Market cap

* For banks, enterprise value is substituted with market cap. Source: Bloomberg Finance L.P.

Performance of the brand

Heineken’s 2011 brand performance was significantly boosted by its takeover of FEMSA breweries in April 2010. The acquisition has significantly altered Heineken’s international footprint giving the company a lot of exposure to the Latin American market (FEMSA is Mexico’s 2^nd largest brewery). This has helped to offset poor financial results from a sluggish European market, which saw beer volumes fall in 2010.

On the other hand, the deal has put Heineken in a substantial amount of debt. In addition to the higher interest expenses that may result from this, the company's ability to obtain additional financing to fund future working capital, capital expenditures, and acquisitions will be curtailed.

Though the brand makes a lot of its profits from exporting to small high growth regions, Heineken has always been heavily invested in Western Europe. Almost 4 in every 10 Heinekens produced are sold in the region. Not only is the European market for beer in decline, but on-trade sales are performing much worse than off-trade sales, meaning that more people are drinking at home. In the UK, 50% of beer is bought for drinking at home. Molson Coors, a brewer, forecast that by 2018 the figure could be closer to 70%.

In times of crisis, the Heineken brand rarely compromises its premium position by offering price promotions. Instead, the company has responded to the rise in off-trade with changes to packaging. Recently, Heineken brought a limited edition, glow in the dark, aluminium bottle to market in an effort to boost margins, whislt maintaining its premium position. The Heineken STR Bottle has already won numerous awards in those countries which it has been introduced.

Continued involvement in major sporting events is still helping to enhance the company's visibility and popularity. Heineken has been the official sponsor for every Rugby World Cup to date, and is also the main sponsor for rugby's Heineken Cup. This kind of sponsorship has continued to reinforce an individual identity for Heineken (it is often referred to as the "Rugby Beer").

 

 

Last changed September 9, 2011

League tables

Heineken appears in the following brand league tables:

Rank 274 in the Global 500 2012.
Rank 7 in the Netherlands 50 2012.
Rank 75 in the Global 500 2011.
Rank 7 in the Netherlands 50 2011.
Rank 75 in the Global 500 2011.
Rank 64 in the Global 500 2010.
Rank 43 in the Global 500 2009.
Rank 65 in the Global 500 2008.
Rank 85 in the Global 250 2007.