THE HEINEKEN COM PA NY
TOWARDS SUSTAINABILITY
1.1 Profile
Selling its products in over 170 countries, Heineken
is one of the largest brewery groups in the world.
Its position is the product of almost a century and a
half of solid performance, measured expansion and
consistent brand development. Since 1864, when
Gerard Adriaan Heineken bought a brewery in
Amsterdam, the company has grown under the
leadership of three generations of the Heineken
family into an international group with 115 breweries
in 65 countries, as well as a strong export and licens
ing business and several maltings and soft-drink
plants. Almost 110 million hectolitres of beer were
brewed in 2003, over half of which was sold in
Europe. Heineken employs over 60,000 people
around the world. Its operating profit in 2003 was
€1.2 billion, on net turnover of almost €9.3 billion.
Structure of the Heineken group
Heineken N.V. shares are listed on the Euronext
Amsterdam stock exchange. A 50.005 per cent inter
est in Heineken N.V. is held by Heineken Holding N.V.,
which is also listed on Euronext Amsterdam. L'Arche
Holding S.A., a Swiss company owned by the
Heineken family, in turn holds a 50.005 per cent
interest in Heineken Holding N.V.
Standing at the head of the Heineken group of
companies, Heineken Holding N.V. is not an ordinary
holding company. Since its formation in 1952,
Heineken Holding N.V.'s object pursuant to its Articles
of Association has been to manage or supervise the
management of the group and to provide services for
Heineken N.V. The function which Heineken Holding
N.V. has performed for the group since 1952 has
been to promote its continuity, independence and
stability and create conditions for controlled, steady
growth of the group's activities. This has allowed
Heineken N.V. consistently to pursue a long-term
policy which serves the interests of the entire group,
its shareholders, employees and other stakeholders.
Within the Heineken group of companies, the
primary duties of Heineken N.V.'s Executive Board are
to initiate and implement corporate strategy and to
manage Heineken N.V. and its related companies.
It is supervised in the performance of its tasks by
Heineken N.V.'s Supervisory Board.
Goal and strategy
Heineken's goal at all times is to defend and strength
en its leading global market position and preserve its
independence. Corporate strategy therefore seeks to
achieve a level of sales and profitability, which makes
Heineken not only one of the world's largest, but also
one of the financially best-performing brewing
groups. The success of this strategy requires
Heineken to fulfil its corporate social responsibilities
particularly with regard to alcohol policy, social
policy and environmental issues.
Brands
Our company's principal international brands are
Heineken and Amstel. Heineken has the widest global
presence of any international beer brand and is the
largest beer brand in Europe. In virtually all markets,
Heineken is positioned in the premium segment.
Amstel, the third largest beer brand in Europe, is
generally positioned at the upper end of the mid-
priced mainstream segment, which forms a large
proportion of the market. The international brands
are supplemented and supported by local brands and
a range of speciality beers, light beers and alcohol-
free beers. The company has a very limited presence
in the low-priced segment.
The objective of our brand strategy is to establish a
full portfolio of beer brands in all the markets in
which we operate, with Heineken as a premium
brand. We aim to secure good market positions, with
a balanced sales mix and an efficient cost structure,
HEINEKEN N.V. SUSTAINABILITY REPORT 2002-2003
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