Further development of the
Heineken brand fits within the corpo
rate strategy and there are plenty of
opportunities in this direction.
Traditionally, Heineken has always
opted for the local approach in Asia,
which means paying attention to local
brands such as Bintang in Indonesia,
Number One in New Caledonia, and
Tiger in Singapore and Malaysia. "In
many countries we have a good
standard beer on the market. The
Heineken brand can book further
growth if we use the big local stand
ard brands as a platform for achieving
the required cost leadership."
Over-estimation
The strong rate of economic
growth in many countries in Asia,
notably in China and Vietnam, makes
the coordinating director optimistic
about future possibilities for
Heineken. But he does not allow his
judgment to be swayed by these pros
pects, as 'there is a risk of over-esti
mation'. "Just look at a country like
Not all of Heineken's activities
in Asia are linked to those of APB.
Heineken also holds majority inter
ests in Multi Bintang (Indonesia)
and in Grande Brasserie de
Nouvelle Calédonie in New Cale
donia. In Japan Heineken has esta
blished a joint venture with Kirin.
Heineken has concluded licensing
agreements with Asia Pacific
Breweries (Singapore), Guinness
Anchor Berhad in Malaysia, with
Kirin in Japan, and with Brasserie
de Tahiti. Heineken also has
substantial export interests in Asia
which are managed from the
regional office in Singapore.
China. In some of the coastal provin
ces the economy is currently boom
ing, growing by some 20 to 25% per
year. At a certain moment they will
have to apply the brakes, because of
the risk of overrheating. It's impossi
ble to guess what will take place after
that." Mr Rijkens admires countries
like Indonesia and Malaysia which
show moderate, yet solid growth
figures. "They are keeping growth
within limits."
A sunny economic future is no
automatic guarantee that a joint
venture will be a success, feels Mr
Bijkens. "The project in Thailand is a
very substantial challenge. A green-
field brewery is being built there
based on the assumption that the
Heineken brand has good opportu
nities in Thailand, even though
Heineken Beer is scarcely obtainable
there at the moment because of
import restrictions."
"Challenges like this are charact
eristic of the spirit that now lives
within Heineken to forge ahead with
creating new business, to take risks
and to ensure that in the year 2000
Heineken will play a leading role in
the Asia Pacific region". Despite the
fact that 1993 was in itself a record
year for Heineken in the region, Mr
Rijkens assures us that the rate of
growth will not slow down in the
forthcoming years. Proof of this state
ment came in April. The Executive
Board announced that over the next
five years APB will set aside 800 mil
lion guilders for further expansion in
the region.
31
THE WORLD OF HEINEKEN
