Profile
Heineken has the widest global presence of all the inter
national brewers, operating in over 170 countries* and
employing 48,237 people around the world. With total sales
of 108.9 million hectolitres in 2002, Heineken is also among
the largest. Beer is produced at over 110 breweries in more
than 60 countries and by other brewers under licence.
Heineken also has a strong export business.
Europe accounts for over half of the sales volume.
Roots, aims and strategy
Heineken has its roots in Amsterdam, where Gerard
Adriaan Heineken purchased a brewery in 1864. In the
ensuing decades, under the leadership of three genera
tions of the Heineken family and pursuing a policy of
measured expansion and consistent brand development,
Heineken has grown into one of the world's leading
brewing groups. Core values within the company include
respect, enjoyment and a passion for quality.
Heineken aims to defend and strengthen its global
market position and preserve its independence by retain
ing its place among the largest brewing groups in the world
in terms of beer sales and profitability, based on a portfolio
of strong brands with Heineken as the leading international
premium beer.
In many countries Heineken has secured strong market
positions and an efficient cost structure by combining
the production, marketing and sale of the international
Heineken premium brand with that of a selection of promi
nent local brands. This generates above-average returns
and creates added value for our shareholders. Heineken
seeks long-term profit growth by expanding in existing
markets and entering new markets. Heineken attaches
great importance to having a responsible policy on alcohol
abuse and good social and environmental policies.
Brands
Heineken has built its strong international and local market
positions by developing and regularly updating its cohesive
portfolio of strong brands which offer high added value for
its customers and consumers.
The group's principal international brands are Heineken
and Amstel. Heineken has the widest global presence
of any international beer brand and is the leading brand in
Europe. In virtually all markets, the Heineken brand's
quality and image mean that it can be positioned in the
premium segment. Amstel, the second largest beer brand
in Europe, is generally positioned in the mid-priced
mainstream segment, the largest segment of the market.
The Group's international brands are supplemented and
supported by national and regional brands and a portfolio
of speciality beers (which differ from lager in flavour, colour
or brewing method), light beers (low-calorie beers) and
alcohol-free beers. Heineken has a very limited presence
in the low-priced segment.
Distribution
Heineken seeks to achieve comprehensive coverage in
each market, through alliances with independent distrib
utors or via our own beverage wholesalers. Heineken
owns numerous wholesalers in Europe which, in addition
to beer, also supply a supporting range of soft drinks,
wines and spirits to the on-trade. Some of the soft drinks
are produced by Heineken.
Research and development
Innovation is very important to a leading company like
Heineken, especially in reinforcing the competitive position
of the international Heineken and Amstel brands. In pursuit
of its commitment to quality, lower cost, greater safety
and lower environmental impact, Heineken works hard to
improve all the technical processes involved in brewing,
packaging and supply chain management. Work in these
areas is coordinated by the Group's research and develop
ment centre in the Netherlands, which makes its services
available to group companies and associated breweries
all over the world.
Ownership structure and stock exchange listing
Heineken Holding N.V. holds 50.005% of the Heineken N.V.
shares. Heineken Holding N.V. engages in no operational
activities: these are carried on by Heineken N.V. and
its related companies. Heineken N.V. is responsible for the
development and implementation of strategy. Heineken
Holding N.V. is concerned primarily with safeguarding
the long-term continuity, independence and stability of
Heineken's activities. The net asset values of both shares
and the dividend policies of both companies are identical.
Both shares are traded on Euronext Amsterdam, as are
options on the shares.
The full list of breweries
and operating companies can
be found on pages 76-79.