Heineken looks beyond beer as it launches huge cost-cutting programme | WARC | The Feed
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Heineken looks beyond beer as it launches huge cost-cutting programme
Heineken says it wants to move beyond its traditional male, beer-drinking image and attract more female and younger drinkers.
The world’s second-largest brewer already devotes a quarter of its beer marketing spend to its successful “0.0” alcohol-free label, and now plans to promote other non-traditional products, such as low-alcohol beers, cider and “hard seltzers” (alcoholic, flavoured sparkling water), says chief executive Dolf van den Brink. It is these and other “creative and innovative” products that will win over new consumers, he told the FT.
The context
- Global beer sales were rising before the pandemic, but varied wildly between markets with volumes declining in the US, and flat in China, while on the rise in Mexico and Vietnam. Globally, beer consumption fell 10% last year.
- Values are generally rising faster than volumes as consumers develop a taste for pricier drinks. Innovation is the key to growth, say analysts.
- The push into a broader range of products - and consumers - comes as Heineken launches a major restructuring programme that will see 8,000 jobs go and advertising spending streamlined. The company aims to restore marketing and sales spending to 2019 levels by 2023 at the latest.
Sound bite
“The beer industry has for decades ignored the fact that half the population didn’t really like drinking beer.” Trevor Stirling, analyst at Bernstein.
Sourced from Financial Times
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