involved in the branded product mar
keting operations of Bols and
GWN. A relative decline in the costs
compared to the sales level will
improve the quality of the business
operation. In addition, better pos
sibilities will be created for counter
ing international competition thanks
to greater efficiency in conducting
the commercial activities. The new
company can also become an attrac
tive agent for foreign distillers who
are having a strategic rethink about
their position on the Benelux market.
Thanks to the broad base of the
new company it will be possible
over the longer term to initiate struc
tural modernisation through invest
ments in market innovation, product
innovation and new distribution con
cepts. The expertise of both com
panies in the areas of production,
marketing and sales of distilled prod
ucts can be developed more strongly
through management development.
The new company will have a
market share of about 40%, which is
an adequate basis for a positive con
tribution to the yield position of the
overall sector. Moreover, allowance
will be made for the interests of the
wholesale trade and the licensed vic
tualling sector which are likewise
under pressure.
The range of the new company
does not differ much from the
brands currently marketed by Bols
and GWN. No major changes in the
product mix are expected over the
short term.
Integration of GWN and Bols
means that employees will transfer
to the service of the new company.
The way in which, the speed at
which and the conditions under
which this will have to take place are
subjects for discussion with the
works councils and the relevant
trade unions. Unfortunately, it will
not be possible to avoid job losses.
How many will be involved was not
yet known when this issue went to
press.
