Interview
Our innovations
drive value for us and
our trade partners
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INNOVATION
Jacco van der Linden, HEIN EKEN UK Marketing Director,
talks to World of HEINEKEN about the operating
company's recent acceleration in innovation.
Creating Change
Guiding Insights
Signs of Success
Premium Portfolio
Future Expansion
"HEINEKEN is the market leader in cider and beer in the UK. To ensure we
are also leading the shaping and growing of the categories, we had to
enhance our capability to do more, faster and better innovations.
"We have developed an innovation ambition and strategy based on
consumers' and shoppers' fundamental motivations and needs; we have a
greater focus on concept development; we've created a more disciplined
innovation process and we concentrate on the details of perfect execution.
"Most importantly, we have changed our culture to be less afraid of failure
and clear about future volume and value expectations. It's not that you
plan to fail - but if failure isn't an option, success isn't either."
All new HEINEKEN UK innovations are guided by category, consumer
and shopper insights.
"In the UK, the mainstream cider and beer segments are under pressure
and have been losing relevance to younger drinking-age adults. At the
same time, there's a trend towards premiumisation. Consumers are
looking for more sophisticated offerings, to fit increasing mixed gender
social occasions. We have seen these rise from 10% to 30% of all drinking
occasions in just five years. Added to this is the desire for greater variety
and less bitter flavours.
"Desperados and Bulmers are examples of how, even in a declining
market, you can be successful when you combine these trends. With the
new additions to the portfolio we hope to continue this success."
Following two and a half years of concentrated effort, HEINEKEN
UK already has innovations to be proud of. "In 2013 we launched
Strongbow Dark Fruit, a premium line-extension of our core cider
brand, Strongbow. It has been a massive hit and was the most
successful innovation of the year across all FMCG categories in
the UK. Additionally, Bulmers brand innovations helped it take the
number one position in packaged cider in 2013."
"Our total innovation rate has skyrocketed from 1.7%
to 11.4% in 2013, equating to more than 1 million
hectolitres. Importantly, the revenue per hectolitre from
innovations is 30% higher than the portfolio average,
driving added value for us and our trade partners."
"The team is already working on launches for 2015-
16. We've also re-organised our marketing and trade
marketing set-up to meet our ambition to be the
UK innovation powerhouse, including dedicated
category development teams working directly with
customers. Last year we were delighted to be placed
top of a UK retailers' survey based on our continuous
improvements in innovation, brand marketing and
category development.
"The world is changing fast. As a big company we have
to be more entrepreneurial, agile and lean. As the
category leader we should be the experts, working
closely together with our customers as a credible
partner to grow the category."
BULMERS
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