Heineken
NV
Profile
Heineken is one of the world's largest and
most advanced brewers and the Heineken
brand is the most valuable international
beer brand. Operating in over 170 coun
tries, through its own breweries and
through export and licensing partners,
Heineken has the widest global presence
of all the international brewers. Europe
accounts for over half of Heineken's sales
volume. At the end of 2003, Heineken
owned over 115 breweries in more than 65
countries* and employed 61,271 people.
Origins
Heineken has its roots in Amsterdam,
where Gerard Adriaan Heineken purchas
ed a brewery in 1864. In the ensuing
decades, under the leadership of three
generations 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.
Goal and strategy
Heineken's goal at all times is to defend
and strengthen its leading global market
position and preserve its independence.
Heineken's strategy for attaining this
goal is to:
achieve a level of sales and profitability
which makes it one of the world's largest
and financially best-performing brewing
groups
maintain a strong portfolio of beer
brands, with Heineken as the leading
international premium beer
maintain strong local market positions,
a good sales mix and an efficient cost
structure by combining the sale and
distribution of the international
Heineken premium brand with that of
strong local brands
The full list of breweries
and operating companies can
be found on pages 92-95.
2
fulfil its corporate social responsibility,
particularly with regard to policy on
alcohol abuse, social and environmental
issues.
Shareholders
Heineken seeks to secure long-term profit
growth for its shareholders by expanding
in existing markets and entering new
markets. Heineken's strategy creates add
ed value for shareholders and generates
returns which are above the average for
the brewing sector.
Innovation
Heineken works constantly to meet the
consumer's changing needs and improve
the quality and safety of its processes
and products, its cost structure and its
environmental performance. For a leading
company like Heineken, innovation in
marketing, communication, packaging,
brewing technology and supply chain
management is important, especially in
reinforcing the competitive position
of the international Heineken and Amstel
brands.
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. In virtually
all markets, Heineken is positioned in the
premium segment. Heineken is the largest
beer brand in Europe and Amstel the third
largest. Amstel is generally positioned in
the mid-priced mainstream segment, the
largest segment of the market. The group
has a very limited presence in the low-
priced segment. As well as lagers, our
international and local brands also include
speciality beers, light beers (low-calorie
beers) and alcohol-free beers.
Ownership structure and stock
exchange listing
Heineken Holding N.V. holds 50.005% of
the Heineken N.V. shares. Heineken
Holding N.V. has 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 the strategy. Heineken
Holding N.V. is concerned primarily with
safeguarding the long-term continuity,
independence and stability of Heineken's
activities. The net asset value and dividend
policy of the two companies are identical.
The shares and options on the shares
of both companies are traded on Euronext
Amsterdam.
Distribution
Heineken seeks to achieve comprehensive
coverage in each market, through allian
ces with independent distributors or via its
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.
