INSIDE HQ

Beer and cider is local.

We have a global brand, but we survive and thrive

treated very well because we seek to treat people with respect.” There’s the ‘brewing for a better future’ programme that goes to 2020 with very ambitious environment targets. “Our CEO passionately believes in continuously improving our environmental footprint,” explains Orlowski, “so it’s key we are a good citizen no matter where we go because our brand is the name of our company and it’s present everywhere. In Manchester, we’ve probably got some of the most efficient water use for a brewery anywhere in the world.”

IN MODERATION

In terms of the responsibility agenda, Heineken has sought to be in the vanguard. “We were first to put unit information on branded glassware in the on-trade and among the first to adopt unit labelling some time ago,” says Orlowski. “We are trialling schooner glasses, which are glasses of two thirds of a pint, to offer a moderating alternative.”

As for enjoyment, Orlowski leaves it to Freddy Heineken, who did much to globalise the brand with his mantra: “I don’t sell beer, I sell a feeling.” Orlowski says this idea of the experience is what Heineken has brought to the S&N brands. “It was a business with a proud history going back to 1749,” he says, “but perhaps the consumer-led element probably wasn’t at the heart of it.” For those now working at Heineken, there is a lot of job satisfaction reflected in satisfaction survey scores of almost 100 per cent where advocacy and pride is concerned, says Orlowski.

He says that idea translates into areas of improvement, including efficiency, which has also come from know-how in the global Heineken operation. “We have very clear ways of operating and ways of

on our local brands and local relationships with local customers

measurement that are global; whether it’s the brewery in Vietnam or in Tadcaster,” he states. But Orlowski insists that although expertise has been imported, Heineken relies primarily on local people. “Beer and cider is local,” he says. “We have a global brand, but we survive and thrive on our local brands and local relationships with local customers.” Heineken is very careful to nurture talent, says Orlowski. “There’s a hell of a lot of very capable people here and we’ve exported many of them back to the Heineken international business in positions all around the world,” says Orlowski. “They can then come back here and become even better contributors and that’s how Heineken works. It’s an international business where there’s a lot of cross-flow of people and cross-fertilisation of knowledge.”

CREATING INNOVATION

When it comes to innovation, Heineken puts great effort into understanding consumer behaviour. “Being close to customers is very much part of our ethos,” says Orlowski. “You have to understand consumers, you have to fulfil their needs and deliver something new, interesting and exciting.” Heineken is launching Foster’s Radler, a beer cut with natural

lemon juice, with a two per cent alcohol level to be a moderation alternative. “It’s not just a brand that is trying to steal share from another brand, it will bring new consumers,” asserts Orlowski. Cider brands Bulmers and Strongbow are receiving constant upgrades, in the form of fruit-flavoured editions. This is set to mirror a wider programme of training for vendors to improve the drinking experience, and big sponsorship deals around football, rugby, the Olympics and even James Bond films.

It is part of a constant attempt to match changing market conditions in which mixed social occasions are increasingly the most likely point of consumption. This augurs well for cider, but Orlowski is also positive about the future of beer, which has seen a downward trajectory for 30 years. “Sometime sooner or later it will turn around because it has got a lot going for it. It’s natural, made of water, barley and hops. As an industry, we’ve got to tell that story much better,” says Orlowski, who expresses a fondness for numerous beverages, all from the Heineken stable. Heineken’s future may also be shaped by the regulatory landscape in which excise on beer has risen around 50 per cent in the last five years. Tied to this issue is the ongoing debate around alcohol consumption in the UK – which Orlowski says Heineken addressed when it withdrew high-strength ciders in 2010. However, one thing is certain: Heineken remains firmly committed to the UK. In 2012, Heineken was recognised with a UK Trade & Investment Netherlands Investment Award, for its acquisition of the Royal Bank of Scotland pub portfolio. “It was a good decision to invest in the UK,” concludes Orlowski. “That certainly has not changed.” n

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