Heineken and Carlsberg to increase marketing spend

Heineken and Carlsberg are both readying marketing drives to boost market share despite reporting mixed performances for 2009.

Heineken and Carlsberg
Heineken and Carlsberg

Dutch brewer Heineken, which owns the Heineken and Amstel brands, says it will increase marketing spend across its main brands in a bid to maintain and improve their premium price positioning despite its forecast that “price increases will be at levels well below those of 2009”.

Jean-François van Boxmeer, chairman of the executive board and CEO of Heineken says it will continue to invest in the growth of its brands “to grow value share”.

The drinks marker made the commitment as it reported that group beer volumes dropped 4.6% last year over 2008 on an organic basis, while revenue dipped 0.2%. Net profit rose 4% to €1.05bn (£920m).

In the UK, Heineken says its brands “outperformed” the UK beer market, which it claims declined by 4.2% last year.

The Foster’s beer brand, it says, grew market share by 2.6% “benefiting from its new brand campaign, extended distribution and improved marketing”, while John Smith’s’ decline was slower than in the ale market.

Carlsberg, which also owns the Tuborg brand, says net revenue declined by 1% to 59.4bn Danish Kroner (£7.04bn) last year, while revenues were flat on an organic basis. Net profit was 3.6bn Danish Kroner (£425m) up from 2.6bn (£308m) in 2008.

The Danish brewer also declared its intent to increase investment “in brands and channel marketing to grow volume and value market shares”.

The company adds that Carlsberg UK “performed particularly well” in 2009, gaining both volume and value share in the on-trade and off-trade channels.

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