Heineken Nv · EURONEXT:HEIA
Heineken Nv — Heineken Financial Markets Conference 2013, Mexico City
29 slides from Heineken Nv's conference presentation, Dec 5, 2013
Slide 1: HEINEKEN Americas: Winning with Brands
HEINEKEN FINANCIAL MARKETS CONFERENCE 2013 MEXICO CITY HEINEKEN Americas: Winning with Brands PETER HALL Regional Marketing Director Mexico City | December 5-6, 2013 | Heineken NV
Slide 2: Agenda
AGENDA HEINEKEN Americas: BRANDS AT THE CORE Winning with Brands Heineken® AND GLOBAL BRANDS DRIVE PREMIUM REGIONAL POWER BRANDS FOR NORTH AMERICA BRAND BUILDING CAPABILITIES 2
Slide 3: Brand Building a Cornerstone of Heineken's Global Strategy
BRAND BUILDING A CORNERSTONE OF HEINEKEN’S GLOBAL STRATEGY 1 GROW 2 CONSUMER- 3 CAPTURE THE 4 LEVERAGE 5 DRIVE 6 EMBED & Heineken® INSPIRED, OPPORTUNITIES THE BENEFITS PERSONAL INTEGRATE BRAND CUSTOMER- IN EMERGING OF HEINEKEN’S LEADERSHIP SUSTAINABILITY ORIENTED, MARKETS GLOBAL SCALE BRAND-LED The
Slide 4: Insight and Segmentation Match Brands to Diverse Consumer Occasions
INSIGHT AND SEGMENTATION MATCH BRANDS TO DIVERSE CONSUMER OCCASIONS Needstates 6. 3. Drinking 7. Cosy 8. Quality 2. Have a 5. Time for a 9. Everyday 4. Daily 1. Come 10. Relaxing Letting Go! with your party Time Quick Drink Small Glass Meal Refreshment Home & with mates at home over Food at Home Rel
Slide 5: Americas Regional Brand Overview
AMERICAS REGIONAL BRAND OVERVIEW A strong line up of local, regional and international brands Mexico USA Brazil Canada Chile Argentina Panama Haiti Bahamas St Lucia Suriname Heineken® Heineken® Heineken® Heineken® Heineken® INTERNATIONAL Strongbow Amstel Light Sol Heineken® Heineken® Amstel Heineken
Slide 6: Agenda
AGENDA HEINEKEN Americas: BRANDS AT THE CORE Winning with Brands Heineken® AND GLOBAL BRANDS DRIVE PREMIUM REGIONAL POWER BRANDS FOR NORTH AMERICA BRAND BUILDING CAPABILITIES 6
Slide 7: Heineken and Global Brands Drive Premium
Heineken AND GLOBAL BRANDS ® DRIVE PREMIUM AS MARKETS DEVELOP, NEW PREMIUM SEGMENTS IPS is EMERGE Craft International Premium VARIETY AND CHOICE BEER CONSUMPTION, IPS IPS Segment IPS DPS DPS DPS is DPS Domestic Premium Segment Mainstream Mainstream Mainstream Mainstream Value + Price Value is the ec
Slide 8: Heineken is at the Forefront of Regional IPS Development
Heineken IS AT THE FOREFRONT ® OF REGIONAL IPS DEVELOPMENT Unique opportunities NORTH AMERICA CENTRAL across the Americas & CARIBBEAN & SOUTH AMERICA in both developed and developing markets CANADA UNITED STATES BRAZIL KEY 0-2% CHILE ARGENTINA HKN ® SOM* 2-5% 5-10% PUERTO >10% RICO MEX *HKN® SOM = H
Slide 9: The USA is an Important Market for the Heineken Brand Globally
THE USA IS AN IMPORTANT MARKET FOR THE Heineken BRAND GLOBALLY ® Improved Heineken® 2009 2012 volume trends over -9% DEPLETIONS 0% DEPLETIONS the past 3 years AK AK WA WA ME MT ND ME MT ND OR MN VT OR NH MN VT ID NH WI MA ID SD NY WI MA MI SD NY WY CT RI MI CT WY RI IA PA NJ PA NE IA NJ NV NV NE OH
Slide 10: A Significant Opportunity for IPS in Brazil
A SIGNIFICANT OPPORTUNITY FOR IPS IN BRAZIL Current low level of segmentation BRAZIL BEER CAGR in Brazil expected to result in rapid BY SEGMENTS development from Domestic Beer Market Volume (kHL) Premium Segment to International 3,047 INTERNATIONAL PREMIUM +76.8% Premium Segment 5,300 DOMESTIC PREMI
Slide 11: Heineken Poised for Growth in Brazil
Heineken POISED ® FOR GROWTH IN BRAZIL Positioning Heineken® BRAZIL PREMIUM Heineken®: IMPROVING brand to stimulate SEGMENT GROWTH BRAND HEALTH INDICATORS and lead IPS growth Market Volume (k HL) (%) DPS IPS Heineken® Share of Premium 44 14.000 12.8% 14,0% 33 19 22 24 25 12.000 11.1% 12,0% Spontaneo
Slide 12: Video: Rock in Rio
VIDEO ROCK IN RIO *HEINEKEN
Slide 13: Leveraging Global Capabilities to Grow Heineken
LEVERAGING GLOBAL CAPABILITIES TO GROW Heineken® HEINEKEN can access CHILE ARGENTINA local system strengths Heineken® SHARE Heineken® SHARE to further accelerate development of the OF TOTAL BEER MARKET OF TOTAL BEER MARKET Heineken® brand in joint Price ventures such as CCU Price Index 8% 150 4,0% P
Slide 14: A Clear Role for Heineken's Other Global Brands in the Americas
A CLEAR ROLE FOR HEINEKEN’S OTHER GLOBAL BRANDS IN THE AMERICAS DESPERADOS SOL STRONGBOW FRENCH WEST INDIES BRAZIL USA Up to 12% share of Transitioning from Re-acquired import market in Martinique, local Sol to the rights from Vermont Guadeloupe and premium Global Hard Cider in 2012 Fren
Slide 15: Proven Capabilities in Global Brand Management
PROVEN CAPABILITIES IN GLOBAL BRAND MANAGEMENT USA STRONGBOW CARIBBEAN DESPERADOS VOLUME GROWTH VOLUME GROWTH (% VS YR AGO) (% VS YR AGO) 94% 97% 881% 857% 83% 688% 658% 584% 56% 417% 440% 37% 321% 28% 28% 16% 111% 8% 15% 33% Feb-13 May-13 Jan-13 Apr-13 2011 2012 Jun-13 Mar-13 Jul-13 Aug-13 2011 201
Slide 16: Agenda
AGENDA HEINEKEN Americas: BRANDS AT THE CORE Winning with Brands Heineken® AND GLOBAL BRANDS DRIVE PREMIUM REGIONAL POWER BRANDS FOR NORTH AMERICA BRAND BUILDING CAPABILITIES 16
Slide 17: Positive Demographic Trends to Underpin Growth in Mexican Beer
POSITIVE DEMOGRAPHIC TRENDS TO UNDERPIN GROWTH IN MEXICAN BEER Rising levels of economic HISPANIC MEXICO-USA TRADE integration between POPULATION GROWTH APPROACHING the USA and Mexico, particularly in border LEADS MULTICULTURAL EU-USA LEVELS regions 80% Ratio of Mexico-US Trade 232 75% vs. EU-USA Tr
Slide 18: Tecate & Dos Equis are Regional Power Brands
TECATE & DOS EQUIS ARE REGIONAL POWER BRANDS Tecate positioned MEXICO USA consistently across the PRICE DIAMOND PRICE DIAMOND US and Mexico; Dos Equis has achieved super premium status in the US PREMIUM PREMIUM ABOVE ABOVE MAINSTREAM MAINSTREAM MAINSTREAM MAINSTREAM BELOW BELOW MAINSTREAM MAINSTREAM
Slide 19: Growth of Dos Equis & Tecate Has Accelerated
GROWTH OF DOS EQUIS & TECATE HAS ACCELERATED DOS EQUIS TECATE VOLUME GROWTH VOLUME GROWTH 3.500 Mexico CAGR (2010-12) 14.000 Mexico CAGR (2010-12) USA Total: 12.2% USA Total: 11.5% 3.000 12.000 2.500 10.000 2.000 8.000 1.500 6.000 Volume (kHL) 1.000 4.000 Volume (kHL) 500 2.000 0 0 19 Source: Canade
Slide 20: Video: Dos Equis
VIDEO DOS EQUIS *HEINEKEN
Slide 21: Deploying Brands with Power and Consistency in Border Cities
DEPLOYING BRANDS WITH POWER AND CONSISTENCY IN BORDER CITIES CRITICAL BORDER CITIES ACCOUNT FOR: Represents critical 17% OF TOTAL US border cities TECATE VOLUME 20% OF TOTAL MEXICAN TECATE VOLUME 21
Slide 22: Agenda
AGENDA HEINEKEN Americas: BRANDS AT THE CORE Winning with Brands Heineken® AND GLOBAL BRANDS DRIVE PREMIUM REGIONAL POWER BRANDS FOR NORTH AMERICA BRAND BUILDING CAPABILITIES 22
Slide 23: Increasing the Rate of Innovation
INCREASING THE RATE OF INNOVATION INNOVATION RATE PROGRESS BY TOP CONTRIBUTORS Innovation Rate 5.0% 4.7% 3.6% 3.3% 2.9% 2.9% 2.5% 2010 2013F 0.9% 0.8% 0.8% 0.3% 0.0% 0.0% 0.0% Mexico Brazil USA Suriname French West Puerto Rico Americas Indies From 1 January 2013, the innovation rate is calculated as
Slide 24: Success of "Beers of Mexico" Innovation in the USA
SUCCESS OF “BEERS OF MEXICO” INNOVATION IN THE USA 2005 2012 2013 2013 24pk 12pk 12pk 24pk club celebration club pack bottles can cooler pack promo pack (with INDIO) 177 VOLUME 154 In KHL 52 58 42 43 30 10 2006 2007 2008 2009 2010 2011 2012 2013F 24
Slide 25: Brazil: Sales and Route-to-Market Excellence
BRAZIL: SALES AND ROUTE-TO-MARKET EXCELLENCE Consistency INFORMATION, RIGHT PEOPLE, and attention TARGETS, CONSTANT RIGHT PLACE, to the basics TRACKING RIGHT THINGS at the core Establish a common language Winning with key Global and of regional around sales KPI’s and Regional Customers is a prio
Slide 26: Brazil Route-to-Market
BRAZIL ROUTE-TO-MARKET KEY ELEMENTS OFF-PREMISE INCREMENTAL ROUTES 1 Identify high priority outlets for beer with low or no CSD coverage 2 Develop new roles with bottlers: Beer-centric reps Beer ambassadors Beer coaches 3 Create KPIs for beer roles which are linked to variable compensation 4 F
Slide 27: Brazil: Excellence in Outlet Execution
BRAZIL: EXCELLENCE IN OUTLET EXECUTION Audit process PRESENCE PRICE PROMOTION PLACEMENT drives Must have SKUs Above, On Par or below Mandatory materials Fridges attainment of recommended price Compliant Non-compliant in-store ‘picture Below On Par Above 53% 5% of success’ 15% 21% 85% 79% 5% 16% 2% 0
Slide 28: Winning Where We Choose to Compete
WINNING WHERE WE CHOOSE TO COMPETE COUNTRY BRAND VOLUME SHARE OF VOLUME SHARE DEVELOPMENT OCT YTD (BPS) VS LY Mexico Total Portfolio Total Beer +20 USA Total Portfolio Total Beer +7 Brazil Heineken® Premium +90 Chile Heineken® Total Beer +20 Argentina Heineken® Total Beer +10 Canada Heineken® Total
Slide 29: Summary
SUMMARY Key Takeaways SUPERIOR BRAND BUILDING A CORNERSTONE OF HEINEKEN’S GLOBAL AND AMERICAS STRATEGY TREND TO PREMIUM CONTINUES IN NORTH AMERICA WITH CONSIDERABLE ROOM TO GROW IN LATIN AMERICA POWER PORTFOLIO SPEARHEADED BY HEINEKEN® COMPLEMENTED BY GLOBAL AND REGIONAL BRANDS IN NORTH AMERIC
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