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Summer 2007
All this bodes well for Heineken, a brand which is perfectly at home with the
aspirational ambitions of the region's rising upper and middle classes.
Heineken's current presence in northern Africa and Middle-Eastern markets
is impressive. The company claims a 70 per cent share of the imported
segment in Jordan, and 90 per cent of the total share including the locally-
brewed Amstel brand. In Egypt, Heineken has a market share of 96 per cent.
To meet growing demand and invest further in the long-term potential,
Heineken has increased its stake in a number of breweries in Israel,
Lebanon, Egypt and most recently, Tunisia, where a new greenfield brewery
is expected to be operational by early 2008.
Heineken's ambition in the region is therefore not only to build on its
position, but also to grow the beer market as a whole. "Heineken has always
been a very creative company and committed to growing the entire beer
sector. If the whole beer segment grows, the company wins," says Paul
Hanna, owner and CEO of Albina Hanna, who have been distributing
Heineken in Jordan and Iraq since the 1930s. "It is a good strategy. Create
more opportunities for drinking beer and make the brand more accessible
and hipper for consumers."
But all of this must be done in a responsible way, with respect for the local
culture. In nearly all Middle Eastern nations, a uniform ban on alcoholic
advertising applies, with branding excluded from television and newspapers
as well as in public on posters or billboards. Heineken maintains a strict
policy of compliance with all local laws and regulations in the countries in
which it operates and is committed to the responsible marketing of all of its
brands. "In this regard, we have to be creative," says Hanna. "Not only in the
way we advertise, but also in how we advertise. We tend to invest more in
the outlets that serve alcohol and dress up the beer section of supermarkets
to lure consumers away from the spirit and wine section. We also work on
distinctive packaging ideas. In hotels and restaurants, we sponsor bands
and introduce nifty marketing products such as the Sub Zero fridge."
In light of the region's steady population increase, the rising level of tourism
and the current market for oil, the Middle East's growth as an economic
hotspot is only set to continue. "I have a very positive outlook," Hanna
concludes. "I'm quite optimistic. There is a lot of outside investment -
billions of dollars in hotels, luxury apartments and educational facilities.
This will attract a lot of Heineken drinkers."
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