Heineken remains refreshing

Heineken is the world’s third largest brewer by volume with it coming in behind AB InBEV and SAB Miller. The group is benefiting from its exposure to developing markets, a strong innovation rate and premium beer brands. A large family shareholding in Heineken has led to a focus on the long-term.

Adriann Heineken founded Heineken in Amsterdam in 1864 and as such it is a European company with a long pedigree. Tourists to Amsterdam can visit the Heineken Experience where Heineken was brewed for over a hundred years.

Heineken’s global brands

Source: Heineken investor presentationThe longevity of the business illustrates the attraction of consumer staple groups for investors. They are generally able to withstand the test of time and therefore compound value over the long-term.

In terms of the brewing industry and volumes have been fairly subdued in Western countries given the shift towards healthier lifestyles. However, companies with premium brands and new products have fared well.

Developing countries are seeing volume growth and have attracted significant investment from the industry. Heineken is well positioned with 64% of beer volume and profits generated from developing markets in the first half of 2015.

Heineken’s developed amp; development market...