ntroduction and key facts

Heineken is one of the world's leading brewers. Its flagship brands are the eponymous Heineken and Amstel, with the former accounting for around 20% of volume sales. Europe is Heineken's main market, accounting for an estimated 40% of profits. The company is the regional leader in beer, with Germany, France, Spain and Italy key markets. The US is another major sales area as is Nigeria. Overall, the company is active in over 170 countries worldwide.

Heineken NV: Key Facts
Company name & status: Heineken NV
Headquarters: Netherlands
Sector involvement (2004): Dark beer, Lager by origin, Lager by price platform, Non-/low-alcohol, Stout
Region involvement (2004): Western Europe, Eastern Europe, North America, Latin …show more content…

Among the largest have been SABMiller's acquisition of Colombia's Bavaria and Heineken's investments in Russia, where it procured four local brewers in the space of a year. China has also witnessed considerable investment activity, including InBev's purchase of the country's eighth largest brewer, Fujian Sedrin, and Anheuser-Busch strengthening of its relationship with market leader Tsingtao.

Another major trend in global beer, which is linked with the race for emerging market assets, has been industry consolidation. Returning to the creation of InBev, following this move, the marketplace has witnessed further major deals, including the merger of Molson and Adolph Coors to form Molson Coors, and Scottish & Newcastle's buyout of the European rights to the Foster's brand.

As a result of the consolidation trend, the leading players have become increasingly isolated at the top of the beer tree, with InBev and SABMiller looking particularly strong, whilst Anheuser-Busch clings on in the face of its domestic troubles and Heineken struggles to keep up, despite notable non-developed market investment.

Global Sales of Beer: Volume and Value Trends 2000-2005

2000 2001 2002 2003 2004 2005

bn litres 136.1 139.9 143.3 146.5 151.2 155.2
% growth - 2.8 2.4 2.2 3.2 2.7
US$ bn 349.9 340.9 347.3 384.1 418.3 439.4
% growth - -2.6 1.9 10.6 8.9 5.0
Source: Euromonitor International

Global Sales of Beer: % Total Volume