General review
Brand policy The success of the Heineken Group is based on strong beer brands. Heineken, the company's flag
ship brand, occupies a leading position internationally in the premium segment. Amstel, which is
positioned in the mainstream segment, is the company's second international beer brand. The
Heineken brand is strong and dynamic, and therefore is able to capture a position in a beer market
based on its own strength. The strength of the brand is increased if Heineken is added to a portfolio
containing local or regional brands. For this reason we participate in many countries in local com
panies which not only have good distribution networks and breweries with an efficient cost struc
ture, but also have good market positions and strong local brands. Examples include Moretti in Italy
and Cruzcampo in Spain. Combining strong local positions and brands with the marketing and sales
of the international premium brand Heineken is our key competence in the beer industry. This com
bination produces above-average returns and creates added value for our shareholders.
Heineken
The Heineken brand is the world's most international brand, a position that was reinforced in the
year 2000 once again. Sales of Heineken beer increased by 5.9% from 20.4 million hectolitres to
21.6 million hectolitres. A greater, targeted marketing drive and an expansion of distribution con
tributed to an enhancement of consumer preference. As a result, the Heineken brand grew further
in strength.
Adequate marketing information is indispensable for a good brand strategy and targeted brand
development. Within our Group, better and better tools are becoming available for mapping mar
kets and brands and systematically developing them. This enables us to utilise to the full and
expand both the growth potential of the Heineken brand and of our portfolio with Amstel and local
brands.
The strategy for the Heineken brand is decided in broad outline at the central level and is imple
mented at the local and regional level by our operating companies. All marketing communication
activities for Heineken are based on the fixed core values of the brand: passion for quality, green,
worldly wise and respect. This allows marketing activities that have been developed centrally or
elsewhere in the world to be used throughout the Group. An international brand strategy also
makes economies of scale possible which are unattainable for local brands, e.g. sponsoring of
events at the global level, advertising and promotional campaigns, that can be used internationally
and innovative packagings.
In 2000 a large number of new television commercials and two new international print cam
paigns were developed centrally. We also supported the Heineken brand with world-wide promo
tional activities under the slogan Collective Experiences. These promotions were based on mo
ments experienced by our consumers world-wide as being special, e.g. proposing a toast during the
Christmas season and toasting the New Year. We used this to the full extent via television commer
cials, special activities on the Internet, and on the shop floor by promoting a unique three-litre
Heineken magnum bottle and a shaped can. Relevant and unique packagings appeal to the con
sumer, increase the dynamism of the Heineken brand and contribute to the attraction, and in some
cases improve the availability of our brand.
Sponsoring is an important and integral part of our communications policy to stress brand aware
ness and the core values of the Heineken brand. To this end Heineken sponsors a large number
of events, focusing particularly on tennis, rugby and music. In the field of tennis we continued our
successful sponsorships of the Australian Open, the US Open and the Davis Cup. These events
attract great interest internationally and afford Heineken a good position for sponsoring various
tennis events bearing the Heineken name in the Asia Pacific region. Examples are the Heineken
Open in Shanghai and Auckland, and the Heineken Challenger Tournament in Vietnam.
HEINEKEN N.V. ANNUAL REPORT 2000
17