Family-controlled Heineken became the world's second largest brewer during 2016 and owns the best-selling premium beer brand. It manufactures its own products through a huge and wide-ranging network of 140 breweries in more than 70 countries. In 2018, Heineken and its subsidiaries sold 234m hectolitres of beer worldwide, up over 4% on an organic basis. After a slow start, Heineken has entered wholeheartedly into the consolidation of the global beer industry since 2007. That year, it launched a joint bid to break up the UK's Scottish & Newcastle in partnership with Carlsberg. Completion of that deal the following year established Heineken as the leading brewer in the UK. In 2010, it expanded its footprint in Latin America with the acquisition of Mexico's second largest brewer FEMSA, adding Sol, Tecate and Dos Equis to its worldwide portfolio. Subsequent purchases include Singaporean brewer Asia Pacific Breweries, owner of Tiger Beer; and Schincariol in Brazil. Its flagship brand is of course Heineken itself, sold in 190 countries globally and also available in several variants including non-alcoholic Heineken 0.0, Heineken Premium Light In virtually every market except its home country of the Netherlands, Heineken is priced as a premium lager. Total volumes were almost 39m hectolitres in 2018. Heineken's #2 international brand is Amstel, available in 100 countries worldwide, and also supporting multiple variants. These are accompanied by a vast collection of regional or local products including Tiger Beer, Desperados, Strongbow cider, Red Stripe, Moretti, Sagres and Kingfisher. It also has a large collection of regional soft drinks businesses including Vrumona in the Netherlands. For 2018, net revenues rose by 4% to €22.5bn, with net income of €1.6bn. The group is publicly quoted but still majority controlled by the founding family, led by Charlene de Carvalho. Jean-Francois van Boxmeer is group CEO.
Capsule checked 25th January 2019
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Recent stories from Adbrands Weekly Update:
Adbrands Weekly Update 4th Oct 2018: In the Netherlands, Starcom will surrender the local media for Heineken and its soft drinks subsidiary Vrumona at the end of this year to a new Dentsu Aegis unit to be named Red Star.
Adbrands Social Media 6th Jul 2018: FRIDAY CLASSIC: Heineken 'Walk-in Fridge' by TBWA Neboko (2009). This week's Classic hails from the Netherlands, but became such a huge hit online - 15 million views in just the first three months - that it was rapidly rolled out around the world, inspiring a deluge of unofficial tributes or spoofs as well as several follow-ups from Heineken itself. The brewer had itself only recently taken the decision to abandon its conservative family-controlled corporate stance and leap into the rapidly consolidating global market with the acquisition of British rival Scottish & Newcastle. Meanwhile at long-time agency TBWA\Neboko, founding creative partners Cor den Boer and Diederick Koopal were handing over to rising stars Jeroen van de Sande and Jorn Kruijsen. The time was clearly right to try something new. ...[Story continues here]..
Adbrands Weekly Update 15th Feb 2018: Heineken, now the world's second largest brewer, reported solid performance for 2017. Total beer volumes rose 3% on an organic basis to 218m hectolitres of beer worldwide. There were gains in all business regions, although the rise in Europe was just 0.2%, compared to between 3% and 9% elsewhere. Revenues rose by 5% to €21.9bn. The absence of the prior year's various impairment charges allowed net profit to jump by almost 26% to €1.94bn. Separately, the brewer announced the resignation of US chief marketing officer Nuno Teles, who has been named as president of Diageo's US beer division, with responsibility for Guinness, Harp and Smirnoff Ice. Jonnie Cahill, currently the group's senior commerce director for low and no-alcohol brands, will succeed Teles as CMO for Heineken USA.
Adbrands Weekly Update 21st Sep 2017: "The Last Duel". Did they put something in the water at Publicis Italia? With the exception of its Paris flagship, the wider Publicis network isn't generally noted for exceptional creative work. Indeed, it's comparatively rare that we feature any other outposts in this feed. But the past couple of weeks has seen the arrival of two excellent campaigns from the Italian office, also it must be noted home to the network's recently appointed global creative chief Bruno Bertelli. (The other is the new Diesel ad - see it on our Facebook page). After a slow start, Publicis Italy has now really hit its stride with this new campaign for Heineken, which - finally! - is just as good as anything from previous agency W&K. Not only do the cinematic pastiches work brilliantly, but the agency also manages to coax strong performance out of a trio of footballers, not as a breed generally noted for their acting skills (at least off the pitch!) Gooooooal! Here's a Barry Lyndon homage with Jerzy Dudek.
Adbrands Weekly Update 2nd Feb 2017: "The Invention". Though it shifted all of its international advertising to Publicis last year, Heineken wisely chose to retain TBWA\Neboko as its domestic agency. That shop has continued to deliver fine work for the beer; work that in our humble opinion is far superior to most of the ads we see elsewhere from Publicis. This lavish and entertaining new film surely deserves a wider audience than merely the Dutch market. Combustion engines and electricity are all well and fine, but nothing beats a cold beer at the end of the day.
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