Heineken strengthens production to expand cheaper brands

Sao Paulo six years ago in Brazil, Heineken has among his ambitions stop being so dependent on a single brand. In order to expand its portfolio and develop alternative labels, and cheaper, as Sun and Amstel, which today have limited distribution, the Dutch giant is investing heavily on flexibility and expansion of its production.
One of the steps in that direction was the reopening of the factory in Ponta Grossa (PR), this week, at the cost of 400,000,000 R$. In an interview to the State, the President of Brazil, Didier Debrosse, Heineken said that the investment will allow the company produces 40 different products in the new row. With this flexibility, you can not only meet the need to expand the offer to Heineken, but also strengthening the multibrand strategy.
In addition to the reformulation of the Ponta Grossa, Heineken is also building a new unit in Goiás, which will consume 650,000,000 R$, and have spent R$ 150,000,000 to enlarge the operation in Jacareí (SP). The new capabilities will also compensate for the decision to shut down older units such as Manaus (AM), Cuiabá (MT) and Feira de Santana (BA).
With 9.4 percent, Heineken is now the third largest brewery in the Brazilian market, behind Volkswagen and Petropolis, according to Nielsen. Even with the fall of 2.2% in the production of beer between January and June, according to the CervBrasil, an organization that brings together the manufacturers, Heineken''s revenue rose more than 10 percent in the country in the same period, according to global balance sheet released last Monday.
Changes. According to Debrosse, gymnastics to transform the industrial park reflects the transformation that the Brazilian beer market has suffered since Heineken arrived here, with the acquisition of Femsa, inheriting the Kaiser brand in the process.
For the Executive, consumers are more demanding. For decades, as regards packaging, the offer was restricted, with emphasis on cans, 600 ml bottles and long necks. Now, the game is changing. Among the products that Heineken is placing on the market is a compact 5 liter bucket, which the company sees as ideal for weekend barbecues.
"When producing (new packaging), improve the consumer experience with our product, which will be cooler on the shelf," said Debrosse. In the case of the 5 liter bucket, which is valid for a period of six months, the importation would invalidate the release, because of all the steps involved in customs clearance.
With Heineken positioned with 15% price above the market leaders, the company now plans to speed up the expansion of the Sun and the Amstel, which have most popular positioning and can fight by consumer preference with less money to spend.
The Amstel is a bid to balance the portfolio of the brand in São Paulo and Rio de Janeiro, where the label Kaiser is not well accepted. "The market is right. We can''t sell Kaiser in Florianópolis, but sell well in Blumenau, "he explains.
For Debrosse, even the most popular brands of Heineken will fight not only on the basis of the price-even those labels need to have certain "charm" to the consumer. "We have an aggressive positioning, but without working in an exaggerated manner prices."
This careful in creating brand and offer a differentiated product was fundamental to the Heineken conquer space soon in Brazil, says Debrosse. He said that the group came to cogitate change formula of Heineken to reach the Country, but gave up the idea. "It was the right decision. This allowed us to be different from others. " The information is from the newspaper O Estado de s. Paulo.