heineken financial markets conference 2013 mexico city

HEINEKEN FINANCIAL
MARKETS CONFERENCE 2013
MEXICO CITY
Investing in Brands for Growth
LEANDRO BERRONE
VP Marketing, Cuauhtémoc Moctezuma
Mexico City | December 5-6, 2013 | Heineken NV
AGENDA
Investing
in Brands for
Growth
2

CONSUMER / BEER SEGMENTATION

BUILDING A WINNING PORTFOLIO

MARKETING STRATEGY
A NEW MEXICAN CONSUMER IS
EMERGING
CULTURAL
SHIFT
Historical sacrifices;
self-centered mindset
More optimistic outlook;
open to new experiences
SOCIOECONOMIC
RISE
Low income;
high poverty
CONSUMPTION
BEHAVIOR
Functional
consumption needs
3
Improving economy;
emerging middle class
Varied &
sophisticated
purchasing
CHANGING CONSUMER PREFERENCES
FOR BEER
LIGHT & DARK BEER
INCREASING SHARE
Light is the
fastest growing
segment;
Premium
demonstrating
strong growth
LIGHT
DARK
10%
15%
21%
18%
REGULAR
75%
2007
4
Source: Canadean
61%
2012
PREMIUM SHOWING
EXCITING PROMISE
25%
PREMIUM
4%
MAINSTREAM
96%
5%
8%
18%
57%
2016F
2007
95%
2012
92%
2016F
AGENDA
Investing
in Brands for
Growth
5

CONSUMER / BEER SEGMENTATION

BUILDING A WINNING PORTFOLIO

MARKETING STRATEGY
STRONG BRAND PORTFOLIO
6

TECATE IS THE LEADING LIGHT BRAND IN THE
MEXICAN MARKET

INDIO GAINING SHARE IN THE DARK SEGMENT
AND WINNING IN THE DIGITAL COMMUNITY

SOL IS ONE OF HEINEKEN’S GLOBAL BRAND
PRIORITIES AND A LEADING LAGER IN MEXICO

DOS EQUIS STRENGTHENING THE LAGER
SEGMENT WITH CONSISTENT STRONG GROWTH

Heineken® IS LEADING THE DEVELOPMENT
OF THE SUPER PREMIUM SEGMENT
Source: OnEquity 3Q ’13, * Percentage surveyed who said that one of the CM brands was their favourite
CM BRAND
PREFERENCE*
44%
TECATE: THE LEADING NATIONAL
LIGHT BRAND
Exploit leadership
in a growing
segment



7
Source: Canadean
FASTEST GROWING
SEGMENT
LIGHT SEGMENT
LEADERSHIP
UPSCALING FRANCHISE
THROUGH INNOVATION
+16%
16 MHL
+80%
12 MHL
Tecate
CAGR ‘07-’13F
Light segment share
2010
2011
2012
2013F
OPPORTUNITY TO EXPLOIT FURTHER
LIGHT SEGMENT GROWTH
Strengthening of 
Tecate franchise
to drive continued
brand growth

CONSOLIDATING
LEADERSHIP
IN NORTHERN MARKETS
GROWING PENETRATION
IN NON-CORE MARKETS
+43%
Volume share in
core markets
PCC
~100L
Mature Light
Market
Undeveloped
Light Market
Non-core markets
+27%
YTD growth vs. LY

8
OPPORTUNITY TO DRIVE
GROWTH OUTSIDE
NORTHERN REGION
Potential
for per Capita
Consumption
growth
PCC
~50L
COMMERCIALS
TECATE
9
INDIO: WINNING IN THE DARK SEGMENT

Gaining share
in the growing
dark segment




10
Source: Promoters
SUCCESSFULLY BONDING
WITH YOUNG TARGET
CONSUMERS
ENGAGING CONSUMER
EXPERIENCES
30%
“Brand that
shares my
interests”
Source: OnEquity 3Q ‘13
Vive Latino:
Most important
music festival in Mexico
3 days with
120 year anniversary:
Labels design contest
to celebrate diversity
+5,000
WINNING IN
DIGITAL COMMUNITY
+8 Million +1 Million
+200k
Attendees
Designs
Received
Page Views
Facebook Fans
COMMERCIAL
INDIO
11
SOL: HEINEKEN’S NEW
GLOBAL BRAND
Investments in
revitalizing brand
credentials showing
positive early signs

NEW “CREDENTIALS”
CAMPAIGN TO INCREASE
IMAGERY ATTRIBUTES

COMPLEMENTING LAGER
BEER OFFERING IN
NORTHERN MARKETS
Northern markets
SOL CLAMATO WITH
SUCCESSFUL
PERFORMANCE
NATIONWIDE
Sol Clamato

12

ALIGNMENT WITH GLOBAL
POSITIONING IN PROGRESS

NEW RETURNABLE
PACKAGING
+8%
YTD volume
growth
+45%
YTD Volume
Growth
COMMERCIAL
SOL
13
DOS EQUIS: STRONG GROWTH
MOMENTUM

Huge growth
potential as
above mainstream


STRENGTHENING SCALE
THROUGH NATIONAL FOOTPRINT
COMPLEMENTING SKU
LINE-UP TO BROADEN REACH
CROSS-BORDER CAPABILITIES
TO ENHANCE EQUITY
& POSITIONING
VOLUME
GROWTH
CAGR: +16%
2010
14
2011
2012
2013F
®
Heineken

The leading
international
premium beer brand
in Mexico

CONSISTENT GROWTH
SINCE LAUNCH
WINNING IN TOP CITIES

STRONG ACVITATION OF
UEFA CHAMPIONS LEAGUE
SPONSORSHIP PLATFORM

MUSIC AS KEY ASSET
TO CONNECT WITH
TARGET CONSUMERS

DIGITAL AGGRESSIVE
AMPLIFICATION
CM Brand Portfolio
2ND FAVORITE
BRAND
in Mexico City
Sponsoring
TOP5 CONCERTS
Mexico City
“The Decision”
+3 Million
YouTube Views
15
AGENDA
Investing
in Brands for
Growth
16

CONSUMER / BEER SEGMENTATION

BUILDING A WINNING PORTFOLIO

MARKETING STRATEGY
KEY MARKETING STRATEGIC
PILLARS
2 LEAD
4 MEDIA &
SPONSORSHIP
EXCELLENCE
PREMIUM
AGENDA
4
1 CONSOLIDATE
MAINSTREAM
OFFERING
17
3 INNOVATION:
EQUITY &
REVENUE
DRIVER
5 CATEGORY
DEVELOPMENT
1 CONSOLIDATE POSITION
IN MAINSTREAM
Insightful and
complementary
brand positioning
18

MAXIMIZING ARCHETYPES
AND FLAVOR PROFILE REACH

BROADENING PRICE POINT
COVERAGE

FOCUSING ON RETURNABLE
PACKAGES TO ENHANCE
AFFORDABILITY

EVOLVING FROM LOCAL
TO NATIONAL PORTFOLIO
2 LEAD PREMIUM
AGENDA
Developing the
premium segment
for the long-term
19

PREMIUMIZATION EXPECTED
TO UNDERPIN FUTURE GROWTH
OF MEXICAN BEER PROFIT POOL

LEVERAGE ON GROWING
MEXICAN MIDDLE CLASS

BENEFIT FROM GROWING
DISPOSABLE INCOME

CREATE A STRUCTURED
BRAND UPSCALE LADDERING
CM PORTFOLIO
+3x
+44%
CAGR 2010-13F
2010
2013F
Premium & Upper
Mainstream
3 INNOVATION
Key driver
of revenue
and profit
enhancement

INNOVATION1
IS ENHANCING
REVENUE PER HL

Sol Clamato

Strongbow Gold

Tecate Titanium

Dos Equis 7diez

Heineken® 8oz
Minimum
+110
Price Index
3.6%
4.5x
INNOVATION
RATE
1.9%
0.8%
2011
20
2012
2013F
1 From 1 January 2013, the innovation rate is calculated as revenues generated from innovations (introduced in the past 40 quarters for a new category, 20 quarters for a new
brand and 12 quarters for all other innovation) divided by total revenue (exclusive of APB markets)
3 INNOVATION
Improving
brand equity of
mainstream
franchises
21
INCREASE
EQUITY
EXPAND
PREMIUM
DEVELOP
NEW CATEGORY
Sol Clamato & Tecate Titanium
Dos Equis 7diez & Heineken® 8oz
Strongbow Gold
4 MEDIA & SPONSORSHIP
EXCELLENCE
Balanced marketing
mix to optimize
national portfolio
approach
22
TV
High quality campaigns
DIGITAL
Increasing digital presence
SPONSORSHIP
Driving brand awareness
5 PROMOTING A ‘POSITIVE STORY FOR
BEER’
Unlocking
the full
potential of the
beer category
23
Accessible
taste
“Not all beers have a bitter flavor,
there are non-bitter options for me”
Better than
You Think
“Now I know that the beer
is a very good option for me”
Beer with
Meals
“I like to enjoy my meals with beer”
Beer is
Refreshing
“I choose beer over others drinks
to refresh and/or quench my thirst ”
Cool &
Elegant
“It’s important to me that the beer
that I drink makes me project
my good taste so I feel cool and elegant”
Leverage the main
growth drivers to ignite
the beer category
in Mexico
Driving sustainable
growth for CM and
our customers
5 EXPANDING IN
NATIONAL ACCOUNTS
Our Category Development
capabilities translate
into strategic partners
CM VOLUME IN
SUPERMARKETS CHANNEL
+22%
2011
24
+10%
2012
2013 F
CM IS CATEGORY CAPTAIN
IN 5 OF THE TOP 6
NATIONAL RETAILERS
SUMMARY
Key Takeaways
25

A STRONG AND WELL BALANCED PRODUCT PORTFOLIO COMPETING ACROSS ALL
MARKET SEGMENTS

LEVERAGING STRENGTH OF TECATE TO GROW FURTHER IN ATTRACTIVE LIGHT
SEGMENT

Heineken® TO BENEFIT FROM VALUE AND VOLUME OPPORTUNITY IN THE FAST
GROWTH PREMIUM SEGMENT

IGNITING ADDITIONAL SOURCES OF GROWTH IN LAGER AND DARK SEGMENTS
WITH DOS EQUIS AND INDIO

INNOVATION REINVIGORATING BRANDS AND ENHANCING REVENUE

DRIVE NATIONAL PORTFOLIO THROUGH TARGETED MEDIA & SPONSORSHIP
PLATFORMS
OFF-TRADE MARKET VISIT
POLANCO AREA TEAM A
CONDESA AREA TEAM B
7-ELEVEN MEDIUM SIZED STORES (AROUND 50M2)
OXXO
Peak business hours
11am-1pm| 4-10pm & weekends
Relevant categories
Beer, soft drinks, cigarettes,
fast food and snacks
Exhibition points
Cold room, cooler and weekender
Communication points
Mini banners, stickers, poster in
weekenders and coolers
BIG STORE THAT OFFERS ALL TYPE OF FOOD
CHEDRAUI AND GROCERIES 5,000-10,000M2
SIX STORES
Peak business hours
11am-1pm | 4-8pm
Relevant categories
Beer, soft drinks, snacks and
groceries
Exhibition points
Fridges and coolers
Communication points
Pricing strips, posters, stickers, beer
pendants, fridge crests
SMALL PROXIMITY SPECIALIZED
IN BEER SALES 50-80M2
Peak business hours
11am-1pm | 4-10pm & weekends
Peak business hours
4-10pm
Relevant categories
Groceries, beer, soft drinks, fruits
and vegetable
Relevant categories
Beer, cigarettes, soft drinks and
snacks
Exhibition points
Coldbox, racks and additional
exhibitions
Exhibition points
Cold room, fridges or coolers
Communication points
Posters, flexiblocks, pricing strips,
stickers, pennants, and banners
Communication points
26
MOM & POP
SMALL PROXIMITY STORE WITH FEW CATEGORIES
AND MANAGED BY FAMILIES 30 M2
Tags and posters in coldbox,
racks and additional exhibitions
ON-TRADE MARKET VISIT (EVENING)







TEAM A+B
ROMA AREA
CERVECERÍA
DE BARRIO
CHUCHITO
PÉREZ









27
ALL
POLANCO AREA
DINNER AT NO 20
ALL
POLANCO
NEIGHBORHOOD
GRAVITY
TEAM C+D
CONDESA AREA
CELTICS
PATA NEGRA
MALA FAMA
ASERRÍN