New sources
Ethnic
Last feat
THE WORLD OF HEINEKEN
For Frans van der Minne, the road in the US turned out to be a bumpy one.
But when he first arrived at the Fleineken USA head office in White Plains,
just north of New York, everything seemed to be smooth sailing. "When I
came to the USA in 2000, the beer market was still booming and the import
segment in particular was showing double-digit growth. But even in that
year we could already see some early signs that growth was slowing down.
In 2001 we saw that development continue, but the big blow came after
9/11 in 2002. That event made a big impression on everyone in the US.
People who had always felt unassailable and safe realised all of a sudden
that the fairytale was over. The dramatic events of 9/11 had a major effect
on consumer behaviour. The resultant loss of spirit and the overall sense of
uncertainty had a negative effect on the economy and of course on the
beer market as well." In 2002 and 2003, the total beer market hardly grew
and growth in the import segment was reduced to 2%. For 2005 Frans van
der Minne indicates that the total market will remain tough and that the
import segment will remain flat.
It was obvious that Heineken USA could not afford to sit back and count its
blessings. In order to grow further, the organisation needed to change, as
did its approach to the market. Using the expertise he had built during a
decades-long career in export, Frans van der Minne decided to
decentralise the organisational structure. Regional offices in Atlanta,
Chicago, Los Angeles and New York were given greater autonomy to bring
the company closer to the market. "In the past we were strictly
geographically oriented. Looking for new sources of growth, we decided to
combine the geographical orientation with the development of sales
specialists, who focus on one specific distribution channel. That change in
the organisation has helped us a lot in recent years," says Van der Minne.
The second change in the market approach is the use of ethnic
marketing. The three main ethnic groups in the USA (Caucasians, African-
Americans and Hispanics) are so big that according to Van der Minne, you
need separate ways of communicating your brand values. "We used to
communicate Heineken as a beer for special occasions. Now we say that
Heineken makes occasions special. These occasions are different for each
target group."
A new organisation and a new market approach were not enough for Frans
van der Minne. In order to fulfil the growth ambition, it was decided to
extend the brand portfolio to include a wide range of Mexican brands. The
Spanish-speaking population in the US is growing much faster than other
ethnic groups. Especially the people from Mexico stick to their traditional
consumption patterns, including a preferred taste for easy-to-drink beers.
"We wanted to become a dominant player in that segment, but we knew
that we could not reach that goal with the Heineken brand alone. We are
now pleased to have an import and distribution agreement for Mexican
brands."
Another segment of the beer market in which Heineken USA wants a
stronger position is the light segment. Surprisingly enough, the light beer
segment has not suffered from the weak economy. Although the market as
a whole is declining, the light segment is still growing and Van der Minne
predicts that light beers could eventually account for up to sixty per cent
of the total volume in the US. It is clear that Heineken wants a piece of that
action. It is already doing well with Amstel Light. Frans van der Minne:
"Amstel Light is a success story in itself. But, as everyone will admit, the
strength of the Heineken brand is bigger than that of Amstel. In the USA,
for every can or bottle of Amstel we sell six Heineken. We did extensive
research and decided that the time was right to launch a Heineken
Premium Light in the USA."
Since Heineken Premium Light (3.5% alcohol by volume and 99 calories)
did not exist, the brewers at Heineken in Holland had to stretch their
brewing skills to the limit to come up with a light beer that meets the same
high quality that the consumer expects of regular Heineken. They did a
fantastic job, claims Van der Minne. "They have developed an easily
drinkable light beer, yet one that has that distinct Heineken taste. It is a
smooth beer with the Heineken signature. We have extensively tested the
beer in several markets in the USA and we told the consumers beforehand
that they would be testing a Heineken Premium Light. The results of the
taste tests prove that we have managed to exceed the high expectations of
the consumers." As from January 1, 2006, Heineken Premium Light will be
rolled out, with nation-wide distribution being planned before May 1.
Frans van der Minne will be closely monitoring the roll-out, even when he is
back in Holland. Preparing for the introduction will be his last feat in the
US, before returning to Amsterdam to take up the post of Group Human
Resources Director at Heineken head office. He is looking forward to his
new life. "Those years in the US were sometimes tough for me and my
family. It's a challenging job with a lot of travelling. Therefore the fact that
my next and probably last career step brings me back to Holland is a
logical one. It gives me the opportunity to invest more time in my family."
Van der Minne admits that this career step is quite different, when
compared to his previous, sales-oriented jobs within Heineken. "That's true,
but the new job has got everything to do with people and that is what I
wanted. I have the feeling that in my new job I will still be able to
contribute to the company, for instance by identifying high potentials
within the company, keeping them on board and educating them to
appreciate the Heineken culture and to live the Heineken values: passion,
respect, enjoyment and performance."
"I know it is a cliché but Human Resources is all about getting the right
people in the right place at the right time. That may sound simple but it is
in fact quite complicated. Of course, the search for talent is above all a
local activity, but it is always possible to search together for a common
ground and to develop a profile of the type of people you want to reach."
According to Van der Minne, a big part of that profile should be the
social aspect. "In our business the most successful commercial manager is
the person who loves working with people. It's got everything to do with our
product. A product that brings people together and helps to create a great
atmosphere. People who work with Heineken should endorse that feeling."
PAGE 8
