Heineken launches initiative to boost on-trade by £1bn in three years

Heineken launches initiative to boost on-trade by £1bn in three years

The company has identified six growth drivers – and their worth – that offer licensees solutions to grow cider and beer sales.

“Let’s Get Together” (incremental value £249m) states licensees should create occasions that give people a reason to visit the pub rather than stay at home.

“Maximise The Core” (£225m) states “enhancing kerb appeal” can increase footfall and widen trading hours with items such as free Wi-Fi or food at different times of day communicated via outdoor signs or online advertising.

Maintaining and pouring consistent quality cider and beer would also drive repeat custom.

“Great With Food” (£189m) states licensees should maximise consumer spend by pairing food with their cider and beer – food is present at a third of all drinking occasions, a figure that is growing.

“Live Better” (£174m) focuses on the trend for people trying to lead healthier lifestyles, including the more than one million people who have chosen to abstain from alcohol in the past four years.

Heineken said having a range of no and low-alcohol alternatives or natural and sustainably produced cider and beer meant licensees could “remove the barrier of consumers feeling a trip to the pub is not in line with their lifestyle”.

“My Generation” (£108m) is aimed at 18 to 24-year-old beer and cider drinkers, who have a lot more choice than previous generations.

On-trade visits by this age group per week have fallen 20% in the past decade. Heineken said licensees should have the right balance between well-known brands at reasonable prices and more unique choices, while “speaking the right language in terms of marketing and utilising digital” would also drive footfall.

“We’re Worth It” (£72m) is about encouraging consumers to try a more premium beer or cider.

Heineken said although it was vital to have a mainstream offering – two in five pints of draught beer sold is Foster’s, John Smith’s, Guinness, Carling or Carlsberg – licensees should offer a range of mainstream and premium drinks at the “right price points”.

Outlets should give the best spots in the fridge and on the bar to the more premium options.

Tasting notes for a craft range could also create trade-up opportunities.

Heineken category and trade marketing director Jerry Shedden said: “Months of research have been condensed into an easy to understand category strategy that will grow our customers’ businesses.”


Article credit: Propel info