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Heineken integrates cider and beer, targets global growth

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Heineken is looking to premiumise the global cider category by incorporating cider production within its existing breweries.

In a presentation to analysts last week, the company's COO, Jan Derck van Karnebeek, said Heineken has developed a method to install cider-making facilities in its existing production sites. Van Karnebeek said the process takes about six months and allows the production of 100% apple cider.

“This is a powerful thing,” he said. “We see an opportunity to drive cider very hard by integrating it into our existing business.”

Van Karnebeek said Heineken, which owns the Strongbow brand, will be able to leverage its asset base and route-to-market to help maximise efficiencies in the cider-making process. The company can also integrate the marketing and sales teams for its beer and cider units, which previously operated independently.

“The boundaries between these categories are blurring,” Van Karnebeek said. “The company that best understands that has an opportunity to win.”

Meanwhile, Van Karnebeek said that Heinken is looking to accelerate its namesake brand's market share in emerging markets. Asked if the company will roll out new extensions for brand Heineken - such as Heineken Light, which was reformulated last year - Van Karnebeek said: “Wait and see.”

In its half-year results, reported in early-August, Heineken saw its sales rise by just over 7%, with net profits in the period increasing by 14%.


Sectors: Beer & cider

Companies: Heineken

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