HEINEKEN DUTY FREE KEEPS
CLOSE WATCH ON MARKET
Fast-moving developments
in a turbulent segment
Only very few segments in
the export trade have
experienced as many
changes in recent years
as the duty free segment.
That's the view of René
Kruijt, head of Heineken
Export Duty Free. We talked
with him about develop
ments in the world of duty
free and about what his
department has done to
keep pace with those fast-
moving developments.
"Ship chandling, or dealing in sup
plies for ships, is a form of trading
that is so traditional that you'd think
it would go on for ever. But ap
pearances are deceptive. In the duty
free segment supplies to ships no
longer hold a leading position.
The reason: the major changes that
have taken place in the shipping
industry. René Kruijt explains why
cargo shipping now offers fewer
opportunities for sales of Heineken
Beer.
Ships have got bigger and bigger.
Automatically that means there are
fewer ships sailing around the
world's oceans. Besides, automation
has brought an enormous drop in the
number of crew members. Of the
small group of people who work on
board modern vessels, some are
Muslims from countries like
Indonesia. Because of their religious
beliefs some do not drink alcohol."
In addition, restrictions on alcohol
consumption on board ship have
also been imposed by shipowners.
Especially the disaster with the
Exxon Valdez off the coast of Alaska
(the vessel's captain had drunk too
much) led to the decision by some
shipping industry operators to
introduce a blanket ban on the drink
ing of alcohol on board their ships.
All these factors have resulted in
ship chandling becoming a less
prominent activity for Heineken
Duty Free. "Our customer base has
been halved, partly because of bank
ruptcies, but also as a result of
mergers and acquisitions. At the
moment 20% of the ship chandlers
account for around 80% of our vol
ume. We therefore aim to focus on
partnerships with the leading ship
chandlers."
FERRIES
However, the gradual decline in
sales in cargo shipping does not
mean that the entire duty free opera
tion is under pressure. According to
Mr Kruijt, sufficient opportunities
are still available, for example on