Heineken Positioning To Capture Fundamental Growth Opportunities In Africa

China Europe International Business School (CEIBS) African campus hosted its first ever Executive Talk programme on Thursday July 24, 2014 at its Auditorium in Accra, Ghana. The speaker on this occasion was Mr. Siep Hiemstra, President, Heineken Africa and Middle East.

Speaking on the topic 'Reaching More Consumers'. Mr Siep Hiemstra emphasized that Heineken is well placed in Africa and the Middle East to capture growth opportunities by reaching more consumers through an expanded brand offering, strong market execution, developing local talent and capabilities, and increasing local sourcing. He also said that through strategic partnerships that are performance driven, Heineken intend to grow further by increasing its market share and also focus on cost discipline to drive profit growth.

Mr. Seip Hiemstra mentioned that Heineken's renewed global strategy to win builds on its core strengths of unique history and family involvement, the Heineken brand, Marketing excellence, truly global footprint, proven supply chain skills and above all, its passionate, committed, entrepreneurial employees. He stressed the international diversity, deep knowledge and entrepreneurial spirit of its employees as the winning formula.

A healthy population growth, an emerging middle class and rising urbanization are key growth drivers for beer consumption according to Mr. Hiemstra. 'Africa's middle class is expected to grow from 355 million in 2010 (34% of Africa's population) to 1.1 billion (42% of the population) in 2060..' Heineken is set to benefit significantly from this trend through accelerated innovation, building winning brands and activating key enablers of growth. To reach more consumers and to capture fundamental growth opportunities in Africa, Heineken is determined to grow with the continent by investing in local talent, to grow volume, market share and operating profit, he said.

Mr. Hiemstra announced that Heineken has set itself the goal of achieving 70% African management in their African operations by 2020. To accelerate this process, they have developed a modular 2 year programme for developing competencies in key areas of their operations through classroom training and on the job training assignments. In addition to that, there's Functional Competencies development and Leadership Competencies development programmes for talent development.

The President of Heineken, Africa and Middle East enumerated some of the things they are doing to grow with the continent. These include developing local sourcing. At the moment he mentioned that 46% of all raw materials used in Africa are sourced from the continent. The goal is to increase that to 60% by 2020. Heineken engages in public education to encourage responsible drinking, provides healthcare for staff including HIV treatment and prevention, and provide health and water projects through Heineken Africa Foundation.

It is worth mentioning that Heineken has been a strong supporter and sponsor of CEIBS Africa in the past. It offered sponsorship for the Osei Tutu II Center for Executive Education (OTCEER) and also supported the traditional Authorities Leadership programme.The Executive Talk programme was attended by business leaders, Alumni of the school and current students and a cross section of the Ghanaian press.