NETHERLANDS: Global focus could hurt Heineken - analyst
Heineken is looking to consumers across all its markets
Heineken's focus on its global brands could damage sales as the world market fragments, an analyst has warned.
At an investor conference on Friday (2 November), the Dutch brewer said it is using brands such as Heineken to target core consumers across all regions because customers today have much in common.
“We believe there are more commonalities between a lawyer in Bangalore and a lawyer in San Francisco than there are between a lawyer in San Francisco and an agricultural worker in Minnesota,” Heineken COO Alexis Nasard told the London conference.
However, moves by rival brewers to take a local approach could prove more successful, analysts Nomura said in a note today (5 November).
“We would see (Heineken's) approach as being more focused on global brands compared with Anheuser-Busch Inbev, SABMiller and Carlsberg, which have a greater interest in local premium brands as well as global brands,” Nomura said. “The recent trend towards 'small is beautiful' could in many ways make it easier for local premium brands in beer to achieve growth.”
Heineken's Nasard said the group is also focused on its other global brands such as Amstel, Strongbow Gold cider, Sol and Desperados, while it does not rule out expanding the presense of Tiger Beer once its completes its takeover of Tiger owner Asia Pacific Breweries.
Nomura also said it is surprised that Heineken has yet to roll-out its Desperados brand in the US following the success of A-B InBev's Lime-A-Rita.
Heineken released its year-to-date results last month, with net profits climbing by 9.9%
I can't remember precisely when I first saw the BRIC acronym. Indeed, with only ten years' experience of the drinks industry, it seems to be have been around longer than I have. I can remember, howeve...
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