Despite regulation limiting how alcohol companies can use social media, Heineken is betting on influencers to reach new audiences for brands like Desperados.
Heineken indicated its negotiations with European retailers have been “tougher than usual”, as it looks to remain firm on its pricing strategy.
Heineken “significantly” increased its marketing spend across all regions last year, now accounting for 9.8% of revenue.
Heineken is aiming to generate growth “balanced” between volume increases and pricing going forward, and is “significantly and materially” increasing its marketing spend to do so.
Heineken believes Spanish beer brand Cruzcampo will bring incremental growth to its portfolio and stand out in a crowded Mediterranean beer market.
Rajeev Sathyesh takes over as Heineken’s UK marketing director as Michael Gillane moves to Europe to become director of commercial development role.
While pledging to be ‘competitive’ and agile in its pricing, Heineken CFO Harold van den Broek said the company would not be stepping up its promotional activity.
Heineken saw profits plummet in the first half of the year as it suffered from price-driven volume decreases. But its CEO has defended the tactic, insisting any volume decrease will be temporary thanks to the “power” of its brands.
The brewer is now measuring its ability as a brand to help consumers have a good time to its suite of brand performance metrics.
Last year also saw Heineken boost its marketing spend above pre-pandemic levels, with the brewer claiming to get more out of this investment than ever before.
Heineken launched hard seltzer Pure Piraña in Europe last year. However, a lack of familiarity among UK consumers is holding the category back, the firm’s UK marketing director says.
The brand aims to engage consumers with a “meaningful” message and build its share of the premium beer market, says global marketing director Marcelo Amstalden Möller.
A combination of complex consumers, zero-based budgeting and stretched teams is making the role of consumer and marketing insights more challenging, says Reckitt’s George Papadopoulos.
Far from being content to play second fiddle to the established players, no and low alcohol brands and plant-based products are focusing on their visual identity as a means to capture market share.
Analysts argue brands will have to be careful about where they place their products, as governing bodies and tournament holders may have to “bow down” to influential athletes who want to set a good example to the future generation.