As Heineken prepares to meet customers and industry colleagues during the Tax Free World Association exhibition in Cannes (3-6 October 2022), Niek Vonk, Manager Global Duty Free & Travel Retail, Heineken provides a strategic overview of the drinks giant’s global business in the ferry, airline and cruise segments, in this guest article.
Our mission at Heineken Global Duty Free is to be the most relevant brewer of beer, cider and other relevant drinks categories. We are determined to do all we can to ensure our customers maximise the onboard commercial opportunities, writes Niek Vonk.
Global duty free is a unique and exciting channel for us to engage a huge range of consumers from across the globe with our brand portfolio and we are committed to developing our long-term partnerships in ferries, airlines and cruises.
As the industry gears up to full capacity, there are still challenges to face, such as the worldwide supply chain crisis, inflation and the war in Ukraine.
There are many dynamics in play in ferries, airlines and cruises. Strict health and safety protocols are the new norm, operators are focused on becoming more sustainable and on increasing onboard revenue at a time of rising costs and supply chain challenges.
It is in these crucial contexts, that Heineken Global Duty Free is focused on making a big difference to our valued industry partners with our focus on several strategic areas, as part of our long-term commitment to the channel.
Innovating our portfolio to meet changing customer demands
Heineken rejects the one-range-suits-all strategy that used to prevail when supplying beers and ciders in duty free channels. We carefully develop customised portfolios for ferries, airlines and cruises globally, based on journey origin and destination, sharing re-start learnings from other markets and global beverage trends. For instance, we know in different regions, consumers are often looking for no/low-alcohol beers, trusted local brands or more premium, craft options.
Our latest portfolio innovation is Heineken Silver, which is launching now in European ferries and cruises. It is a new, extra-refreshing lager brewed to 4% ABV, crafted using an ice-cold brewing process at -1°C to create a crisp flavour and subtle finish
Perfectly suited to the cruise market, Heineken Silver is carefully balanced to provide a lighter drinking profile that works across a wide spectrum of drinking occasions.
So, whether it’s Heineken 0.0 for the non-alcoholic choice and mindful balanced drinking; or Birra Moretti sharing the true taste of Italy, perfect with food pairings; or Lagunitas IPA for fans of US craft beers; or one of the many local favourites we own, like Kalik from The Bahamas, we have the right beer for the right customer on the right ship or flight.
Above all, we aim to provide a balanced range of draught beers and ciders underpinned by consumer insights to ensure ferries, airlines and cruises globally delight their passengers and maximise sales potential.
Intensifying our commitment to Heineken’s global sustainability ambition
A key priority for Heineken is the roll-out of our ‘2030 Brew a Better World’ global sustainability and responsibility ambition. We are partnering with strategic partners in ferries, airlines and cruises with bold goals, aimed at driving a positive impact on the environment, social sustainability and the responsible consumption of alcohol.
Here follows two key examples launched in 2022…
KLM partnership – brewing with green energy
In February 2022, we announced that 100% of the Heineken and Heineken 0.0 beer served onboard Dutch flag carrier KLM is now brewed with 100% green energy.
Over 2.4 million cans of Heineken and Heineken 0.0, brewed carbon neutral, have since been enjoyed on KLM flights – an important step in a longer journey for Heineken to become carbon-neutral in production by 2030
Heineken Global Account Manager Airlines, Global Duty Free Alexander de Nerée Tot Babberich, comments: “This initiative is part of a long-term strategic partnership between Heineken and KLM to enhance the inflight experience.
“By using the power of wind turbines and solar panels, together with the biogas generated from wastewater treatment plants from two Heineken breweries, we were able to increase the amount of sustainable energy to at least equal to the energy required to brew and package Heineken beer in the Netherlands, where all Heineken beer for KLM is brewed.
“To reach our Brew a Better World ambitions, we know that every step of the journey counts. We are proud to be partnering with KLM on this project.”
Since July 2020, all Heineken beer brewed for the Dutch market has been made with sustainable thermal and electrical energy – an important step in a longer journey for the company to become carbon-neutral in all production sites by 2030.
Sustainable POS in cruises
Within the ferries and cruises sector, Heineken Global Duty Free has introduced sustainable points of sale and merchandising for our customers. Printed materials are replaced with digital formats where possible, while long-lasting POS and merchandising assets made from sustainable and reused materials are prioritised.
To reduce waste, we are developing plans to recover used PET kegs from cruise customers. The aim is to recycle them and bring them back into the market.
Heineken Global Account Manager Cruiselines Christian Klimpke explains: “Doing business all over the world comes with important responsibilities that extend beyond just running a profitable business.
“As well as delivering on our global 2030 Brew a Better World sustainability ambitions, Heineken believes that achieving real and lasting change comes from partnering with others. We are now actively inviting our cruise line partners to join us on initiatives in raising the bar to progress faster towards a net-zero and fairer world.”
Generating value for our customers by motivating their teams
Heineken Global Duty Free recognises what a tough time it’s been for our cruise line partners over the past two years. To acknowledge their sacrifices and to give them a boost during 2022, we have given away a 20-litre Heineken Brewlock keg and a case of Heineken bottles to every bar onboard each ship our customers were operating.
We also gave out free samples of Heineken 0.0 for crew bars. In short, we are saying to our valued ferry and cruise customers: “The first round is on us.”
Heinken Global Duty Free is also prioritising support in driving sales onboard. For busy outdoor pool areas, for instance, we have installed mobile draught beer bars, while detailed sampling plans for Heineken 0.0 include branded merchandising and staff t-shirts for easy and effective execution by our customers.
We also recognise the value our partners place on crew loyalty, so we have developed a range of motivational crew training options such as the Heineken Star Serve Program and interactive games to enhance their product learning and to develop their hospitality skills with the chance to win exciting prizes if they hit sales targets.
Our dedicated e-learning platform enables them to discover more about Heineken’s portfolio of beers and ciders, consumer trends and insights, including our important ‘Enjoy Responsibly’ responsible consumption programme.
Meeting business issues head on
Companies are taking a fresh look at their supply chains and Heineken is no exception. Pandemic-related disruption and shipping bottlenecks have forced many firms to shift from a ‘just-in-time’ supply-chain model to a ‘just-in-case’ strategy.
Within the travel retail sector, Heineken Global Duty Free has decades of experience, strong partnerships with industry stakeholders, and the latest data-driven distribution systems to meet the specific and often challenging requirements of servicing the niche ferry, airline and cruise sectors.
Throughout the trading year, we deliver our product within tightly controlled timeframes to minimise out-of-stock situations– a promise we continue to keep.
*Heineken invites TFWA World Exhibition delegates to enjoy a Heineken at the TFWA Lounge in Cannes. The company is also a sponsor of The Frontier Awards.
