Heineken to up marketing spend to capitalise on ‘premium product’ growth
Beer brewer Heineken is to increase its marketing spend following a successful quarter that saw volume in its eponymous beer brand grow double digits in Western Europe.
The Dutch company said it expects a slight increase in its marketing and sales spend as a percentage of revenue in 2014 – last year it supplied 12.6 per cent to its marketing efforts.
Overall, beer volumes across the group increased 3.1 per cent during the first half, driven by growth in Africa Middle East, the Americas and Western Europe,
Volume for the brewers premium brand Heineken was up 6.6 per cent reflecting strong performance following the World Cup and favourable weather conditions.
Brand equity for Heineken also continued to benefit following the successful 'Open your World' and 'Cities of the World' campaign series.
Heineken's other brands, Desperados, Affligem and Sol, all grew in the double digits in the first half of the year, as the brewer placed a broader focus on extending its premium brand portfolio.
Jean-François van Boxmeer, chairman of the executive board and CEO, commented: "With revenue and profit growth in nearly all regions, this is a very good first half performance. This progress is the result of a continued disciplined strategic focus with sustained investment in our brands and strengthened commercial execution.
“We are confident that our strong brand portfolio, geographic breadth and focus on cost control will result in healthy top and bottom line growth in 2014 and beyond."
Revenue in Western Europe increased to €3.65bn year-on-year compared to €3.6bn in 2013. Operating profit in the region rose to €371m from €363m.
Late last year Heineken announced that it would build on its support for tequila flavoured premium lager Desperados with a £6 marketing campaign.