China Food

Heineken global new CEO debut! He said that Heineken China and China Resources snowflake had been integrated in advance


Compared with some of its peers, Heineken, the world’s second largest brewer, is not so optimistic about the situation in the second half of the year. But at least the Chinese market can give the beer giant a bit of confidence.


According to Heineken’s 2020 interim report released yesterday, net income (before special items and amortization) in the first half of the year was 9.243 billion euros, with organic growth down 16.4%. In terms of sales, the total sales of beer decreased by 11.5% in the first half of the year, while sales of Heineken brand decreased by 2.5%.



Following the results, Dolf van den brink (previously president of van Heineken Asia Pacific), who took over as CEO of Heineken in June, attended an analyst meeting for the first time and revealed that the merger changes had resulted in a decrease in net income of EUR 55 million. Among them, the acquisition of namys ó w brewery in Poland partially offset the decline caused by divestiture of China business.


In addition, he also talked about the achievements of cooperation with China Resources beer and the preliminary planning after taking office. Now, let’s have a look.


Dolf van den brink, Heineken CEO


Double digit growth


According to van den brink, the anti epidemic measures adopted by markets in many countries have impacted Heineken’s revenue in the first half of the year. “April was the weakest month. Although the subsequent recovery was slow, most markets are still improving week by week. “


He also said that although the market performance was strong in June, it was not clear whether this trend would continue into the next few months due to the impact of re stocking by consumers in some markets after the blockade measures.



Snack generation noticed that Heineken brand, which is growing against the trend in some markets, has been praised for many times.


Van den brink says Heineken’s market share is stable or growing in 80% of the company’s key markets. Among them, the brand has achieved double-digit growth in 14 markets such as China, Brazil and the United Kingdom.


“As for the Chinese market, we have successfully opened the cooperation with China Resources beer. They consolidated ahead of time and accelerated the development of the brand, achieving double-digit growth every quarter. ” Van den brink said.


He later said: “from the platform cooperation with China Resources beer, the Chinese market has shown great prospects.”


How about the “marriage” between the two beer giants? Yesterday, snack reps hoped to seek comments from the two companies on the latest integration of Heineken and China Resources. A number of former Heineken employees in China said they had left their jobs, while China Resources only said, “please pay attention to our half year performance release for Heineken.”


Xiaoshidai once introduced that at the annual performance meeting in 2019, Hou Xiaohai, CEO of China Resources beer, revealed that the company had completed the integration of Heineken related businesses by the end of December last year.


“2020 is the first year of development of China Resources beer after taking over Heineken, and the first battle should be well fought.” Hou Xiaohai said at that time that Heineken’s work this year will focus on three major aspects: new products, vigorously developing high-quality distributors to promote the development of Heineken international brand and snowflake China’s high-end brand, and actively building the operation ability of the organization team for high-end beer.


A series of plans are being implemented. According to the runpi research report released by Everbright Securities in July, China Resources launched a new light Omni channel product “Xili star silver” at the end of April after joining hands with Heineken. In June, it also launched “Sol” products, which mainly focus on night performances and high-end catering.


According to the above research report, channel research shows that with the help of China Resources’s own strong channel resources, the promotion of Heineken Star Bank is good. In addition, sol products are being steadily promoted.


Experience of taking office

The snack generation noticed that van den brink, who was in charge of Heineken for a short time, also shared his preliminary plan for the first time after taking office.

Van den brink said he spoke to many stakeholders both inside and outside the company after taking office and found that everyone agreed on the need to continue to consolidate Heineken’s key strengths and to diversify its global business by covering many high growth markets.


He said that Heineken’s product portfolio led by the Heineken brand, the business model close to and highly adapted to the local market, and the dedicated and talented employees are all advantages of Heineken.

However, Heineken also needs to improve.


“Heineken, for example, is reaping returns from the brand and consumer investment it made a few years or even decades ago. In order to ensure long-term growth excellence, we need to focus on consumers and customers, to develop and create new brands and new propositions, and to target unmet consumer needs. ” He said.


Van den brink goes on to say that Heineken can operate faster and more quickly and use its best practice experience more quickly in a unique corporate culture. In addition, Heineken “can and must” strengthen the concept of cost.


“Looking to the future, as the market recovers, we will use these unique strengths to seize opportunities, meet challenges and write our next growth chapter.” Van den brink said.


Dolf van den brink, Heineken CEO


Back in the second half of this year, Heineken, which has withdrawn its 2020 guidelines, did not give any new performance expectations this time, and said in its financial report that although most of the markets have gradually recovered since April, the market situation remains volatile and uncertain.


Looking ahead to the second half of the year, Heineken expects that the product and channel mix will have an adverse impact, especially in Europe, as the ready to drink channel in the market continues to suffer more than the non ready to drink channel. Therefore, Heineken expects that the input cost per 100 liter product will increase significantly compared with last year.


In response, Heineken said it had taken mitigation measures and would further strengthen its focus on costs. While reducing unnecessary expenses, Heineken will still provide adequate support to the brand and market access.

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