Heineken Nv · EURONEXT:HEIA
Heineken Nv — Heineken Financial Markets Conference 2013, Mexico City
27 slides from Heineken Nv's conference presentation, Dec 5, 2013
Slide 1: Investing in Brands for Growth
HEINEKEN FINANCIAL MARKETS CONFERENCE 2013 MEXICO CITY Investing in Brands for Growth LEANDRO BERRONE VP Marketing, Cuauhtémoc Moctezuma Mexico City | December 5-6, 2013 | Heineken NV
Slide 2: Agenda
AGENDA Investing CONSUMER / BEER SEGMENTATION in Brands for Growth BUILDING A WINNING PORTFOLIO MARKETING STRATEGY 2
Slide 3: A New Mexican Consumer Is Emerging
A NEW MEXICAN CONSUMER IS EMERGING CULTURAL SHIFT Historical sacrifices; More optimistic outlook; self-centered mindset open to new experiences SOCIOECONOMIC RISE Low income; Improving economy; high poverty emerging middle class CONSUMPTION BEHAVIOR Varied & Functional sophisticated consumption need
Slide 4: Changing Consumer Preferences for Beer
CHANGING CONSUMER PREFERENCES FOR BEER Light is the LIGHT & DARK BEER PREMIUM SHOWING fastest growing INCREASING SHARE EXCITING PROMISE segment; LIGHT 10% Premium 21% 25% demonstrating DARK 15% strong growth PREMIUM 4% 5% 8% 18% 18% REGULAR 75% 61% 57% MAINSTREAM 96% 95% 92% 2007 2012 2016F 2007 201
Slide 5: Agenda
AGENDA Investing CONSUMER / BEER SEGMENTATION in Brands for Growth BUILDING A WINNING PORTFOLIO MARKETING STRATEGY 5
Slide 6: Strong Brand Portfolio
STRONG BRAND PORTFOLIO TECATE IS THE LEADING LIGHT BRAND IN THE CM BRAND MEXICAN MARKET PREFERENCE* 44% INDIO GAINING SHARE IN THE DARK SEGMENT AND WINNING IN THE DIGITAL COMMUNITY SOL IS ONE OF HEINEKEN’S GLOBAL BRAND PRIORITIES AND A LEADING LAGER IN MEXICO DOS EQUIS STRENGTHENING THE LAGE
Slide 7: Tecate: The Leading National Light Brand
TECATE: THE LEADING NATIONAL LIGHT BRAND Exploit leadership FASTEST GROWING +16% 16 MHL Tecate in a growing SEGMENT CAGR ‘07-’13F segment LIGHT SEGMENT 12 MHL LEADERSHIP +80% 2010 2011 2012 2013F Light segment share UPSCALING FRANCHISE THROUGH INNOVATION 7 Source: Canadean
Slide 8: Opportunity to Exploit Further Light Segment Growth
OPPORTUNITY TO EXPLOIT FURTHER LIGHT SEGMENT GROWTH Strengthening of CONSOLIDATING +43% Tecate franchise LEADERSHIP Volume share in PCC to drive continued core markets ~100L brand growth IN NORTHERN MARKETS Mature Light Market GROWING PENETRATION Undeveloped Non-core markets Light Market IN NON-
Slide 9: Commercials
COMMERCIALS TECATE HEINEKEN
Slide 10: Indio: Winning in the Dark Segment
INDIO: WINNING IN THE DARK SEGMENT SUCCESSFULLY BONDING Gaining share WITH YOUNG TARGET 30% “Brand that in the growing dark segment CONSUMERS shares my interests” Source: OnEquity 3Q ‘13 ENGAGING CONSUMER EXPERIENCES Vive Latino: 3 days with Most important music festival in Mexico +200k Attend
Slide 11: Commercial
COMMERCIAL INDIO HEINEKEN
Slide 12: Sol: Heineken's New Global Brand
SOL: HEINEKEN’S NEW GLOBAL BRAND Investments in NEW “CREDENTIALS” revitalizing brand CAMPAIGN TO INCREASE credentials showing positive early signs IMAGERY ATTRIBUTES COMPLEMENTING LAGER Northern markets BEER OFFERING IN +8% YTD volume NORTHERN MARKETS growth SOL CLAMATO WITH Sol Clamato SUCCES
Slide 13: Commercial
COMMERCIAL SOL HEINEKEN
Slide 14: Dos Equis: Strong Growth Momentum
DOS EQUIS: STRONG GROWTH MOMENTUM Huge growth STRENGTHENING SCALE potential as THROUGH NATIONAL FOOTPRINT above mainstream COMPLEMENTING SKU LINE-UP TO BROADEN REACH CROSS-BORDER CAPABILITIES TO ENHANCE EQUITY & POSITIONING VOLUME CAGR: +16% GROWTH 2010 2011 2012 2013F 14
Slide 15: Heineken
Heineken® The leading CONSISTENT GROWTH CM Brand Portfolio international SINCE LAUNCH 2ND FAVORITE premium beer brand in Mexico WINNING IN TOP CITIES BRAND in Mexico City STRONG ACVITATION OF UEFA CHAMPIONS LEAGUE SPONSORSHIP PLATFORM MUSIC AS KEY ASSET Sponsoring TO CONNECT WITH TOP5 CONCER
Slide 16: Agenda
AGENDA Investing CONSUMER / BEER SEGMENTATION in Brands for Growth BUILDING A WINNING PORTFOLIO MARKETING STRATEGY 16
Slide 17: Key Marketing Strategic Pillars
KEY MARKETING STRATEGIC PILLARS 2 LEAD 4 MEDIA & PREMIUM SPONSORSHIP AGENDA EXCELLENCE 4 3 INNOVATION: 1 CONSOLIDATE EQUITY & MAINSTREAM REVENUE 5 CATEGORY OFFERING DRIVER DEVELOPMENT 17
Slide 18: Consolidate Position in Mainstream
1 CONSOLIDATE POSITION IN MAINSTREAM Insightful and MAXIMIZING ARCHETYPES complementary AND FLAVOR PROFILE REACH brand positioning BROADENING PRICE POINT COVERAGE FOCUSING ON RETURNABLE PACKAGES TO ENHANCE AFFORDABILITY EVOLVING FROM LOCAL TO NATIONAL PORTFOLIO 18
Slide 19: Lead Premium Agenda
2 LEAD PREMIUM AGENDA Developing the PREMIUMIZATION EXPECTED CM PORTFOLIO premium segment TO UNDERPIN FUTURE GROWTH for the long-term OF MEXICAN BEER PROFIT POOL +3x +44% CAGR 2010-13F LEVERAGE ON GROWING MEXICAN MIDDLE CLASS BENEFIT FROM GROWING DISPOSABLE INCOME CREATE A STRUCTURED 2010 20
Slide 20: Innovation
3 INNOVATION Key driver INNOVATION1 Minimum of revenue IS ENHANCING +110 and profit enhancement REVENUE PER HL Price Index Sol Clamato Strongbow Gold 3.6% 4.5x Tecate Titanium Dos Equis 7diez Heineken® 8oz INNOVATION 1.9% RATE 0.8% 2011 2012 2013F 1 From 1 January 2013, the innovation ra
Slide 21: Innovation
3 INNOVATION Improving INCREASE EXPAND DEVELOP brand equity of EQUITY PREMIUM NEW CATEGORY mainstream Sol Clamato & Tecate Titanium Dos Equis 7diez & Heineken® 8oz Strongbow Gold franchises 21
Slide 22: Media & Sponsorship Excellence
4 MEDIA & SPONSORSHIP EXCELLENCE Balanced marketing TV DIGITAL SPONSORSHIP mix to optimize High quality campaigns Increasing digital presence Driving brand awareness national portfolio approach 22
Slide 23: Promoting a 'Positive Story for Beer'
5 PROMOTING A ‘POSITIVE STORY FOR BEER’ Unlocking Accessible “Not all beers have a bitter flavor, Leverage the main the full taste there are non-bitter options for me” growth drivers to ignite potential of the beer category the beer category Better than “Now I know that the beer in Mexico You Think
Slide 24: Expanding in National Accounts
5 EXPANDING IN NATIONAL ACCOUNTS Our Category Development CM VOLUME IN CM IS CATEGORY CAPTAIN capabilities translate SUPERMARKETS CHANNEL IN 5 OF THE TOP 6 into strategic partners NATIONAL RETAILERS +10% +22% 2011 2012 2013 F 24
Slide 25: Summary
SUMMARY Key Takeaways A STRONG AND WELL BALANCED PRODUCT PORTFOLIO COMPETING ACROSS ALL MARKET SEGMENTS LEVERAGING STRENGTH OF TECATE TO GROW FURTHER IN ATTRACTIVE LIGHT SEGMENT Heineken® TO BENEFIT FROM VALUE AND VOLUME OPPORTUNITY IN THE FAST GROWTH PREMIUM SEGMENT IGNITING ADDITIONAL SOUR
Slide 26: Off-Trade Market Visit
OFF-TRADE MARKET VISIT POLANCO AREA TEAM A CONDESA AREA TEAM B 7-ELEVEN MEDIUM SIZED STORES (AROUND 50M2) SMALL PROXIMITY STORE WITH FEW CATEGORIES Peak business hours 11am-1pm| 4-10pm & weekends MOM & POP AND MANAGED BY FAMILIES 30 M2 Peak business hours 11am-1pm | 4-8pm Relevant categories Beer, s
Slide 27: On-Trade Market Visit (Evening)
ON-TRADE MARKET VISIT (EVENING) ALL POLANCO AREA DINNER AT NO 20 TEAM A+B TEAM C+D ROMA AREA CONDESA AREA CERVECERÍA CELTICS DE BARRIO PATA NEGRA CHUCHITO MALA FAMA PÉREZ ASERRÍN ALL POLANCO NEIGHBORHOOD GRAVITY 27
Heineken — Heineken Financial Markets Conference 2013, Mexico City on 6ix