Heineken N.V. Announces Organizational Changes to Accelerate Strategy Delivery; Announces Executive Changes
Mar 31 15
Heineken N.V. announced that in order to accelerate the delivery of its global strategy it will make changes to its operating model and ways of working. The changes will allow the business to better focus on growth opportunities, to be more agile in responding to consumer needs in the marketplace and be more cost effective in doing so. The key changes are: the business will be regrouped around 4 geographic regions. The existing regions of Western Europe and Central and Eastern Europe will be united to form a single Europe region, focused primarily on the European Union markets. Stefan Orlowski, President Americas, will lead this region. The existing Africa Middle East region will be combined with Russia and Belarus to form a new region, Africa Middle East and Eastern Europe. Roland Pirmez, President Asia Pacific, will lead this new region. Marc Busain, Managing Director CM/HEINEKEN Mexico, becomes President of the existing Americas region and Frans Eusman, Chief Business Services Officer, becomes President of the existing Asia Pacific region. The Head Office organisation, both functional and regional will be streamlined. The roles of Chief Marketing Officer and Chief Sales Officer will be combined at a global level in one Chief Commercial Officer role. Jan Derck van Karnebeek, President Central and Eastern Europe and Global Chief Sales Officer, will assume this position. Strategy development will be embedded in the organisation and the role of Chief Strategy Officer will be phased out. The key functions currently within Global Business Services are now established and so will transfer to the CFO. As a result the new management group will be leaner and renamed Executive Team. Furthermore, the composition and structure of the management reporting directly to the Executive Team has been redesigned, subject to consultation with the relevant Works Councils. In the coming three months, further work will be undertaken in order to eliminate duplication, streamline processes and simplify decision-making. The new structure will be operational from 1 July 2015 with HEINEKEN's first half performance for 2015 reported under the existing regional structure on 3 August 2015. Alexis Nasard, currently Regional President, Western Europe and Global Chief Marketing Officer, has at an earlier stage indicated his intention to leave HEINEKEN to meet his ambitions outside of the Company. He will leave HEINEKEN on 30 June 2015. Siep Hiemstra, currently President Africa Middle East, will retire as planned in August 2015, once he has reached the age of 60. The company said that Siep will remain involved with HEINEKEN as a Board member of Nigerian Breweries and United Breweries in India. Chris Barrow, currently Chief Strategy Officer, has decided to leave HEINEKEN in July 2015.
Heineken to Build MXN 7.5 Billion Mexican Brewery
Mar 11 15
Heineken announced it will invest MXN 7.5 billion in a new brewery in Mexico's northern state of Chihuahua to supply US and Mexican markets. The new brewery will create jobs for about 1,500 people. The factory will initially produce five million hectolitres (132m gallons) of beer per year, but the capacity can be expanded in future.
Heineken and United Nations Industrial Development Organization Announce Partnership to Support Sustainability in Developing Markets
Feb 27 15
The United Nations Industrial Development Organization and HEINEKEN announced plans to work together in a range of sustainability issues that will promote inclusive growth in developing countries. The new partnership will focus mainly on water stewardship initiatives in countries and regions classified as 'water-scarce'. The initiatives will directly support HEINEKEN in the delivery of its commitment to reduce water consumption to 3.3 hl/hl in breweries located in these regions. The activities will initially concentrate on breweries in Algeria, Egypt, Ethiopia, Indonesia, Mexico, Nigeria and Tunisia. The partnership will also investigate opportunities to expand HEINEKEN's Supplier Development Programme to more countries in Africa as part of the company's commitment to source 60% of its raw materials locally and thus improve the livelihoods of local communities. The company currently runs initiatives in nine countries covering more than 100,000 farmer families across the continent. A third component of the partnership will be a feasibility study to identify potential renewable energy sources for breweries in Africa in order to improve both cost structure and environmental impact. It will also examine the potential to provide excess energy to local communities.