it "Our partnership with Heineken started because my father, Albert Wengler,
liked the quality of the beer and its reputation. He wanted to become the
exclusive distributor of Heineken® in Luxembourg. He was convinced that
Heineken® and Caves Wengler would be a good match. It is the premium
beer he was looking for to match our offering of premium wines, champagnes
and spirits. My father was very determined and said: 'I only want Heineken, no
other beer.'"
PROUD TO SIGN ON
It was a good instinct: Heineken shared the Wengler
vision. On the 5th of June 1978 Gérard went to
Amsterdam with his father and uncles Paul and Edmond
to sign the contract with Mr Freddy Heineken himself.
"I was 25 years old at the time. I clearly remember
that my father was very proud to meet Mr Heineken in
person," says Gérard.
BEER LOVING NATION
The match worked well, also because Luxembourg is a
beer loving nation well able to appreciate a fine brew.
"Luxembourg has a fair number of beer breweries,
given its tiny size." says Damian Dabkowski, Heineken
Manager Export Licenses for the Western Europe
region. The principality has a population of around
440,000 and a total beer consumption of 370,000
hectolitres a year. There are two main local brewers,
but Heineken® is the leading imported premium beer
brand in Luxembourg, with a market share of more
than 2 per cent. "The market share of Heineken® has
increased steadily since Caves Wengler became the
sole distributor. This is quite an achievement, given that
annual per capita beer consumption in Luxembourg
has fallen from 120 to about 85 litres over the last few
years."
STILL GROWING
Caves Wengler aims at an annual increase of 10 per
cent to 15 per cent a year for Heineken®, in both
volume and turnover, says Gérard."Heineken® is
our number one selling brand in terms of volume. We
cover 100 per cent of Luxembourg's supermarkets and
fuel stations, and 90 per cent of all restaurants. We
reach the bars and bistros via our wholesale business.
We also have some 6,000 customers." Internet sales
have started to become more interesting recently, he
adds. The firm mostly offers bottled beer, but five litre
Heineken® DraughtKegs are available from the web
shop.
HEART OF EUROPE
Luxembourg, while not an obvious choice at first
sight, is clearly a strategic market for Heineken. "It's
not one of our largest export markets but it's a very
suitable market for us," says Damian. "Luxembourg is
situated in the heart of Europe, and bordered by big
beer-loving countries Germany and Belgium, as well as
France, famous for its wine. The Luxembourgers have a
tradition of eating out and they take time for business
lunches or dinners at bars and restaurants." The
principality also hosts many expats because the city
of Luxembourg is the seat of several institutions and
agencies of the European Union.
Luxembourg is also very popular amongst nature-
loving tourists and cross-border shoppers, who take
advantage of lower petrol prices, he says. As the
exclusive distributor to petrol stations in Luxembourg,
Caves Wengler therefore helps Heineken® to reach
cross-border shoppers. All of those factors combined
make Luxembourg an interesting beer market for
Heineken.