Heineken Financial Analysis

5557 Words23 Pages
Heineken (AMS: HEIA) UNDERVALUED Company outlook With a tradition in brewery of almost 150 years, Heineken International is currently one of the biggest companies in the beer market around the world. Having its main headquarters in Amsterdam, it is now the beer market leader in Europe in terms of sales, volume and profitability. It occupies the third position globally and the second place in the ranking of the best sold beer brands in the United States (globally, it is in top 10). The company is part of the alcoholic drinks sector, which is included in the non-cyclical consumer goods market. The main activity of the company is brewery, but at the moment it is also the largest cider producer. This and the fact that continues to focus on its premium brand Heineken insure an important competitive advantage. As the main beer producer in Europe, its portfolio consists of more than 200 brands of both beer and cider (low alcohol beverage made form apples, tastes more like sparkling wine), among which the most important ones are Amstel, Birra Moretti, Cruzcampo, Foster's, Kingfisher, Paulaner, Gosser or Newcastle Brown Ale. They are successful in maintaining their market position by owning a complex mixture of wholly-owned companies, license agreements, affiliates, strategic partnerships and alliances. Due to both their acquisitions and joint ventures in India, Africa, Asia and Latin America Heineken has a strong platform for future growth from emerging beer markets. Heineken controls 43% of the Mexico beer market and 10% of the Brazil’s beer market (fourth largest consumer worldwide). Structure and key figures Usually, although beer consumption tends to decline during crisis periods, the pace of decline is not very accelerated in its case. In fact, during the latest financial crisis, Heineken recorded increases in sales during

More about Heineken Financial Analysis

Open Document