Festive spirit in a bottlede Nouvelle Caledonie, the local Heineken operation, first hosted it in...

Summer 2008

38Winter 2008/2009

39

Festive spirit in a bottle

The Quiet AchieverAn interview with Heineken Prize winning

scientist Bert Brunekreef

James BondAn insider's view into the making of the

James Bond commercial

Celebrating winter beers

contents

Cover image:

The holiday season is a time for enjoying the

company of friends and family. Winter beers

such as those from Brau Union Austria, make a

perfect fit with the festive season.

2/5 neWs At The Olympics: Holland Heineken House

Extra Cold Tours Europe

Heineken City opens for business

New Brewery opens In Tunisia

New Caledonia Music Festival

Heineken Supports the Zurich Street Parade

Heineken USA celebrates Day of Giving

King of Spain opens Seville Brewery

8/11 'tIs tHe seAson: HolIdAy BeeRs

12/17 BeeR cAn tRAVel: sInGAPoRe

20/25 HeIneKen PRIZe AWARds 2009

28/35 BUsIness tAlK Business numbers

The Credit Crisis and Heineken’s partners

How to get draught beer right

Bumper grain harvest in Europe

Burundi releases first ever sustainability report

Global campaign for Responsible Consumption

Brewers of Europe meet with EC President

38/41 tHe BRItIsH PUB

42/45 Ice HocKey And tHe sUB-ZeRo BAttle foR GloRy

46/49 tRends & InnoVAtIons

Beer rebounds in America

Amstel Pulse wins design prize

Heineken Experience reopens

New filtration changes brewing

50/53 lUXeMBoURG PARtneRsHIP: cAVes WenGleR

54/57 tHe MAKInG of tHe JAMes Bond coMMeRcIAl

60/63 eVents New orchard planted in Herefordshire

Annual results presented

Brazil recruitment site launched

The People’s Darts Championship

Hahnenkamm Ski Race

64/65 cosMo BARs South Africa

Winter 2008/2009

World of Heineken is published

twice a year by Heineken,

Group Corporate Relations,

and is distributed worldwide to

the company’s trade partners,

on-premise business contacts,

regulators and the media. Partial

or full reproduction of articles or

illustrations is only permitted with

the editor’s explicit consent.

© 2008, Heineken International.

Publications manager:

Sandra Park,

[email protected]

Managing Editor:

Andrew Balcombe,

[email protected]

Photography:

Getty Images

Text:

Andrew Balcombe, Eric van den

Berg, Andrew Bergman, Mike

Croall, Juliette Rieff-den Boer,

Esther Tenhof, Philippa de Villiers

Art Direction:

vM-design

Printing:

Drukkerij Groen, Leiden

1

News

Holland Heineken House helps celebrate success in Beijing

Heineken Extra Cold Experience tours Europe

This year as the 29th edition of the Olympic Games took place in Beijing, the ninth Holland Heineken House was brought to life in the Chaoyang District of Beijing.

Since 1992 the Holland Heineken House has served as a focal point for Dutch athletes, fans, officials and family members. The Holland Heineken House, which is steadily becoming a Dutch tradition, is mostly known as a house of celebration. For the Dutch there was plenty to celebrate this summer. A total of 14 medalists celebrated their moment of Olympic glory with international revellers in a jam-packed Holland Heineken House.

More than 300 crew members, including 170 volunteers, joined together to make the Holland Heineken House a reality. By the end of the Games, almost 100,000 people had visited the venue.

www.hollandheinekenhouse.nl

Last summer, The Extra Cold Experience, a mobile ice bar, passed through 23 European cities in 12 countries. The Experience was created to generate awareness of Heineken Extra Cold: the same trusted beer served at a chilling zero degrees Celsius.

An average of 3,708 consumers a day were made aware of the Extra Cold Experience of which ten per cent actually visited the sub-zero ice bar. The Extra Cold Experience was hugely successful at increasing sales and increasing distribution by an average of 22 per cent per country. In Greece, for example, 385 outlets began selling Heineken Extra Cold, increasing distribution by 48 per cent. Slovenia saw 30 new outlets join the Extra Cold club, making 46 in total.

www.heineken.com/extracoldexperience

HRH Princes Máxima and Judo bronze medal winner Ruben Houkes celebrating in the Heineken House.

World of Heineken 39 - winter 2008/2009

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On July 5, Heineken became the first international brewer to open its own concept store.

The store, dubbed Heineken The City, spans six buildings and two floors in the historic heart of Amsterdam, the Dutch capital. The shop’s opening, which took place amidst massive media attention, featured a fashion show hosted by Dutch designers, including Daryl van Wouw.

Heineken The City sells Heineken® beer in several unique packages. However, as Herwin van den Berg, Marketing Manager for Heineken Netherlands, notes: “Heineken The City is not a bar or café”.

The City mainly sells lifestyle related products, such as fashion apparel, exclusive merchandise, music experiences, travel-packages, tickets to events and much, much more. “It is a shopping experience that will stimulate all the senses,” says Herwin.

www.heinekenthecity.nl

Early this October Heineken sold its first ever locally brewed bottle of beer in the Mediterranean country of Tunisia.

The beer was brewed and bottled this September at the newly constructed brewery just outside the country’s capital of Tunis. Heineken® has rarely been available until now.

The new brewery, which has an annual production capacity of 200,000 hectolitres will brew a mainstream brand Golden Brau, in addition to Heineken®.

Heineken City opensHeineken brewed in Tunisia

Tunisia consumes approximately one million hectolitres of beer annually, mainly in hotels and tourist resorts. So far a local brand has a ninety per cent market share. “With the distribution network we acquired through our recent takeover of soft drink manufacturer SNBG and our strong beer portfolio, we are now in a position to put a serious dent in their market share,” said Guillaume Duverdier, General Manager of SONOBRA (Heineken Tunisia).

[email protected]


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The 17th Zurich Street Parade drew 820,000 visitors this August. It is the largest electronic music event in the world since the demise of Berlin’s Love Parade, and Heineken was one of the major sponsors.

In addition to the parading “love mobiles,” 25 stages offered musical entertainment throughout the Swiss city. DJ’s headlining the event included the Dutch Fedde le Grande and the British Andy Moor.

The main motto for this year’s event was “friendship.” Heineken picked up on the positive vibe and invested heavily in responsible consumption at the Street Parade. The new “Enjoy Heineken Responsibly” logo was clearly visible on all branded materials, and 80 employees handed out flyers promoting the responsible consumption message.

www.streetparade.com

The Pacific island of New Caledonia danced to the 18th edition of its annual music festival “Live en Aout” (Live in August) this year.

The festival drew more than 10,000 visitors. It has become a staple of local culture since Grande Brasserie de Nouvelle Caledonie, the local Heineken operation, first hosted it in 1991. What began as a small local jazz festival has evolved into a major festival with music styles varying from roadhouse to gipsy.

“This year’s absolute highlight was Pablo’s Discobar, a spectacular funk band from Australia,” said Leo Evers the General Manager of GBNC. A concert by Brisbane-based Australian ska outfit Foghorn Leghorn in a jazzy joint near the Baie des Citrons beach marked the end of eight days of “rhythm, fun and pleasure” on the island.

www.live-en-aout.nc

Rhythm and dance in the Pacific

Heineken brings friendship to Zurich


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‘Day of Giving’ in USA

On July 24, more than 100 Heineken USA employees came together for a day of community service in their head office of Westchester, NY.

Led by Heineken USA President Don Blaustein, some employees spent a day at a food bank packaging food for the homeless, while others brought smiles and conversation to elderly residents of a local nursing home.

This “Day of Giving” was part of the “Heineken USA Cares” initiative. A programme consisting of volunteer-work, employee and company donations to non-profit organisations through which Heineken USA gives back to the community.

July 24 was dubbed “Share the Good Day,” playing on the advertising tagline for Heineken Premium Light and the brand’s aim to sample a million new consumers this year.

[email protected]

King of Spain opens brewery

On October 22, HRM Don Juan Carlos, the King of Spain, officially opened the new Heineken brewery in Seville.

The King was shown around the greenfield brewery by the Managing Director of Heineken España, Carlos de Jaureguízar and Heineken España’s Supply Chain Director, Enrique Fernández Haya. After his tour, the King unveiled a plaque commemorating his visit to the brewery.

Charlene de Carvalho-Heineken, Michel de Carvalho, Jean-François van Boxmeer and René Hooft Graafland also attended the ceremony.

The project to build the new brewery, located just seven kilometres away from the old brewery site in the centre of Seville, was nicknamed ‘Jumbo’, due to its massive dimensions. It has been operational since March this year and has an annual brewing capacity of 5 million hectolitres.

[email protected]


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WhAT:

Supporting print ads for the global James Bond campaign, which will be rolled out across all media.

Where:

In over 50 countries worldwide, including the Asia Pacific region.

Who:

TBWA/Neboko agency, Amsterdam.Hoopla Agency, Dublin.


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CampaigN folio

CoNTACT: [email protected]

WheN: The campaign will start in October 2008 and continue until February 2009.


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Winter beerWhatever the weather, the holidays are a great time for getting together with

friends and family. to celebrate this time, special winter and christmas beers

have had an important place in europe’s brewing tradition for centuries, so

what better time to discover what some of europe’s brewmasters are brewing

up this season.


Drawing on all of the brewmaster’s skill, winter beers are often a deep amber colour, darker than most other beers, and have a creamy rich head. Originally intended to fortify people against the cold of winter, these beers tend to be stronger and denser, have more calories and a stronger flavour than standard beers due to the richness of the ingredients.

Preparing winter and Christmas brews gives brewmasters an opportunity to indulge their creativity, adding individual little touches to make the beer special. Often made from the season’s late barley harvests, winter beers benefit from cooler autumn temperatures and can age quietly, reaching full maturity around Christmas time.

FrANCe ANd BelgiumThe Alsace region in north-eastern France has long been renowned for its exceptional culinary tradition. Fischer is a brand that enjoys a consumer brand awareness of at least 87 per cent in France. Its Christmas beer, Fischer de Noël celebrates these roots by being made of exclusively Alsatian ingredients, according to Ségolène Allache, Brand Manager of Heineken France.

“Fischer’s logo, characterised by a distinctive Männele or ‘little man’ has been adapted – he has been dressed up in a Christmas hood,” she says.

Fischer de Noël is an amber beer with fruity and spicy flavours matched with a touch of caramel. “The complex structure and sweet bitterness results in a very rich and round taste with citrus fruits, malt, caramel and spicy flavours,” says Ségolène. “Its swing-top closing system is perfectly adapted for sharing, and there is strong enthusiasm for the brand, especially in its birth region, as a symbol of tradition, friendliness and expertise.”

Its limited quantity (production is planned for only 3,500 hectolitres) as well as strong and dynamic in-store point-of-sale visibility, will promote it as a special premium beer throughout France, although Alsace remains its key market.

AusTriATourism statistics confirm that Austria is a superb place to spend winter, and special winter beers are central to Austrian Gemütlichkeit (congeniality).

With tourists and locals flocking to the ski slopes all winter long this is an important time in Brau Union Austria’s marketing calendar and several special beers are rolled out to meet the increased demand.

“Puntigamer Winter Beer stands out with its rich golden colour and a hint of copper,” says brewmaster Andreas Werner. “A bottom-fermented, amber coloured beer

The first barrel of Puntigamer Winter beer being tapped in Austria.


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that is distinctly more pleasant to the palate than the traditional dark malty “bock” beers, it is smooth and full with an unobtrusive hops flavour. Brewed according to the ice beer method, i.e. concentrated to a higher alcohol content because freezing out reduces water content, its slight caramel touch makes it the perfect beer for winter days.”

Another brand, Zipfer, is also available in special Christmas variants. "Both the Zipfer Stefanibock and Josefibock have a long maturation period and are strong on hop content,” says Andreas. “They have a slender bock beer character and 7% alcohol content. Zipfer Bock gleams with an intensive golden colour, it is harmonious with a fine spicy tang and malt note and has a powerful taste with a concentrated hops finish.”

As with most bock beers, Gösser Bock, related to a third brand of Austria’s successful beer portfolio,

is brewed with a distinct flavour. It has an intense yellow colour and a highly complex bouquet with a strong malt fragrance. Andreas points out that the fresh and fruity flavour is supplemented by

an aroma that is reminiscent of gingerbread and dark breads, and it has a long-sustained and powerful after-taste.

Traditional bock beer tappings (the first opening of the keg) have been scheduled, with their unmistakable mix of pleasure, sociability and relaxation. With production of 2,300 hectolitres of Gösser Bock, 1,450 hectolitres of Puntigamer Winterbier and 4,000 hectolitres of Zipfer Stefani Bock, Austria’s Gemütlichkeit looks to be guaranteed for another winter, but don’t be late and miss out!

romANiACiuc has long been respected as a premium brand in the Romanian beer market. Brewed by Heineken Romania, consumers have been able to look forward to Ciuc Winter since 2006.

“Ciuc Winter comes from our brewery in Miercurea Ciuc, the ‘freezing pole’ of Romania in the heart of the country,” says brewmaster Katalin Zakarias. “Here, people are used to temperatures being far below zero for longer. They have learned to deal with tough winters and also how to overcome long, dark winter days. A stronger beer, brewed to a traditional recipe is the perfect answer and allows us to ‘export’ this local concept nationwide and to brew a limited-edition winter version of Ciuc.”

“In order to exploit the whole sales period, we decided to avoid a direct link with Christmas and Ciuc Winter turned out to be the best brand name,” says Katalin. The product will be on the market from November 2008 until March 2009 with a total of 14,800 hectolitres

to be packaged in 0.5l bottles, 1.5l PET bottles and 0.5l cans. “This equals around 3% of the

annual brand volume,” says Katalin.

“How to overcome long, cold winter

days? A stronger beer, brewed after

a traditional recipe is the perfect

answer.”


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sCoTlANd“Christmas is predictably a very busy time of year in our business, but traditionally the New Year is an even bigger holiday in Scotland, with Edinburgh’s Hogmanay party now being renowned across the world”, says Marie Moser, Marketing Manager for Heineken-owned Caledonian Brewery in Edinburgh.

“We make an annual range of 12 'guest beers' for the trade. This December, we will brew ‘Elf’ Esteem, a special tawny-coloured, easy-drinking winter beer with an enticing trace of natural orange and molasses. This gives a rich, smooth texture and satisfying finish,” says Marie. “The label shows several elves busying themselves around it, which adds to the Christmas atmosphere.”

Marie underlines that Elf Esteem, like all Caledonian’s beers is still brewed by hand using whole hop flowers (rather than hop pellets or oil). This takes place in their working Victorian brewery – the last survivor of more than 40 that operated in Edinburgh during Victorian times. “Many of our brewing techniques are unchanged since then,” she says.

FiNlANdIn Finland, beer has a special place in the Christmas tradition, especially as it is the perfect companion for traditional Finnish Christmas menus.

“At Christmas, Finnish consumers seek premium products and variations to their everyday groceries,” says Niklas Kosio-Kanttila, Commercial Marketing Manager for Hartwall, based in Helsinki. “During Christmas, people are looking for experiences and special treats, which really suits high-quality premium beers.”

Niklas explains that the Christmas season’s speciality beers have become widespread in Finnish beer selections and their share of the beer trade is still growing. “Especially with beer, drinking habits change

during the holiday season and people look to speciality beers for new experiences and enjoyment,” he says. “During the winter season, consumers like more full-bodied dark beers alongside the lighter lagers, so Lapin Kulta’s authentic Christmas speciality beer meets this need perfectly.

“Branded under our main lager brand, Lapin Kulta is brewed in Finnish Lapland and has a strong Lapland heritage, it is made of pure, natural raw materials from Lapland,” says Niklas.

For the Christmas festive season, Hartwall is launching a rich and dark coppery Lapin Kulta Christmas beer. It is a very balanced product that embodies Lapin Kulta’s refreshingness and a full-bodied, rich malty flavour.

“Lapin Kulta Christmas beer is made from premium speciality malts,” says Niklas. “The malt mix used in the beer gives it the strong rich taste. You can also detect a hint of caramel malt, which balances the bitterness of hops. The beer smells fruity and mildly of hops, is a dark copper colour, and when it is poured it forms a thick, soft and clean white head. We will produce 400,000 litres this winter,” he concludes.

One Scottish

Christmas beer is

made in a brewery

that has changed

little since Victorian

times


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Beer CaN

Travel*

* As said by Alfred Heineken, who served Heineken in numerous

functions from 1941 to 1995, including chairman of the Board

from 1971 to 1989.


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By Andrew Bergman

Beer has far to travel in the east


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Beer CaN

Travel

Ever since its incorporation in 1979, Heineken Far East, the Export Office for Heineken, has been a pioneer in the Asia-Pacific region, penetrating emerging markets and opening up new ones.

In some Asian countries, the Heineken brand has grown steadily to the point that local production became an economically viable option. Once the Heineken brand is well established and entrenched into the consumer mind, local production would be considered as the next logical step.

Heineken Far East’s Export Manager Wilson Tan has been at the forefront of these developments. “In 1979, Heineken Far East was incorporated as the Export Office for the Heineken Group in the Asia Pacific region. A large proportion of our business revolves around ship supply and airport retail sales,” says Wilson.

“When we started out, Heineken® was virtually unknown as a brand in this region, and this presented its fair share of difficulties.

In a region that has seen massive social, political, and demographic

shifts over the past three decades, singapore-based Heineken far

east will celebrate its 30th anniversary in 2009.

“Fortuitously, we were in the right place at the right time,” he says, “During the late 1970s and early 1980s, opportunities abounded in the region, but each presented its own particular challenges. Vietnam, for example, was keen to acquire international consumer goods, but wished to trade on a barter basis for their abundant commodities such as rice and coffee.”

Today, to use Vietnam as a prime example, Heineken® is perceived by business and the consumer as one of the leading international brands, along with Coca Cola and Nokia. “The historical presence of Americans in the area also fuelled this demand,” says Wilson. "Essentially, we have represented the pioneering spirit, planting the Heineken flag in new Asia Pacific markets.”

Wilson has seen consumer preferences change and evolve over the years, as access to international brands became more widespread. “Heineken® has always been seen as a very European brand with a higher degree of bitterness in its flavour than the local Asian brands. Traditionally in

Asia, many people drink their beer with ice. Initially, this presented us with a challenge because the addition of ice diminished some of the bitterness of a ‘full-blooded European Beer’ that was the key differentiator in the market. In the longer term, however, the bitterness itself became less important and the consumer started to look for the brand itself as brand loyalty developed. Today, while people still add ice, they have continued to prefer the taste of Heineken® as its inherent bitterness survives the addition of ice far better than the low-bitterness Asian beers.”

Covering such a vast area, it is not surprising that the company has had to meet a host of region-specific logistical issues. “There was a period during the 1980s and 1990s where shipping containers were not yet available in much of Asia,” says Wilson. “All of our beer had to be loaded into the hatches of conventional freighters by crane or by hand. Not only was it labour-intensive, but it also resulted in a high degree of damage. As you can imagine with fast-moving consumer goods, pilferage was also very high.


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At that time, export markets such as Hong Kong, the Indian subcontinent, Brunei, Singapore, Japan, Malaysia and the US Military in Japan and Korea were the most significant takers in a market of approximately 60,000 hectolitres per annum.

Several opportunities for expansion were recognised as Vietnam needed barter trade and South Korea and China were opening up to foreign beer imports.

The company’s area of responsibility included all Asia-Pacific countries without local Heineken production, excluding the export offices in South Korea, Japan, Taiwan and Hong Kong.

Over the years, several markets have locally produced Heineken® including Malaysia in 1985, Vietnam in 1992, Thailand in 1995, New Zealand in 1996, Australia in 2004, China in 2004 and Indonesia in 2005.

Today, Heineken Far East serves India, Nepal, Pakistan, Sri Lanka, Bangladesh, the Maldives and Bhutan on the Indian subcontinent, as well as the Philippines, North Korea, Mongolia, Afghanistan, Cambodia, East-Timor and Laos in the rest of Asia. It is responsible for the duty-free segment in Singapore, Malaysia, Thailand, Vietnam and Brunei, and covers Guam, Fiji, Tonga, the Cooks Islands, Samoa, Kiribati, the Solomons, Vanuatu, Wallis and Micronesia in the Pacific.

Heineken Far East: A closer look

in 1979, heineken Far east Pte. ltd. was incorporated as the export office for the heineken group

in the Asia-Pacific region. At that time malayan Breweries limited, which is known as Asia Pacific

Breweries today, was the only brewer of heineken beer in Asia, and heineken® was a little-known

brand compared to Becks and Carlsberg.

Special delivery for Harry’s Bar at Boat Quay in Singapore.


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“One example was when shipping to India in the early 1980s, and there were no shipping containers. If the ship encountered heavy seas, which was not rare at all, water would leak in. You can just imagine what would arrive at the other end – 5,000 cases of beer in soggy cartons. It became nearly impossible to offload. This was a real logistical nightmare at the time, which continued until the early 1990s, when containers became available.

“In one case that I remember clearly, we had to ship our beer to the Indian port of Madras. There was a passenger ship with cargo capacity that sailed every third week - 18 days there and 18 days back. What was puzzling was that with each sailing, we lost an average of 15 cartons of beer. To investigate, some of our people travelled to Madras with the ship,

and watched the unloading. They were using a human chain to offload the vessel, passing the cartons from hand-to-hand all the way from the port to the warehouse. Of course, these labourers would get thirsty, so effectively, a percentage of the beer that was being fed into the human chain at one end was not emerging at the other as it was being ‘used’ to fuel the chain.

“More recently, before we switched to local production in Indonesia, I was called by the port authority at the Batam duty free zone near to Singapore. They told us that our Heineken® cans were floating in the sea near the harbour. What had happened was that a wave had swamped and sunk one of the shallow wooden boats, carrying 20,000 cases of Heineken. The cartons then disintegrated

and the cans came bobbing to the surface. We had to find people with fishing nets who could then drag the cans of beer ashore.

Today, the majority of shipping uses containers, and the rest – roughly 55% of Heineken Far East’s business involves supplying ships for on-board consumption.

“For a number of years, we have been multi-sourcing product for our exports, not only from the Netherlands but also from Malaysia and Singapore,” says Wilson. But exporting to land-locked countries like Cambodia, Laos and Mongolia presents their own logistical nightmares, not the least of which involve the fact that beer destined for these countries must first travel through another country.”

Beer CaN

Travel


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Wilson looks back on the past decade as a particularly successful one. “We have been very successful in growing our markets in the region in general and the Pacific Islands in particular.”

Wilson counts his Heineken Far East’s market penetration as the spearhead of its success. Even opening markets in countries where there are unstable political situations, we have still managed to establish a position as the leading importer of beer. There have still been hiccups. In one case, an entire shipment was lost when two major supermarkets were ransacked and looted during civil unrest.”

Heineken Far East has also become accustomed to markets where they have had success to leave the nest and start local

A cold refreshing beer to enjoy in the warm South East Asian climate.

production. “Economically, to propose any country for local production, there must first be a very high excise duty barrier,” Wilson explains. “In most Asian countries, such as India, excise duties on imported alcoholic beverages are very high, so that would make it a prime candidate for local production in the future. Other countries where duties are very low will remain export markets for many years to come.

Heineken Far East now delivers an annual volume of 250,000 hectolitres to the region. “Over the past 10 years, we have effectively penetrated the markets in virtually every country in Asia,” says Wilson. While further penetration of new markets becomes more challenging, our focus is now shifting towards sustaining and building those markets, to

achieve or retain a position as market leader in imported beer, and paving the way for local production in the future.”

[email protected]



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CampaigN folio

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WhAT:

The Desirability II campaign, a sequel to the original rolled out in 2005. The campaign concept revolves around creating desirability for Heineken beer, as affirmed by its credentials – superior taste, quality and ingredients.

Where:

In 10 countries around the world, morecountries are expected to follow in the coming months.

Who:

Bates 141 advertising agency in Singapore.

WheN:

From August 2008 until the end of next year.

CoNTACT:

[email protected]


The heineken Prizes

On October 2, the Royal Netherlands

Academy of Arts and Sciences convened in

a special session in Amsterdam to present

the Heineken Prizes to five scientists and one

Dutch artist.

The 2008 Heineken Prize winners with HRH Prince Willem-Alexander and President of the Royal

Netherlands Academy of Arts and Sciences, Professor dr. Robbert Dijkgraaf at the award

ceremony in Amsterdam.


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The heineken Prizes


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T he award ceremony was held in a festive atmosphere at the Beurs van

Berlage, the old Amsterdam stock exchange. during the ceremony, films

of the award winners gave the audience an impression of each of the prize

winners’ accomplishments.

time on science, it is encouraging to see that there are people out there who support our work.”

The Heineken Prizes are awarded biannually to the most deserving practitioners of six disciplines in recognition of their achievements. These disciplines are Biochemistry and Biophysics, Medicine, Environmental Sciences, History, Cognitive Science and Art. In the 1960s, Alfred Heineken personally laid the foundations for the Prizes. And in 2006, the Prize for Cognitive Sciences was initiated by Charlene de Carvalho-Heineken. Today, the Heineken Prizes serve as a memorial to Mr Heineken’s passionate belief in the arts and sciences. Within the scientific community, the Heineken Prizes are considered only second to the Nobel Prizes in terms of importance and prestige.

For the fourth time, His Royal Highness Willem-Alexander, The Prince of Orange, together with Professor Robbert H. Dijkgraaf, President of the Academy, presided over the ceremony and handed over the awards. “The Princes’ presence had a major effect on the evening and gave the entire ceremony even more grandeur,” said René Bernards, a jury member for selecting the Biochemistry and Biophysics award winner who also attended the evening. “He did an excellent job and also gave an inspiring speech,” added Bernards.

Deservedly, the focus of the ceremony was on the Prize winners, and it also became clear during the evening how much of a commitment the Heineken family through the Heineken foundations, invests to stimulate the arts and sciences. “The presence of Mrs de Carvalho-Heineken underscored how important it is to the Heineken family,” said Bernards. “As a scientist spending all of my

The WiNNersThe Royal Netherlands Academy of Arts and Sciences announced this year’s winners of the prizes in April. The American scientist Jack Szostak was awarded the prize for Biochemistry and Biophysics for his “highly original insights into the fundamental origins of life”.

The Heineken Prize for History was awarded to British historian Jonathan Israel for his work on the early Enlightenment, which is an 18th century form of philosophy that bases reason as the primary source of authority. The Enlightenment went on to motivate the creation of the American Declaration of Independence and the French Declaration of the Rights of Man and the Citizen. Israel has argued that while generally Locke and Newton are seen as the founding fathers of this intellectual movement, Spinoza played a crucial, yet often overlooked, role.

The winner of the Dr. A.H. Heineken Prize for Cognitive Sciences was the French cognitive psychologist Stanislas Dehaene, he was selected for his research into the neurological foundations of mathematics.

British epidemiologist Richard Peto won the prize for Medicine. He is one of the founders of a statistical technique called meta-analysis. Meta-analysis is used for summarising or amalgamating quantitive research. Dutch environmental epidemiologist Bert Brunekreef has distinguished himself with contributions to the environmental sciences. In particular, his inquiries into the health-effects of air pollution; earned him the Dr. A.H. Heineken Prize for Environmental Sciences.

Last but not least, the prize for Art was awarded to Dutch photo and video artist Barbara Visser.

As part of their prize, each scientist received a cheque for $150,000 and the artist Barbara Visser received a cheque for €50,000 as well as financial assistance in publishing a book on her work. The prize winners were guests of the Heineken Foundation for a week, during which time, they shared their knowledge by giving lectures at universities throughout the Netherlands. The lectures that took place included ‘Halving Premature Deaths’ by Sir Richard Peto, ‘The Great Stink-stories about Air Pollution and Health’, by Professor Bert Brunekreef and by Professor Jonathan Israel, ‘Enlightenment, Philosophy, Democracy and the question of Social Inequality’.

Mrs Charlene de Carvalho-Heineken and her husband Mr Michel de Carvalho at the award ceremony.


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some Previous Prize WiNNers hAve hAd A huge imPACT oN our World

Throughout its existence, the Heineken Prizes have been awarded for many monumental achievements. One of which came to light 24 years ago. While studying the X-ray of a DNA experiment at 9:05 am on 10 September 1984, British geneticist Sir Alec Jeffreys had a “eureka moment”. Ultimately the discovery meant that Jeffreys could unlock the secrets of DNA fingerprinting. Professionals around the globe now commonly use this revolutionary breakthrough in science. The technique, simply described, uses variations in the human genetic code to identify individuals.

In recognition of his achievements with DNA fingerprinting, Sir Alec Jeffreys was presented with the $150,000 Dr H.P. Heineken Prize for Biochemistry and Biophysics in 2006. The Royal Netherlands Academy of Arts and Sciences paid tribute to Jeffreys’ contribution to science by saying. “The impact of Jeffreys’ discovery has been so far-reaching and rapid, that it is virtually impossible to imagine a world without it. His technique - DNA fingerprinting - allows us to answer questions such as: Who is the biological father of a child? And are these bones truly the remains of the last Tsar of Russia?” DNA fingerprinting has also been crucial in allowing experts to prove the innocence of people wrongly convicted for past crimes. DNA fingerprinting can also be applied to non-human species. Wildlife managers across the world now use the technique to assess the genetic health of species in their areas.

Sir Alec Jeffreys is just one of an illustrious number of Heineken Prize winners who have contributed fundamental knowledge through their work. Heineken Prize winners have gone on to win Nobel Prizes and many other major distinctions, clearly affirming the prizes’ high standards.

The PurPose oF The PrizesCharlene de Carvalho-Heineken, daughter of the late Alfred Heineken and the chairman of the Alfred Heineken Fondsen Foundation, said the main reason for the Prizes’ creation was to “encourage scientists in their research.”

It was an act of homage to his father, Dr Henry Pierre Heineken (1886-1971), that Alfred Heineken (1923-2002), established the Dr H.P. Heineken Prize for Biochemistry and Biophysics in 1964. A multi talented man, Henry Heineken also held a PhD in chemistry. He believed that scientific research was vital for the advancement of industry. His son, Alfred H. Heineken had an equal respect for science and its practitioners. In addition to the Dr. H.P. Heineken Prize for Biochemistry

One criterion that must be met is that the candidates should still be active as scientists or scholars and are expected to carry on with their work for at least another ten years. Finally and just as importantly, they must also serve as a source of inspiration to others.

An independent jury of members of the Academy, acting in a personal capacity, perform the selection for the Dr A.H. Heineken Prize for Art. Only Dutch artists can qualify. Charlene de Carvalho-Heineken said her father, Alfred Heineken, “would fall in love with a work of art. His quest was to discover new artistic talent and support young Dutch artists. That is just what the Prize is designed to do.”

and Biophysics, he established a number of foundations with a view to using them to fund more prizes for scientists. Enough capital had been accumulated by the late 1980s to fund these. Alfred Heineken also had a deep appreciation of the Arts, and discovered many Dutch artists before their work became well known.

The Heineken prize foundations have entrusted the nomination and selection of the Heineken Prizes to the Royal Netherlands Academy of Arts and Sciences. Roughly one year in advance of the award ceremony, the Academy invites scientists and institutions from around the world, to nominate candidates for the Heineken Science Prizes.

Some of the posters above promoting the lectures given by the award winners at Dutch universities.


24

One problem that is hard to get around though is traffic. Despite improvements in engine technology such as soot filters for diesel vehicle engines and catalytic converters, there is an increase in the amount of traffic. We have learned more about living near traffic and also the effects that pollution has on drivers using the roads. Another conclusion is that in the West we have exported our polluting practices to poorer countries. So things might be going to plan in one part of the world but not necessarily in other parts.”

Other examples of the scientist’s work are the discovery that damp homes, dust mites and mildew cause higher rates of asthma and allergies among children. The Professor also highlighted health problems caused by trapping pollution inside homes that were made more airtight, in order to conserve energy during the oil crisis in the 1970s.

An important part of the environmental epidemiologist’s work involves interacting with decision makers, such as those in the EU.“Our work contributes to international guidelines and standards. Such as urban planning and how close housing, day care centres and schools should be to motorways. Another is re-routing trucks away from built up areas. Based on our studies on children, traffic air pollution causes them to wheeze, cough and develop asthma. Some children also have an increase in allergies to tree or grass pollen. Their lungs do not work as efficiently and that could cause them to die at a younger age.”

imProviNg The Air ThAT We BreATheWhen the Dutch environmental epidemiologist Bert Brunekreef heard in April 2008 that he had won the Heineken Prize for Environmental Sciences, he confessed to being completely taken by surprise. “I was in the UK when I received the phone call. I must admit I was absolutely flattered. When I go about my work I don’t think about winning prizes.”

Painting a picture of Bert Brunekreef’s contributions to environmental science is no easy task because they are so extensive and varied. In 2005 the scientist founded the Institute for Risk Assessment Sciences at Utrecht University. He is still the director of the institute today. Surprisingly, some of his most groundbreaking work has focused on the environment that exists inside peoples’ homes.

ChANges iN PolluTioN“It is quite easy for fine airborne particles from traffic pollution to enter houses. Air filters on houses might be able to reduce pollution coming indoors. But this still needs to be systematically tested. We really don’t think enough about the quality of the air inside our houses,” said Brunekreef. Over the last 15 years Brunekreef focused on air pollution caused by local traffic.“If you think about it, we have fixed many of the problems in developed countries such as those caused by coal combustion for home heating. Industrial polluters have mostly been moved out of cities and countries to less densely populated areas or countries with lower pollution control guidelines.

dual heineken Prize and Nobel Prize winnersOver the past years, 10 Heineken Prize winners have gone on to become Nobel Prize winners. The Heineken Prizes for Art and Sciences are now among the most prestigious international awards in the world. The following winners of the Heineken Prizes have since won Nobel Prizes:

Christian de Duve Dr. H.P. Heineken Prize for Biochemistry and Biophysics 1973 Nobel Prize in Physiology or Medicine 1974

Aaron Klug Dr. H.P. Heineken Prize for Biochemistry and Biophysics 1979 Nobel Prize in Chemistry 1982

Thomas R. Cech Dr. H.P. Heineken Prize for Biochemistry and Biophysics 1988 Nobel Prize in Physiology or Medicine 1989

Paul C. Lauterbur Dr. A.H. Heineken Prize for Medicine in 1989 Nobel Prize in Physiology or Medicine 2003

Luc Montagnier Dr. A.H. Heineken Prize for Medicine in 1994 Nobel Prize in Physiology or Medicine 2008

Sir Paul M. Nurse Dr. H.P. Heineken Prize for Biochemistry and Biophysics 1996 Nobel Prize in Physiology or Medicine 2001

Barry J. Marshall Dr. A.H. Heineken Prize for Medicine in 1998 Nobel Prize in Physiology or Medicine 2005

Eric R. Kandel Dr. A.H. Heineken Prize for Medicine in 2,000 Nobel Prize in Physiology or Medicine 2,000

Roger Y. Tsien Dr. H.P. Heineken Prize for Biochemistry in 2002 and Biophysics Nobel Prize in Chemistry 2008

Andrew Z. Fire Dr. H.P. Heineken Prize for Biochemistry and Biophysics 2004 Nobel Prize in Physiology or Medicine 2006

Professor Bert Brunekreef accepting his Award from HRH Willem-Alexander, The Prince of Orange.


Barbara Visser

detail from: Former Futures (2008)

courtesy Annet Gelink Gallery/ Manifesta7.

25

moTivATioN ANd PersPeCTive

Bert Brunekreef said the force that continues to drive him is the work itself, “basically, I like what I am doing,” he says. "It is like doing a hobby and being paid for it. My chosen field deals with real world problems and bringing solutions to the real world.”

To his peers, students and colleagues, the prize announcement was no great surprise. In a laudation by Professor Brunekreef’s promoter for an Honorary Doctorate awarded earlier this year by the Leuven Catholic University (Belgium), Professor Benoit Nemery de Bellevaux told of one example of Brunekreef’s ability to inspire. It came from a student who wanted his thesis published while Professor Nemery was working as the assistant editor of a scientific journal, but was rejected. It read;

“Dear Dr. Nemery, despite the heavy disappointment of a manuscript rejection I understand your decision and appreciate your encouraging words. In particular I would express my thanks to reviewer 1 - if such thorough reviews are the standard of your journal, it will be my pleasure to consider it for future submissions!” The anonymous and unpaid reviewer was Bert Brunekreef,” said Nemery.

Brunekreef himself is the author of many of the most highly cited articles in the field of Environment Health, totalling more than 300 in number. He is also the winner of the 2007 Goldsmith Award from the International Society of Environmental Epidemiology and the 2007 European Lung Foundation Award.

iNTerNATioNAl BeNeFiTs Although Professor Brunekreef is based in Utrecht, his work and concerns for the environment have taken him to many corners of the globe. This has given the scientist a worldwide perspective when it comes to trying to solve the pollution question. One ambition of his is to use the money from the Heineken Prize to benefit people living in other countries.

“I want to use the prize money for giving study grants at Utrecht University to foreign students from developing countries,” says Bert Brunekreef. “Many people want to study in our programme but find it difficult to get sufficient support. Large areas within these countries suffer greater problems than in the West. It would be useful for them to develop their own expertise. At the moment I am trying to figure out how to bring in as many students as possible. We want to assess which students have the greatest potential and which have the greatest need. I think that is an appropriate way to use the money.”

The ArTisTAnother Heineken Prize winner who has been able to provide a clear picture of our present day society is the Dutch visual artist Barbara Visser. Her photos, videos and installations have not only provided a refreshing twist on art for onlookers, they also deliver brave and powerful messages on the complexities of modern day life. One example is her 2002 work, The World Belongs to Early Risers, which is a series of photographs of a man sunbathing on the seashore while, a short distance away, photographers are snapping photos of a man who has washed up on the beach.

Like her fellow prize winner Bert Brunekreef, winning the Heineken Prize was the last thing the artist expected. “I read the flattering words that the jury wrote in their report. I was surprised about their term ‘consistently distinct signature’ as I have always been criticized for trying to avoid a too obvious signature in my work. My aim is to keep questioning myself, the world, the arts, even though I am in some respects more successful now than a decade ago. This even increases the need for a critical point of view on what I do. That doesn’t always make it enjoyable, sometimes it seems, the artist does suffer, after all.”

KeePiNg CreATiveOne constant battle that an artist must face is how to maintain that creative focus and energy. Visser finds life itself one of the providers of her inspiration.

“New ideas come mainly from something I am fascinated by already - usually for a very long time. For me, the constant confrontation with worlds other than the art world itself is the most fruitful.”When asked what inspires her creations, Barbara says, “It can be many things. I look at the world with a combination of amazement, irony and irritation I guess. Looking at the way we shape the world, we shape events, our history and trying to understand how we do this is at once boring in it’s banality and bizarre because we experience things as normal that are not, just because they are familiar.”

room To WorKBarbara says the prize will help her buy time and perhaps space too. “One of the discrepancies that separate art from many other businesses, is that becoming more successful is not directly linked to having the financial means. For instance, to employ people to take on the rapidly increasing amounts of work indirectly related to showing the artworks. One strives for the works to become more known and to widen ones scope. I sometimes wonder what the role of this award has in achieving this; becoming part of the establishment changes the role one has in the arts.”

The next awards will take place in 2010.

www.heinekenprizes.com


26


27

WhAT:

A print campaign with a gimmick, pushing Heineken’s new transparent bottle label and embossed can designs in Hungary. The campaign featured a lay-over page, one transparent with the campaign’s message printed on it for the bottle. Another featuring embossed text for the can. The former won an EFFIE award in Hungary.

Who: Publicis Hungary.

WheN:

2007.

Where:

Hungarian print media.

WheN:

[email protected]


Business numbers

The Crunch

striving for the best quality in draft beer

BusiNess TalkWorld of Heineken 39 - winter 2008/2009

28

Business numbers HeIneKen noW oPeRAtes

BReWeRIes In MoRe tHAn

132 70

20 £145HeIneKen WIll AcHIeVe

millioNsyneRGIes tHRoUGH tHe s & n AcqUIsItIon

HeIneKen BRoKe tHRoUGH to secURe

5.8PeR cent GRoWtH of HeIneKen PReMIUM

to 12.9 MIllIon HectolItRes.

of tHe InteRnAtIonAl PReMIUM MARKet

In tHe fIRst HAlf of 2008.

PeR cent

In tHe fIRst HAlf of 2008, HeIneKen HAd A

coUntRIes

ARoUnd

tHe WoRld

tHe Recently AcqUIRed RecHItsA BReWeRy In

BelARUs HAs tHe cAPAcIty to BReW

And eMPloyees APPRoXIMAtely

525,000HectolItRes

HeIneKen HAs stRenGtHed Its nUMBeR

2PosItIon In tHe fAst GRoWInG

BelARUs MARKet WHeRe AnnUAl

consUMPtIon Is cURRently

estIMAted At AlMost

4.5MIllIon

HectolItRes.

cURRent estIMAted

PeR cAPItA

consUMPtIon In

BelARUs Is 45lItRes

Business numbers

PeoPle61,000


29

THE CRUNCHseptember 29, 2008, was a day of high financial drama in America. As the united states

congress rejected a $700 billion dollar bailout package for the American banking sector, Wall

street was left in a state of shock. untold billions of dollars disappeared into thin air as the

dow-Jones took a record 777-point dive in mere hours. The causes behind this financial panic

were, and remain, complex, but at its core lies a crisis of trust. Because more and more

debtors defaulted on loans that were therefore considered solid, the true value of banks’

monetary assets was cast into doubt. Banks became increasingly reluctant to lend money

that they might one day need themselves, to peers who may no longer exist tomorrow.

Against this backdrop, cash flow to businesses has proved difficult and consumer confidence in many markets has taken a significant hit. Most economic indicators tell us that there is probably more to come.

uK: iN The sAme BoATFew sectors or economies are untouched by the current economic crisis, which is impacting businesses both large and small. Even though we are clearly linked in the global economy, every market is different and has its own issues. In each, the way of dealing with things also has to be different.

In the UK, for instance, Scottish & Newcastle UK National Sales is providing Enterprise Inns support to help business recovery schemes for their licensees “to get through the tough times together,” says Stephen Spencer Jones, Trading Director of S&N UK National Sales. “We provide support in outlet, consumer driven and promotional activity to help them get through the current market conditions. There is no doubt that individual pub operators need our help and that of their landlords.”

The British pub industry, which was already hit by cultural shifts and the recent smoking ban, has always been particularly sensitive to economic ups and downs. As consumers begin to feel the impact, nights out become a consideration, not an automatic choice. If a lessee is struggling, the regional manager will offer some help in the

form of a financial concession such as a rental decrease or a product discount,” Stephen explains. “We can then support the regional manager by providing promotional support. Our marketing strategy is focused on driving people into outlets. For example, we promoted Halloween as a British holiday through our Strongbow cider brand, encouraging people to go out for the evening. All our advertising activities are driven at increasing footfall in the pubs.”

“We’re driven by a desire to help our self by helping others,” says Stephen. “If a lessee goes bankrupt that means no one to sell beer to. If we can help them through a pinch, once consumer confidence goes back up, and their sales are restored we can both reap the benefits.”

huNgAry: PurChAsiNg uNioNEven though the current economic slowdown is a truly global phenomenon it manifests itself in different ways throughout the world. While the UK saw banks struggling, the state was able to stabilise them through guarantees. In Hungary, it was the state itself that needed bailing out. The International Monetary Fund and the European Central Bank gave out a $25billion loan package to support the nation this October. Hungary had proven particularly vulnerable due to a huge budget deficit and a large amount of credit owned in foreign currency – an issue now that inflation is skyrocketing and the local currency, the forint, is rapidly losing ground.


30

The devaluation of the forint means that imports, such as oil and raw materials, are becoming pricier. That’s a double-edged sword for the Hungarians, since a drop in the cost of raw materials served as a silver lining to the financial crisis in most parts of the world.

Laszlo Benedek, Sales Director of Heineken Hungary says “We are supporting our wholesalers by giving them advice on reducing costs and sharing best practices. In addition, we have set up a purchasing union that they can join to leverage lower prices from numerous suppliers.”

NigeriA: sTill goiNg sTroNgAlthough no nation is totally immune to the effects of the credit crisis, some countries have fared better than others in the financial turmoil. Nigeria is one such nation whose economy continues to grow. “We are seeing some of the impact in decreasing oil prices,” says Oladele Ajayi, Sales Director of Nigerian Breweries. Nigeria, a member of OPEC, is one of the world’s major producers of oil. The nation’s welfare depends largely on the rise and fall of oil prices. The price of oil is still higher than the Nigerian government originally budgeted for, which is one of the reasons the credit crisis has had such little effect here so far. Also, the country’s banking system was relatively unexposed to the credit crisis.

A further decrease of oil prices might have a small effect on the economy. “The effect on disposable income should be limited however, under the current circumstances,” Oladele thinks. “Foreign direct investment might decrease due to a worsening global economic climate, but I think that gross domestic product will continue to grow, in the absence of a global recession.”

Tough Times AheAd?It is impossible to predict the future, and that has never been as true as now. No one truly knows how consumers in different markets will react to the slowdown. Worldwide, companies are looking to save costs and are looking for additional sources of capital to weather the tough times ahead. Heineken of course has also focussed on its own operations, and cut costs wherever it can.


31

“The focus on draught beer is twofold,” says Heineken’s On-Premise Business Manager Doron Wijnschenk. “We want to secure the best quality draught beer served at the point of sale, and we want to generate more opportunities for both Heineken and its customers. To do this, we have to create greater consistency across those locations that offer our beers on tap, and we have to constantly ask ourselves ‘what does quality mean at the point of consumption and how can we ensure drinkers experience a consistently high-quality draught beer’?”

Working with Heineken’s Channel Development Manager for Western Europe, John Ricketts, Wijnschenk began studying lower-volume outlets to see where improvements could be made. “We discovered that some of the key problems arose out of the complexity of cleaning systems and throughput rates within the low-volume segment

Striving for the best in

draught beer quality

over the past few years, heineken has

repeatedly come up with original and

creative solutions to better serve the

draught beer market. Now, heineken is

putting even greater focus on draught

beer by concentrating on the development

of commercial strategy that targets

beer quality improvement at the point of

consumption.


32

of less than 50 hectolitres,” says Doron. “One solution was to introduce a simple yet effective system—such as the DAVID or Xtreme Draught units— to eliminate cleaning costs and maintain the maximum hygiene quality. The keg is kept within a refrigerated unit so that the beer is served at a constant temperature. Additionally, the keg will stay fresh for up to 30 days,” he says.

However, despite such unique innovations, fluctuations in draught beer quality served through the traditional, inline cooler systems remain an issue, says John. “We currently use external specialists to measure and report on what is being purchased by our drinkers. They measure beer quality across 420 different outlets in 14 cities each quarter,” he says. “They measure the temperature of the beer when served—we strive to achieve 3 degrees in the glass!—and look at the appearance, the amount of foam, and carry out bacteriological tests. We know that drinkers define quality as a cold, refreshing beer, bright, with a sparkle that is served in a clean glass with a smile. By regularly measuring our performance and delivering this together with our customers to consumers we can set ourselves clear targets to improve quality levels.”

Although much of the focus on draught beer quality is concentrated in Western Europe, where more than 70 per cent of Heineken’s draught beer sales occur, markets further afield have also been impacted. Heineken Hungary, for example, saw a strong increase in sales and profitability levels following the introduction of a draught beer policy, says Doron. “Hungary introduced clear rules and guidelines for the sales force so that they knew which system to offer to particular customers. Our market feedback is that if you serve good quality beer to consumers, then they simply will enjoy the experience and consume a second glass”.

Laszlo Benedek, Heineken’s National Sales Manager in Hungary, is upbeat on the benefits. “We continue to receive good feedback from the market on our draught policy and system offering, including the no-cleaning David technology. Our sales force is very knowledgeable about the systems and works well with our customers. And consumers are enjoying the pleasures of drinking a perfectly tapped draught beer, served at the correct temperature”.

Heineken is absolutely committed to improving the drinking experience, concludes Ricketts. “The company will continue to drive quality and the drinking experience through developments stemming

from its research and innovation departments. However, now that we’ve set quality parameters centrally, we need to support our local markets to develop the strategy that works for our customers and of course the consumer who remains central to our success and is best placed to judge if we are achieving our quality benchmark.”

Such a strategy will result from the available draught beer policy framework, which aims to optimise the beer quality for consumers and financial returns for Heineken’s stakeholders, by having clear directives for the sales force regarding which draught dispense systems to use for which brand and volume segment.

[email protected]

The David


33

connection with the product, we now enter markets such as Spain, Romania, Ukraine or Russia and we are choosy about which quality grains we want to purchase."

Another important aspect in Heineken’s purchasing model is to buy locally produced grains whenever possible. "We are the only brewing company with a real global beer brand and we strive to have it tasting the same in each region,” Jürgen explains. “We believe in local supply chains, and will buy grains from around the world if it’s agronomically sound to do so. This helps employ local people and returns benefits to local suppliers."

The fight for stabilisation is important not just for Heineken, but also for its suppliers and, ultimately, for the consumer. Raw material prices today have an influence felt tomorrow and beyond. "Our approach to purchasing helps us keep quality high while ensuring our end product is always competitively priced," says Jürgen.

[email protected]

Heineken Purchasing Strategy Reduces Risk

over the last few years we've seen a steep rise in the cost of the

raw ingredients used in brewing, grain being one of them - this year

alone, input costs for heineken will increase by around 15% per

hectolitre. heineken has forward looking purchasing policies in place

to reduce the impact of price fluctuations.

"Heineken spreads the risk of barley purchases by buying around 50 per cent of its requirements pre-harvest, which allows us to agree on the price before the harvest, reducing our risk," explains Jürgen Mulder, Heineken's Category Manager for Barley and Malt.

The practice of forward purchasing, known as hedging, has advantages beyond just lowering price risks. "We also hedge on quality. The farmers' co-operatives already know what Heineken needs in the quality chain. This starts at the seed, fertilizer and storage stages and allows us to agree in advance which varieties should be grown. For example, we are already planning on the varieties to be used in 2010," Jürgen says.

"This year again, Heineken is actively involved in the selection of the optimum harvest", says Jürgen "Because we have a physical


34

This september, heineken’s Burundian

subsidiary Brarudi (short for Brasseries et

limonaderies du Burundi), published its

first ever sustainability report, outlining its

efforts to improve Burundi’s environment

and society.

Burundi brewer goes green

“Making the present state of affairs and our plans for the future known is our way of making a promise to the public,” Alexandra Sindahera, Corporate Relations Manager for Brarudi said.

Brarudi operates two breweries that brew Amstel and the local brand Primus. With approximately 1,000 employees on the payroll and with its 43 per cent share of the local beer market, Brarudi is a cornerstone of the local economy. It contributes approximately 14 per cent of the country's gross national product and it pays almost a third of all the nation’s taxes.

“When your impact on a country is that major, social responsibility becomes even more essential,” Alexandra said.

Environmentally speaking, Brarudi has committed to reduce its use of energy and raw materials by more than one fifth over the course of the next three years. Water use has already been reduced by more than 35 per cent during the last three years, meaning Brarudi is running well ahead of its original timetable, which intended to have a similar reduction realised by 2010.

Water use is a particularly important measure of environmental performance for Brarudi, since it draws all of its water supply from the ecologically fragile lake Tanganyika. The lake, the second largest in Africa, supports more than 400 species of fish and is one of the main sources of nutrition for a million people living around its borders.

The Burundian brewer also intends to reduce its emission of water pollutants to zero through the use of more efficient machinery and recycling.

In the employee safety department there was also good news to report, with the number of accidents having been reduced by more than 45 per cent since 2005.

“In addition to the importance of the environment and our employees, our efforts in the realm of responsible consumption are of great societal significance to Burundi,” Alexandra said.

In its Sustainability Report Brarudi has announced that it will dedicate a substantial effort to better inform the Burundian public about the dangers of excessive consumption. Brarudi has also committed itself to a self-regulatory code detailing the do’s and don’ts of beer advertising.

[email protected]


35

International campaign for responsible consumption

responsible consumption of beer has long been an objective of

heineken and this autumn the world will see the launch of the first

true international, internet-based responsibility campaign.

The campaign, dubbed Know the Signs, will reach out to young adult beer drinkers in an attempt to try to get them to reflect on their own drinking behaviour. The website at the centre of the campaign went live last October. The ad campaigns supporting it will be rolled out this month in more than 12 countries, ranging from Taiwan to Columbia.

The campaign educates consumers in a disarming and witty manner about the noisy, irritating and sometimes aggressive behaviour excessive consumption can cause.

Through various channels, consumers are directed towards the knowthesigns.com website, where they can watch movies illustrating classic examples of inappropriate behaviour carried out by five inebriated archetypes: the crier, the groper, the exhibitionist, the sleeper and the fighter. “Obnoxious alter egos that can emerge after one-too-many, and are instantly recognised by our target audience,” according to Sandrine Huijgen, Global Communication Manager for the Heineken brand.

After watching the archetypes getting themselves into serious trouble, the video rewinds and a voice-over delivers the campaign’s pay off. “It could all have been different. When you know the signs, you’re going to have a great night out. Enjoy Heineken Responsibly.” Viewers are then invited to embarrass a friend by personalising an irresponsible archetype with a picture of their pal. “This personalisation tool should tempt people to confront their friends in a relevant and non confrontational manner, thus spreading the message further,” Sandrine said.

Research has shown that twentysomethings are willing to critically evaluate their own consumption of alcohol if challenged to do so in a manner that is not overtly moralist. The same studies have shown that consumers respect the fact that Heineken is promoting socially

responsible behaviour not necessarily in its own interest.

“That conflict should not be overstated,” said Melinda Eskell, Manager Heineken Brand Communication. “It is also good to

stress that as a premium brand, we value quality over quantity,” said Melinda.

The campaign is geared to fit the media consumption patterns of a new generation and its main communicative

platforms are web-based. “The interactive nature of web-based communication really gives our campaign an edge over what the competition is doing. It also increases the odds of the campaign having a significant effect,” Melinda said.

www.knowthesigns.com


36

earlier this summer, representatives

from The Brewers of europe met

with european Commission President

José manuel Barroso to discuss the

contribution europe’s beer industry

makes to the european economy and to

exchange ideas about future initiatives

within the sector. didier debrosse,

heineken President Western europe, and

Alberto da Ponte, the current President

of the association and managing director

of heineken's operations in Portugal,

attended.

Didier Debrosse (2nd from left) with Alberto da Ponte (3rd from left) and José Manuel Barosso (centre).

The delegation pointed out that the Brewers of Europe believe it is their duty to make sure that the sector’s advertising does not suggest inappropriate beer consumption. “Under the EU Alcohol and Health Forum, of which The Brewers of Europe is a founding member, we have committed to implement credible and effective self-regulation of beer across the European Union. We are also the main contributor to the EU Alcohol and Health Forum and takes our involvement very seriously,” says Mr da Ponte.

Heineken, which helped shape the association's policy on self-regulation, believes the promotion of responsible consumption is an important element in its alcohol policy. For example, since 2004 the ‘Enjoy Heineken Responsibly’ message has appeared on all bottles, cans and packaging of the Heineken brand.

Looking ahead, the parties discussed an initiative in 2009 that will highlight the European beer heritage. “We see the upcoming Czech presidency of the EU as an important opportunity to enhance our contribution to Europe. The Czech Republic is a flagship for beer. We are contemplating an initiative that would highlight the European beer heritage, and we would be honoured to have the support and patronage of Mr Barroso. We look forward to keeping him further informed on this initiative,” Mr da Ponte said.

[email protected]

Brewers of Europe meet with EC President Barosso

The brewing industry remains at the very heart of Europe’s economic and business environment. That was the message Alberto da Ponte conveyed to José Manuel Barroso during their successful meeting in August.

Mr da Ponte explained that the brewing sector generates 2.6 million jobs, directly and indirectly, and adds 57.5 billion euros of value to the European economy. “With more than 3,000 global and local breweries operating within Europe, Mr Barroso saw this combination as a positive contribution in the context of globalisation,” Mr da Ponte said. “In addition, the European brewing sector actively contributes to all priorities under the Lisbon agenda: jobs, growth, innovation and competitiveness, as well as environment and social standards.”

With many countries across Europe reviewing their social and legislative policies on alcohol use, another key topic during the meeting was self-regulation and responsible promotion within the industry. “Mr Barroso strongly encouraged brewers across Europe to actively contribute to enhancing self-regulation as a credible and effective alternative to restrictive alcohol policy legislations,” Mr da Ponte said. “The current European Commission doesn’t advocate unnecessary regulatory measures, but Europe’s brewers should take further leadership in this area,” he added.


37

The British Public House – A Cultural institution


38

The British Public House – A Cultural institution

The PuB’s dilemmAThe British have enjoyed a love affair with the pub—and beer, the pub’s most important commodity—since as far back as Roman times. Over the past few years, however, pubs have seen a steady decline in their annual beer sales, with changes in drinking habits, increased off-trade competition and the smoking ban all taking their toll. According to the British Beer & Pub Association, over 30 pubs in the UK go out of business each week. Add to the mix a downturn in the economic climate and an increase in beer duty, and the decline in the pub’s popularity can be easily explained. The question many in the industry are now asking is: where to from here? Some believe the answer involves a return to basics.

Ale iN The 19Th CeNTuryAt the beginning of the 19th century, pubs were the most important social venues for the working class man. As the country developed during the Industrial Revolution and its manufacturing output grew, beer drinking was seen as an important way of maintaining a healthy working class.

Around this time, some entrepreneurial pub landlords began looking for ways to expand their customer base. Many decided to open a second area in their pubs, known as the lounge bar, to attract those interested in being entertained while they drank. Offering singing, dancing or card games, the lounge bar was a hit, and pubs up and down the country began to divide the public bar from the lounge bar. The beer was more expensive in this new section, but for some in class-driven Britain this just added to the appeal.

By the end of the 19th century, the demand for beer had increased enormously. Keen to ensure drinkers remained loyal, and to gain a competitive advantage, breweries began signing agreements with pub landlords to sell their beers exclusively. Known as tied distribution, this form of one-brewery-only stocking transformed thousands of pubs around the country.

There are over 57,000 of them. They’re the

cornerstone of social life in towns, cities and

villages across the country. And everyone’s

favourite is known simply as the ‘local’. But with

fewer beer drinkers visiting them, is the great

British pub under threat?


39

Regional tastes developed as drinkers concentrated on the beers produced by their local brewers. The pubs that remained free to stock beers from any brewer were known as “free houses”, a term still used today.

Across the country, brewers were experimenting with different styles and tastes. Pale ales, such as Bitter, were highly popular. Brown ales, like Mild, were produced using darker barley malt. Both had an alcohol content of around six per cent, higher than that of today’s equivalent beers.

Another highly popular ale was India Pale Ale, developed by British brewers in the 18th century in response to the problems of shipping beer abroad. Prior to refrigeration and pasteurisation, the only way a brewer could conserve a beer was through the use of alcohol and hops. India Pale Ale combined both, producing strong-tasting ale characterised by a distinct bitterness.

ChANges iN driNKiNg sTylesBy the 20th century, however, drinking styles across the country were starting to change. British tastes began to match those of their European neighbours, and pub-goers were moving away from traditional ales towards lager. Lager went from being a minority beer in the 1950s to accounting for over 50 per cent of all annual beer consumption by the 1990s.

Until the end of the 1970s, beer consumption in Britain was growing at an annual average rate of two per cent. Peak consumption topped out at around 70 million hectolitres in the mid-1970s. Following a drop-off in the 1980s following a recession, beer consumption stabilised in the early 1990s at around 62 million hectolitres.

But it wasn’t just the taste of beer drinkers that changed—so did pub styles. Following a shake-up in legislation in the 1980s, brewers and pubs were forced to break off many of the tied deals they had in place. The government wanted drinkers to be offered a wider choice of beers when they visited their local.

The change in legislation coincided with a resurge of interest in ale, driven by the emergence of a group called the Campaign for Real Ale. This advocacy group sought to promote traditional ale, which they define as beer made from traditional ingredients, matured in the cask or bottle and served without too much carbon dioxide. In fact, one of their medal winners is Caledonian Brewery’s Deuchars IPA—a beer that’s now part of the Heineken portfolio.

CurreNT TreNds iN BriTAiN “The current state of the beer landscape in Britain is fairly mixed,” says Heineken’s UK Customer Marketing Controller Chris Duffy. “There are heritage brewers, a number of entrepreneurs, large brands like Heineken and niche players that tend to concentrate on speciality ales, as well as an increasing number of imported beers from all over the world.”

There are also a few traditional brewers that still have a number of tied pubs, as well as various large pub owners and some strong independent operators. “The evolution of the beer market in Britain has led to a diverse and demanding beer drinker,” says Chris. “Like the beer market itself, the demands of British consumers represent a challenge.” As he sees it, the British beer drinker has a considerably larger selection of beers to choose from than other European drinkers. In addition to a formidable selection of lagers and premium lagers, there is a wide range of bitters, stouts, mild beers and ciders on offer. “All of this adds up to a sophisticated consumer.”

Annual British beer consumption per capita is exceeded by only a handful of countries around the world that includes the Czech Republic, Ireland and Germany. However, unlike the Germans and the Czechs, who enjoy drinking beer in traditional bars and beer houses, the British are less discriminating about where they sup their favourite pint.

In addition to the wide selection of available beers, brewers also have to consider the diverse range of places where people in Britain can drink beer. The British beer drinker has a lot of options, says Heineken UK’s Senior Brand Manager Lucas Bergmans. “Just as one type of beer seems strange to the British drinker, so too their repertoire of drinking establishments is diverse,” says Lucas. “Although the number of on-trade licensed premises is dropping across Britain, there are still an estimated 141,000 licensed premises.” He notes that this has led to varied drinking venues and a demand from the consumer for more choice.

the times are changing in British pubs. consumers expect their local to offer them more than they traditionally have.


40

For example, in Britain there are currently over 45 lager brands to choose from. This compares to around 35 brand choices in Germany, or 28 in France. “British beer drinkers expect choice and diversity with no lack of quality in their drinking habits,” says Chris. “In addition, they demand a selection that includes standard and premium lagers, as well as cask ales and speciality beers.”

One way to tackle the sophisticated British market is to cater to different consumers at different times of the day. Many British pubs now offer food from early in the day until late in the evening, attracting people for brunch, lunch and dinner. “Pubs often match their offering to the occasion and time of day, to get around the need to provide different venues for different consumers’ needs,” Lucas comments. “For example, some pubs serve food throughout the day. Then in the evenings they will clear the tables away and change their look for a different crowd.”

PuB visiTorsIs there such a person as “the typical British

pub visitor”, then? The simple answer is that there isn’t. “The best way to deal with the British beer drinker is through the portfolio approach,” says Chris Duffy. “This enables us to provide a range of beers that meets consumer needs and ultimately delivers category growth and increased profitability for customers.”

Chris highlights a variety of situations the brewer and the pub has to contend with. “Consumers in Britain need a range of beers to suit many different occasions. For example, some are looking to wind down after work, while others are out to celebrate. Others want to drink premium lagers without a high alcohol content, and yet others are looking for traditional ales.”

Meeting the consumers’ expectations is paramount, says Lucas. He believes brewers need to be able to offer Britain’s beer drinkers a wide-ranging selection of high-quality products to satisfy demand. “As we combine Scottish & Newcastle’s strong portfolio with Heineken’s range, it’s clear

we’re in the unique position of being able to offer Britain’s beer drinkers the product they want, when they want it,” Lucas says.

The British pub has been resilient in the past and is having to adapt once again to a new set of social and economic challenges. Willie Crawshay, Managing Director of S&N Pub Enterprises, believes that the number of pubs in the UK will depend on their ability to adapt. “Only the best will adapt and prosper. We aim to be the best in community locals, providing good beer, a value food offer and traditional pub entertainment.” Elsewhere the emergence of gastro pubs and family pubs is demonstrating how excellent retail standards help to satisfy an ever more demanding customer.

[email protected]

British consumers are more discerning than ever when it comes to choosing a pub. Better beer from improved tap systems can often influence their choice.


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ice hockey: glory on the rink

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42

43

In many countries, national pride is born – or broken – on the ice hockey

rink. Through different brands around the world, Heineken sponsors the

sub-zero battle for glory.


43

rise oF slovAKiA, rise oF CorgoNAs the match entered its final seconds, Bondra moved into strike mode, while a team-mate scooped up the puck on the rebound. Bondra swiftly passed the final defender and launched the puck past the Russian goalie. The stadium shook. For the first time in its nine-year history, Slovakia was world champion.

“These are the most replayed ten seconds in Slovak television history,” jokes Roman Krajniak, Corporate Relations Manager for Heineken Slovakia. “They’re a defining moment for the nation. They proved that a small country like ours could be number one at something. At anything.”

In the nine long years before 2002, Slovakia had fought a long, uphill battle to break free of the lowest levels of international ice hockey. And the story parallels that of Corgoň beer. Corgoň was a small regional brand when Heineken acquired it in 1997, but Heineken wanted to reposition it as a mainstream national brand. This looked like a daunting task – until Heineken Slovakia entered into a sponsorship deal with the national ice hockey team in 1999.

The partnership rapidly bore fruit. “We got lucky pretty soon,” says Roman. A mere year later at the 2,000 World Championship, the Slovak team had its first major success when they met their neighbours (and archrivals) from the Czech Republic in the final. Unfortunately for the Slovaks, the Czechs won by a healthy two-point margin. Still, a silver medal at the World Championship was then considered a great achievement, and Slovakia celebrated.

“Nobody had expected the Slovak team to become so successful so quickly,” says Roman. The team was flown back in to the Slovak capital of Bratislava after the final match, where thousands awaited them on the city’s main square. The Corgoň flowed generously on that occasion: it represented a definitive take-off for sales, which continued to soar in the following years. This year, as the championship year came to an end, Corgoň’s market share had reached 13 per cent.

After a disappointing performance at the 2002 Winter Olympics in Salt Lake City, nobody expected the team to do well on its next outings. But then came a stellar performance at the World Championships later that year. “Victory came as a surprise,” Roman says. The resulting boost in Corgoň sales pushed the brand to the top of its league as well. In 2003 it became the best selling beer brand in Slovakia. “It’s a champion in its own right now,” comments Roman.

KArJAlA: Beer oF BuddiesHeineken is involved in ice hockey in markets all over the world, where beer and spectator sports go well together. The sport, which originated on Canadian university campuses in the late 19th century, has a reputation for being hard and fast. It is a natural fit with the brand image of local beer brands striving for national recognition.

on may 11, 2002 Peter Bondra wrote slovak history.

This small Central european nation, which had been

relegated to the lowest divisions of international

ice hockey less than a decade before, finally had a

chance to take its rightful place at the highest level

of international ice hockey. The exhilarating final of

the World Championships in gothenburg against ice

hockey superpower russia was tied 3 - 3, with a mere

two minutes left on the clock.


44

Finnish Karjala beer is a good example of what beer and ice hockey can mean to each other. The brand had gone through a rough spot in the late 1980s and early 90s, when it suffered from a negative image, with Fins considering it to be the less cosmopolitan choice among beers, and sales were declining accordingly. By the early 1990s, market share had plummeted from 27 per cent in 1988 to just five. “The only thing keeping us afloat was our sponsorship of the national team,” says Harri. But when the Finnish won the world championship in 1995 by defeating the Swedes 4 - 1, it gave the brand a much-needed boost. The moment proved pivotal in the brand’s history. From 1995 onward, the brand began to recover.

“One could even say that Karjala owes its existence to ice hockey,” says Karjala brand manager Harri Rajakaltio. In 2003, the brand released a special ice hockey edition, Karjala Championship Beer. Karjala centred its new branding strategy around some of the positive elements that define ice hockey: the social and the masculine. “Adult male bonding became the centrepiece of our public image,” says Harri. “And ice hockey was our method of putting that message out there.” As a part of the new strategy, Karjala introduced its own international tournament. As a result, ice hockey fans today see the name of the beer brand as being synonymous with the annual joust held in November between four ice hockey giants: Sweden, Norway, Finland and Russia. The strategy has proved a success. “We took the negative associations people had with the brand and really turned them around,” says Harri.

NexT sToP: sWiTzerlANdIce hockey fans around the world, Harri included, are eagerly anticipating the upcoming World Championship in Switzerland, which will kick off in the spring next year. While Heineken is not sponsoring the World Championship, Switzerland is perhaps the place where Heineken is involved in ice hockey the most. Through its Calanda brand, Heineken sponsors three teams

in A and B leagues. Anticipating a rush of ice hockey fans from around the world to his country, Patrik Widman, Calanda’s Brand Manager, is looking for ways to increase Calanda’s visibility. “Some of the matches will be played on the ice rinks of clubs that Calanda sponsors,” says Patrik. “Still, we are looking into other activities that will show that Calanda is the beer of real fans.” Calanda already has put out scratch cards featuring a picture of a hockey puck to bars and cafés around Switzerland.

Of course, Calanda – like all Heineken brands - does everything it can to encourage a responsible approach to drinking alcohol. As one of the world’s leading brewers we take our responsibility to inform people about responsible consumption very seriously and increasingly, all our sponsorship activities worldwide carry a responsible drinking message too.

While promoting the responsible consumption of Calanda is a high priority for Patrik professionally, a Swiss victory is of course at the top of his personal wish list. The Swiss have one of the strongest club competitions in the world, but they have never won a gold medal at the World Championships. Meanwhile, the Fins and the Slovaks also believe that their teams have a chance of winning the grand prize. By April next year we will know whose faith was justified.

[email protected]

“In 2003 Corgon became the best

selling beer brand in Slovakia.

A champion in its own right.”

ˇ


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TreNds & iNNovaTioNsTreNds & iNNovaTioNs

The poll, conducted annually since 1992, had shown a steady increase in wine’s popularity as the favourite alcoholic beverage amongst drinkers at the expense of beer during the 90s and 00s. In 2005, for the first time, more drinkers reported preferring wine than beer.

Since then, the trend has been reversed, with the latest data showing beer with an 11-point advantage over wine. This development can be chalked up mainly to an increase in popularity of beer amongst consumers aged 30 to 49, of which almost half now say they prefer beer.

Younger Legal Drinking Age* (LDA) drinkers are still much more likely to drink beer than

wine or liquor, while wine is the preferred beverage of older drinkers (age 50 plus).

Dan Tearno, Chief Corporate Relations Officer for Heineken USA, says the poll confirms that beer is still king in the US. “Despite increasing competition from wine and spirits, the consumption gap between beer and other alcoholic beverages is widening.” Dan said. “As we mark the 75th anniversary of the repeal of Prohibition in the U.S., we can, despite the economic challenges we face, celebrate a healthy industry for the nation’s brewers and importers.”

Eric Shephard, Executive Editor for Brewers Marketer’s Insights, a leading U.S. industry

Better times for beer in the USBeer is back, according to the renowned US polling organisation Gallup. A recent study by them shows that beer is gaining on wine and liquor in the US as the preferred alcoholic beverage.

newsletter, offered, “These are indeed better times for beer. In terms of absolute alcohol consumed, beer definitely makes up the lion’s share. Currently 54.4 per cent of all alcohol consumed in the US comes from beer.”

According to Eric, who has been reporting on the beer business for 32 years, the development is mainly a reflection of beer’s increasingly positive image. “It is an interesting question if the larger beer brewers and importers will be able to harness that phenomenon, as large wine houses have done in the past,” Eric said.

www.gallup.com

Do you most often drink liquor, wine, or beer?Based on U.S. adults who drink alcoholic beverages

GALLUP POLL

% Beer % Wine % Liquor

1993 1995 1997 1999 2001 2003 2005 2007

27

21

29

18

27

20

32

18

34

1922 22 22 2224

2118

31 31 3033 33

3633

23 23

3431

47 46 4542 43

4644

4239 39

41 4042

47

* the legal drinking age in the US is 21 years or older. This is according to federal law.


46

Amstel Pulse sets new standard for beer bottles

What’s inside the bottleAmstel Pulse is a smooth, easy to drink premium lager with an invigoratingly fresh taste. Amstel Pulse is specifically brewed to be enjoyed with ease.

Modern and innovative award winning packaging

Alcohol 4.7% ABVBitterness 12 EBUColor 7 EBC

ABV is the percentage of alcohol measured by volume. The bitterness of a beer is measured on the European Bitterness Scale (EBU), and is determined by the amount and kind of hops used to brew the beer. Guinness scores well above 45 while lagers generally clock in around 20. EBC is the European Brewer's Convention colour intensity scale which is measured by passing green light through a sample and determining how much is absorbed. Most blond beers register below 12.

The Amstel Pulse bottle is transparent, stylish and simple. It is the design the jury of the prestigious Cannes Advertising Festival awarded with its first ever award for packaging.

The Cannes jury selected the Amstel Pulse bottle from more than 1,000 entries from around the world. “A once in a lifetime experience,” is what Packaging Design Manager Richard Grosmann called the award ceremony held this summer, celebrating the brand team’s achievement.

Richard worked closely with packaging design Agency VBAT to design the new bottle for Amstel Pulse. “Building a new global product from the ground up is a rare opportunity indeed,” Richard said. “One that I enjoyed immensely.”

Amstel Pulse fits with the innovative nature of the Amstel Brand and taps into the global appreciation for more accessible and less bitter premium beers. Research by Amstel marketers has shown that there is a huge potential amongst 25 to 35 year

olds worldwide for this type of premium proposition. Amstel Pulse tries to cater to this demographic.

The design of the bottle is intended to reflect the smooth and accessible nature of the beer it contains. “The logo is a minimalist version of the original Amstel logo, which has a long history,” Richard said. “By reducing the amount of visual clutter on the bottle we have given the bottle a slicker feel.”

Grosmann and the VBAT designers drew inspiration from a visit to the old Amstel brewery in the historic centre of Amsterdam, just minutes away from the first Heineken brewery. “We felt it was important to connect with the beer’s 136-year history before deciding how to move on,” said Richard. “The old brewery was definitely the place to do that. The smell of beer still lingered and

we found a couple of bottles decades old,” Grosmann said.

While the new Amstel Pulse Bottle might seem modernist with its minimalist features, it is also part of a long tradition. “The brand has a history of innovation in the packaging department,” Richard explained. “Amstel was the first Dutch brewer to start exporting its beer in cans in 1955.” Amstel Pulse has been introduced in 10 countries so far with several more to follow this year. Amstel Pulse has only recently been introduced recently in most countries, but it has already sold more than 500,000 hectolitres.

[email protected]

From left, Richard Grosmann, Eugene Bay and a jury member at the ceremony.


47

TreNds & iNNovaTioNs

Heineken Experience Reopens

Situated on the edge of Amsterdam’s seventeenth century historic district, the Heineken Experience’s exterior bears silent witness to the long history of the Heineken brand. The façade of the original brewery, built in 1868, still stands, flanked on both sides by the sleek art deco expansion that was added to it in 1930. These historical exteriors still proclaim, in larger than life lettering, that a brewery lies within. A neon-sign in the middle, lining a recently constructed glass door entrance, betrays the building’s new function as one of Amsterdam’s biggest tourist attractions.

Every year, close to half a million tourists from around the globe flock to the Heineken Experience, were the Heineken brand was born so long ago. Gerard Adriaan Heineken’s mother laid the first stone of the building in 1867, a mere three years after her son founded the company.

This November, the Heineken Experience reopened after an extensive renovation carried out by the company that also designed parts of Disneyworld, NASA’s Cape Canaveral and Universal Studios theme parks. The result is a one-and-a-half hour wild ride

that teaches visitors all about how Heineken is made. The Experience is exactly what the name implies, engaging all the senses in the process. Visitors can taste hops and barley, feel the heat that is used to cook the wort and sniff up the smell of malt that used to linger around the neighbourhood when the brewery was still up and running.

“I still remember that smell. It left no doubt to what was going on behind those walls,” Harry Philippa recalls. Harry is one of the few people involved in the Heineken Experience who can still recall the time that the brewery was still functioning. Today Harry is manager of Heineken Internal Services. As the original brewery’s last controller, he oversaw its demise in 1988. It was Freddy Heineken himself who paved the way for The Heineken Experience. Rather than selling off the brewery, which his grandfather had constructed, he decided to change it into a welcome centre for corporate relations, which would evolve into the Heineken Experience in 2001.

Still heavy with history, the Heineken Experience today holds a middle ground

between the times past and modernity. A beer draughting robot, used by Heineken scientists to measure the qualities of brews is on display, side by side with the trowel used by Gerard Heineken’s mother to lay the first brick in the nineteenth century. Visitors can tape their own souvenir videos and email them to friends on special terminals, but also check out historic Heineken ads from times past. A small menu from a 19th century hotel recalls a time that Heineken was sold for 6 guilder cents a bottle, while a video wall celebrates the long-time sponsorship of the UEFA Champions League.

A fitting combination, says Harry, for a brand with a distinguished history and a bright future. “Heineken was born in Amsterdam, and raised by the world. The story we tell here, is one that has not yet come to an end.”

www.heinekenexperience.com

The Heineken Experience in Amsterdam reopened for business after months of renovation. The Heineken theme park evokes the past and embraces the present.


48

Close cooperation between Heineken and the Dutch-based filtration and purification specialists Norit NV has produced a new filtration system using a micropore membrane filtration system that is set to become the industry standard in the years to come.

Heineken’s Manager Research & Innovation at Group Supply Chain, Lex Ronteltapsays “unlike, for example, in a coffee filter, where the pores are easily clogged, we use what we call cross-flow filtration by keeping liquid flowing over the membrane at high speed,” Lex explains. “In this way, you can keep the pores open allowing for a more efficient filtration process with the yeasts and proteins staying behind, and a clear beer filtering through.”

Highlighting the benefit of the new technology, Lex says that in a traditional filter, you are left with a mix of the proteins and yeast you have removed from the beer. An added bonus is that the cost of the membranes is relatively low and they can be re-used.

“One of the development challenges was to clean and regenerate the membranes after a filter run. The breakthrough in the research with Norit was to find a cleaning agent that could effectively clean the membrane. In spite of the use of cross-flow, over time (15-30 hours), there is still inevitably some fouling that occurs from deposits building up on the membrane,” says Lex. “Once a detergent was found that could regenerate the membrane to its original state, we could

New membrane to revolutionise beer filtrationA new development in filtration technology, pioneered by Heineken, promises to benefit sustainability and reduce costs.

start producing the membranes on industrial scale, and start the roll-out.”

Membrane filters have already been installed in three Heineken breweries, namely Madrid (Spain), Warka (Poland) including a recently installed extension, and Craiova (Romania). “The fact is that you can’t just keep an innovation like this to yourself, so our technology has also shown its impact on the industry at large by being been installed in 15 non-Heineken breweries.” He points out that as Heineken and Norit jointly own a number of crucial patents in the technology, Heineken will also benefit if competitors use it.

[email protected]


49

Caves Wengler and heineken ‘dating’ for 30 years

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Caves Wengler and heineken ‘dating’ for 30 years

Heineken’s partnership with Caves Wengler, a Luxembourg based

family business, dates back to 1978 and is still going strong.

Gérard Wengler, who is the fourth generation to run the business,

takes a trip with us down memory lane.

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Proud To sigN oNIt was a good instinct: Heineken shared the Wengler vision. On the 5th of June 1978 Gérard went to Amsterdam with his father and uncles Paul and Edmond to sign the contract with Mr Freddy Heineken himself. “I was 25 years old at the time. I clearly remember that my father was very proud to meet Mr Heineken in person,” says Gérard.

Beer loviNg NATioNThe match worked well, also because Luxembourg is a beer loving nation well able to appreciate a fine brew. “Luxembourg has a fair number of beer breweries, given its tiny size.” says Damian Dabkowski, Heineken Manager Export & Licenses for the Western Europe region. The principality has a population of around 440,000 and a total beer consumption of 370,000 hectolitres a year. There are two main local brewers, but Heineken® is the leading imported premium beer brand in Luxembourg, with a market share of more than 2 per cent. “The market share of Heineken® has increased steadily since Caves Wengler became the sole distributor. This is quite an achievement, given that annual per capita beer consumption in Luxembourg has fallen from 120 to about 85 litres over the last few years.”

sTill groWiNgCaves Wengler aims at an annual increase of 10 per cent to 15 per cent a year for Heineken®, in both volume and turnover, says Gérard. . “Heineken® is our number one selling brand in terms of volume. We cover 100 per cent of Luxembourg’s supermarkets and fuel stations, and 90 per cent of all restaurants. We reach the bars and bistros via our wholesale business. We also have some 6,000 customers.” Internet sales have started to become more interesting recently, he adds. The firm mostly offers bottled beer, but five litre Heineken® DraughtKegs are available from the web shop.

heArT oF euroPeLuxembourg, while not an obvious choice at first sight, is clearly a strategic market for Heineken. “It’s not one of our largest export markets but it’s a very suitable market for us,” says Damian. “Luxembourg is situated in the heart of Europe, and bordered by big beer-loving countries Germany and Belgium, as well as France, famous for its wine. The Luxembourgers have a tradition of eating out and they take time for business lunches or dinners at bars and restaurants.” The principality also hosts many expats because the city of Luxembourg is the seat of several institutions and agencies of the European Union.

Luxembourg is also very popular amongst nature-loving tourists and cross-border shoppers, who take advantage of lower petrol prices, he says. As the exclusive distributor to petrol stations in Luxembourg, Caves Wengler therefore helps Heineken® to reach cross-border shoppers. All of those factors combined make Luxembourg an interesting beer market for Heineken.

“ “our partnership with heineken started because my father, Albert Wengler,

liked the quality of the beer and its reputation. he wanted to become the

exclusive distributor of heineken® in luxembourg. he was convinced that

heineken® and Caves Wengler would be a good match. it is the premium

beer he was looking for to match our offering of premium wines, champagnes

and spirits. my father was very determined and said: ‘i only want heineken, no

other beer.’”

“My father was very determined.

He said: ‘I only want Heineken, no other beer.’”


52

heiNeKeN heArTDamian has been working with Gérard for more than three years, and he enjoys meeting him at the firm’s elegant chateau. “The amazing setting of the Wengler headquarters, combined with the family business atmosphere, makes you feel at home straight away. Gérard is a real specialist who takes his time to advise his clients on their purchases. He doesn’t distinguish between large purchases of the most expensive champagne or small ones of a few cases of Heineken®. I can honestly say that he has taken Heineken into his heart. To celebrate our thirty-year partnership, we have invited Gérard and his colleagues to come to Amsterdam to visit Heineken.”

CAves WeNgler hisToryThe “Wengler Empire” started in 1897, when Gérard’s great-grandfather, Pierre Wengler founded the company. Pierre Wengler was a farmer who produced his own wine and juices, as well as distilled spirits, and sold them to restaurants. He also had his own establishment. “When my grandfather Jean-Pierre took over, he decided to give up farming. It was he who built the trademark château, which we still use as our office, our shop and for events. And it was built on the grounds of the original farm.”

After Jean-Pierre’s retirement, his sons Albert, Paul and Edmund continued the family business. In the 1960s Gérard’s father, Albert reoriented the company. He stopped in-house production and Caves Wengler became a distributor and importer of premium brands. “My father died in 1981 and at the same time his brother Paul retired. I’d started working for the company in 1975. For many years I ran the business with my uncle Edmond and my mother Tilly, until I

bought all the shares in 1992 and became the sole owner. I hope that one of my daughters, Charline or Céline, or maybe even both, will take over the business one day.”

Gérard says that he was “married to the job” for many years, and was late in becoming a father. “I hope that I will keep my good health long enough to help them run the business.”

uNder PressureDespite the obvious match with Heineken®, Gérard says that it is not easy to sell beer in Luxembourg. “The Luxembourg beer market has been under pressure for a few years now. We are very proud that we have managed to keep our sales stable, compared to 2007, given the rainy summer we had this year. In fact, we hope to show a gain in sales at the end of the year.”

His view of replacing the traditional export bottle with the Heineken® longneck bottle with clear plastic label, has helped sales. “Our customers love the new longneck,” he says. “It has a more luxurious feel to it that makes it fit in even better with our other premium brands.”

ToAsTHeineken®’s match with the firm’s other premium brands is demonstrated time and again at the tasting events they organise, to which around 400 people are usually invited. “Afterwards, people often ask for a bottle of Heineken®,” says Gérard. “And when I’m thirsty, I’ll also open a bottle of Heineken®. So I’d like to toast to our fruitful relationship with Heineken, which I hope will continue for many years to come.”

Salesforce Wengler: From Left to right:Bernard,Frédéric,Dominique,Armand,Raymond and Rui.


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54

Bond and heineken join forces once again

More than half a century ago, Ian Fleming released his first

James Bond novel, Casino Royale. From these humble beginnings,

James Bond has grown into a truly global phenomenon.

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Quantum of Solace © 2008 Danjaq, LLC, United Artists Corporation, Columbia Pictures Industries, Inc. 007 Gun Logo and related James Bond Trademarks © 1962-2008 Danjaq, LLC and United Artists Corporation. Quantum of Solace, 007 and

related James Bond Trademarks are trademarks of Danjaq, LLC. All Rights Reserved.


“Enter the world

of Bond,” is the

main message

behind the global

campaign.

The release of Quantum of Solace earlier this month, marked the 22nd edition of the James Bond franchise, which has grossed more than $4 billion at the box office in its 46-year history. Unsurprisingly, most people have at least a passing familiarity with the character that sprouted from Fleming’s imagination so long ago. It is estimated half the people in the world have seen at least one James Bond movie. Research has shown that the 007-logo is one of the most recognised symbols in the world, just behind the Olympic rings and the UN-logo.

heiNeKeN ANd BoNd: old FrieNdsHeineken® has been an integral part of Bond history for more than a decade now, with Tomorrow Never Dies (1997) being the first Bond movie sponsored by the global beer brand. EON, the family-run production business owned by the Broccoli family, whose name has been intrinsically linked with the James Bond movies from the very beginning, approached Heineken shortly before the 18th Bond movie went into production. “Heineken and the World of Bond are a credible partnership,” says Christopher Carroll of Heineken International. “Both brands are internationally desired and promote shared themes of premiumness, style and being clever.” Much like the Bond franchise itself, the partnership has since evolved into a worldwide marketing platform, says Christopher. “When it comes to assisting the brand

driving sales and brand preference on a global scale, within the world of film Bond has few equals.” The Quantum of Solace campaign, which kicked off more than a month ago, is looking to have the most impact of all the Bond-Heineken team-ups so far. Heineken plans to roll-out Bond promotions in an estimated 50 countries, across all available media.

mAKiNg AN Ad BeFiT A BoNd movieThe centrepiece of the new campaign is a 45-second commercial which will be screened worldwide in movie theatres, through the internet and on television. The plot: Our hero, a stylish 28 year-old minding his own business, goes into the supermarket to purchase his favourite beer. When he picks up a promotional pack of Heineken®, he slowly enters the World of Bond. The cashiers at the checkout change into Bond girls. Coming back from the supermarket, our hero’s house transforms from a white picket fence home into a Bond-villain style lair. (True fans will instantly recognise a tribute to Dr. No’s shark infested digs.) Finally, as our hero moves deeper into the den, he stumbles into a key scene from Quantum of Solace. The party with James Bond is underway, and Camille (the latest leading lady, played by Olga Kurylenko) is beckoning…for a beer – a Heineken®! The transition, from a supermarket in a Dutch suburb to the Bond movie footage shot in the Central American nation of Panama, is flawless. But while this might seem effortless on screen, the reality of


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“Heineken and Bond are a natural match:

stylish, classy and internationally recognised.”


making it was quite the opposite, says the commercial’s director, Keith English. Firstly, Keith and his crew had

to transform an ordinary supermarket into an action-packed Bond set. The change is immediately apparent from the moment the lead-actor picks up his Heineken® six-pack and strolls down the aisle. The secret: Bondesque music, different body language on the part of the actor and a bluish shade of light. “Changing the lighting took almost a whole day, but the transformation was really quite startling,” Keith recalls.

The “secret lair” setup is actually a 1:8 scale representation of the real thing, meticulously designed by specialist modellers. The actor moving through it was cut into the set in postproduction, meaning he had to do most of his acting in front of a blue screen. “Our lead actor was often reacting to stuff that did not exist in reality. Sometimes, he would be responding to bits of blue screen or crosses drawn on sticks as temporary sight-lines,” says Keith. For the final scene of the ad, our hero slides up to the bar where the leading lady Camille is waiting for him with two bottles of Heineken®. For these shots the

crew had to rebuild the actual bar as it can be seen in Quantum of Solace. “There were quite a number of difficult scenes in the commercial as it was all quite complex – from matching existing footage to the stuff we shot, to creating outlandish apartment sets on miniature scale – all of them made us work for our living,” says Keith.

eNTer The World oF BoNd The ad ends with the campaign pay-off: “Enter the World of Bond.” The main message behind the campaign Christopher explains: “Heineken provides access to this aspirational world: the World of Bond.’’ Heineken’s main campaign tool is its direct association with the primary features of the World of Bond: actor Daniel Craig and leading lady Olga Kurylenko. Consumer research shows that Heineken® belongs and is associated with Bond’s world. In the ad, Olga chooses our hero over 007 to enjoy a Heineken with. As Olga herself puts it: “Movies make us dream. That is why we make them.”

The commercial is currently being broadcast on TV in more than 20 countries, from China to Chile. It is also available through the Internet and can be seen at movie theatres in several countries also.

[email protected]


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WhAT:

The above image of the waiter bringing a glass of Heineken beer was always accompanied by the slogan "your Heineken sir". The opposite ad promoted a new Heineken label introduced for the Dutch market. It was accompanied by campaigns with the new slogan "the most popular draught beer everywhere".

Where:

The campaign featuring the waiter was originally destined for the Dutch market but also featured in the French and US markets.


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WheN:

The image of the waiter was first introduced in 1948.The ad campaigns promoting 'modern and worldly’ images such as the “most popular draught beer everywhere” dates from the late 1950s.

Who: The waiter campaign was created by the Dutch advertising consultants Palm and the image of the waiter was designed by Eppo Doeve.


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Events

Bulmers plants new orchards December 2008 and onward

Herefordshire, England

Bulmers Cider will plant the first of 400,000 apple trees it will propagate over the course of the next three years this December.

More than 60 local farmers are seeking 25-year contracts with Bulmers to maintain the new apple orchards that the brewer needs to supply the growing demand for cider.

The apple varieties that Bulmers uses, such as the Hastings and Amanda, are the result of two decades of research. Bulmers has a long history in the Herefordshire region, which is particularly suitable for growing apples due to its climate and rich topsoil. Some of the farmers in the region have been working with Bulmers for four generations.

Annual results presented February 18, 2009

Amsterdam, The Netherlands

Another fiscal year will go down in the books as Heineken presents its annual results for 2008 to press, analysts and the public. The presentation will take place at the Heineken Experience in the Koelschip where the beer used to be cooled, on the 6th floor.

Heineken first published its year results in 1939, shortly after its initial public stock offering, making this the 69th time that Heineken accounts to its shareholders.

www.heinekeninternational.com

Heineken sets new sales record December 31, 2008

Brazil

With mere weeks left this year Heineken is poised to report record annual sales in the Latin American nation of Brazil. The brand has benefited greatly from a premium repositioning three years ago, and sales have been skyrocketing ever since. When this magazine went to press, sales had already surpassed last year’s, reaching their highest level since 1990. The turnaround for the brand came in 2006 when Heineken introduced premium marketing and a 60cl bottle, a more familiar form of packaging for Brazilians.

“Brazilians like extremely light beers, so full-flavoured Heineken occupies a niche market here,” says Herbert Gris, Marketing Manager for International brands in Femsa Cerveja Brasil, Heineken’s local operation. “Still, the sheer size of the Brazilian market and the fast development of the premium segment means that we can grow even more.”

[email protected]


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Even

tsSt Maarten Heineken Regatta05-08 March 2009

St Maarten, the Caribbean

The Caribbean isle of St. Maarten is preparing for the 29th running of the Heineken Regatta. Heineken is once again the event's main sponsor, having renewed its contract last year.

The Regatta, now an international yachting event, started out as a modest boat race with a mere 12 participants in 1980. This year, almost 300 boats crewed by 3,000 sailors will contest the event in the warm waters of the Caribbean. The parties thrown in celebration of the Regatta are perhaps as legendary as the race itself.

www.HeinekenRegatta.com

Hahnenkamm ski raceJanuary 23-25, 2009

Kitzbühel, Austria

The small Tyrolean town of Kitzbühel – population 7,000 – prepares for the annual invasion of 100,000 ski fans for the Hahnenkamm ski weekend. Heineken-owned Gösser, the most popular beer in Austria, is the event’s main sponsor. The three day event features three alpine ski disciplines: the so called "Super G" - a high speed slalom, the downhill race, and the slalom.

Kitzbühel boasts a surprisingly high number of pubs for a town of its size: more than 30 altogether.

www.hahnenkamm.com

The People’s Darts ChampionshipJanuary 11, 2009

Frimley Green, England

Two of the UK’s best amateur dart players will face off at the prestigious Lakeside country club, just minutes before the start of the BDO World Professional Darts Championships, sponsored by John Smith's.

The two contenders will be the last men left standing after several rounds of knock-out competition between the finest darters fielded by over 4,000 British pubs. The People’s Darts Tournament, as the new event has been dubbed, is modelled after the wildly successful People’s Race, which will be held for the third time next year. The People’s race gives amateur equestrians the opportunity to compete on the Aintree racetrack, just before the Grand National is held at the same location.

www.johnsmiths.co.uk/peoplesdarts


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A Touch of Madness

Roka Lounge

Blues

Sophiatown

Medium Rare

The Cape Town Ritz Hotel


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BluesThe Promenade, Victoria Road, Camps Bay, Cape Town

Tel: +27 (0)21 438 2040 | www.blues.co.za/blues/index.html

Some places are beyond ordinary appreciation, their consummate

beauty as timeless as the ocean. One of these places is

undoubtedly Camps Bay Beach, as seen from the patio of Blues.

One of the trendiest establishments along this stretch of some

of Africa’s most expensive real estate. Blues has recently been

remodelled and now also features Baraza, an exclusive sundowner

haven and a meeting place set in tranquil surroundings. A drink

or a meal at this place will very likely be unforgettable, so make

sure you share it with some of your favourite people. If this is what

having the blues is about, bring it on!

Roka Lounge44 stanley avenue milpark | Tel: +27 (0)11 4822038

Fax: (0)11 482 6313 | www.rokalounge.com

Somewhere between fantasy and desire lies the perfect pub, where you can be yourself in good company: Roka. A platform for new talent – from singers to djs, musicians to poets, this club-pub rewards the visitor with a variety of experiences. Roka is where young media professionals from the nearby South African Broadcasting Corporation like to relax, so here you can mix with the stars, under the stars. People are too sophisticated to ask for autographs though, and ordinary folk can simply blend in with the celebs. That’s the way we do it in Afrika. Cool. Cool as Heineken®.

The Cape Town Ritz Hotel

Main Road, Sea Point, Cape Town | Tel: + 27 (0)21 439 6010

www.africanskyhotels.com

The Ritz is the place for a new perspective. It’s situated on

the 21st floor of a highrise in grungy, fashionable Seapoint,

and on a clear day you really can see forever. And there’s

an extra treat in store: this place is one of the country’s last

revolving restaurants, so you can enjoy a three-sixty degrees

view of sea and mountain as you enjoy a Heineken®. The

majestic splendour of the sunlight carpeting the waves and

the Afropolitan atmosphere make this place a must for any

knowledgeable visitor – and quite a few locals too.

Medium RareShop 22 Bedford Village, van Buuren Rd, Bedfordview

Tel: +27 (0)11 455 6495

This place prides itself on being the “Cheers” of Bedfordview, says manager Graig Paolini. An independent bar and steakhouse, his establishment attracts a loyal crowd of yuppies from the neighbourhood, and many word of mouth patrons from America and Europe. The secret? Great food – and great service. “We make great steaks,” Paolini explains. “And we know our customers by name.” In South Africa, great meat and Amstel belong together, and you’ll certainly get both here. Being independent, Medium Rare is free to source its meat from special suppliers; steaks are prepared the way the customer likes best. Open Monday to Saturday from 10.30am till midnight and 10.30 to 5pm on Sundays.

Sophiatown1 Central place Newtown, JohannesburgTelephone +27 (0) 11 836 5999

Opened a year and a half ago by two twenty-something Soweto workaholics, Sophiatown is named after the famous cosmopolitan neighbourhood that generated some of the country’s classic music and literature. Appropriately, this bar-restaurant has become one of Jozi’s main platforms for live bands, as well being home base for many an inner-city party animal. The décor is African chic, and the brazier-warmed boulevard, where you’ll be rubbing shoulders with the slick professionals of Africa’s New York, is always full to overflowing. Thursdays are hosted by well-known Kaya fm DJ and world music fundi, Nicky B, Saturday nights are devoted to live music. The menus offer a range of light meals and hearty African dinners, including venison. This is the rainbow soul of Newtown, and a good place for a chilled Heineken®. Open seven days a week.

A Touch of Madness12 Nuttall Road, Observatory | Cape Town, Western

Cape | Tel: 021 448 2266 | www.cafeatom.co.za

This restaurant, located in a traditional colonial house,

describes itself as a “Victorian Quaffery”. It boasts two

dining rooms, separate bar and lounge zones, as well as

a tranquil courtyard, where you can enjoy a cold Amstel

at your leisure. The menu offers a range of classics,

such as slow-roast lamb, and African fusion food, such

as Kudu loin fillet. The ambience is a truly Capetonian

crossover of colonial and African style, and they really

like to treat their guests well here. On Thursday and

Sunday evenings, they have live music of the folk,

bluegrass, or Irish persuasion, which makes the place

just right for a night out with friends.

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