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

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World of Heineken | 1998 | | pagina 3