BEER
In a region that has seen massive social, political, and demographic
shifts over the past three decades, Singapore-based Heineken Far
East will celebrate its 30th anniversary in 2009.
CAN
TRAVEL
"Fortuitously, we were in the right place
at the right time," he says, "During the
late 1970s and early 1980s, opportunities
abounded in the region, but each presented
its own particular challenges. Vietnam, for
example, was keen to acquire international
consumer goods, but wished to trade on a
barter basis for their abundant commodities
such as rice and coffee."
Today, to use Vietnam as a prime example,
Heineken® is perceived by business and the
consumer as one of the leading international
brands, along with Coca Cola and Nokia.
"The historical presence of Americans in
the area also fuelled this demand," says
Wilson. "Essentially, we have represented the
pioneering spirit, planting the Heineken flag
in new Asia Pacific markets."
Wilson has seen consumer preferences
change and evolve over the years, as
access to international brands became
more widespread. "Heineken® has always
been seen as a very European brand with
a higher degree of bitterness in its flavour
than the local Asian brands. Traditionally in
Asia, many people drink their beer with ice.
Initially, this presented us with a challenge
because the addition of ice diminished some
of the bitterness of a 'full-blooded European
Beer' that was the key differentiator in the
market. In the longer term, however, the
bitterness itself became less important and
the consumer started to look for the brand
itself as brand loyalty developed. Today, while
people still add ice, they have continued to
prefer the taste of Heineken® as its inherent
bitterness survives the addition of ice far
better than the low-bitterness Asian beers."
Covering such a vast area, it is not surprising
that the company has had to meet a host of
region-specific logistical issues. "There was
a period during the 1980s and 1990s where
shipping containers were not yet available
in much of Asia," says Wilson. "All of our
beer had to be loaded into the hatches of
conventional freighters by crane or by hand.
Not only was it labour-intensive, but it also
resulted in a high degree of damage. As
you can imagine with fast-moving consumer
goods, pilferage was also very high.
Ever since its incorporation in 1979, Heineken
Far East, the Export Office for Heineken, has
been a pioneer in the Asia-Pacific region,
penetrating emerging markets and opening
up new ones.
In some Asian countries, the Heineken
brand has grown steadily to the point that
local production became an economically
viable option. Once the Heineken brand is
well established and entrenched into the
consumer mind, local production would be
considered as the next logical step.
Heineken Far East's Export Manager Wilson
Tan has been at the forefront of these
developments. "In 1979, Heineken Far East
was incorporated as the Export Office for the
Heineken Group in the Asia Pacific region.
A large proportion of our business revolves
around ship supply and airport retail sales,"
says Wilson.
"When we started out, Heineken® was
virtually unknown as a brand in this region,
and this presented its fair share of difficulties.
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