on-premise like working with operators
to develop specific recipes around differ-
ent beers, and hosting expert-led beer and
food dinners.
Beyond the Green Bottle
Strongbow Cider, the number one cider
in the UK, is the most recent addition
to the Heineken USA portfolio, and is
representative of the company’s forward-
thinking agenda: “We want to be the
leaders in upscale and we are making ef-
forts to stay on top of trends and offer
new things—the cider draught potential
is enormous here and the category is
growing,” says Libonate.
Also targeting the on-premise, Ams-
tel Wheat Beer on draught was launched
a year ago in nine markets in select ac-
counts. Wheat beer is one of the more
popular styles today, and Amstel’s version
tastes very different from Amstel Light
which is a lager/pilsner style.
Newcastle is still relatively new to the
portfolio—acquired five years ago—and
has been a big hit on-premise. Interesting-
ly, consumers often mistake it for a craft
beer (even though its an import) thanks
to its “quirky, fun vibe which is unlike a
lot of stodgy imports,” Libonate believes.
Some of the most impressive growth
in Heineken USA’s portfolio is coming
from the Mexican portfolio, led by Dos
Equis Lager and Amber. “Our great ad
campaign has had a lot to do with that,
but it’s really the quality of the beer that
is the growth driver.” Dennehys took a
chance on Dos Equis this summer and
was surprised by the fantastic reaction:
“
Mexican beer on draught is rare, par-
ticularly in an Irish pub, but as soon as
we put it in, we had to reorder.” Tecate,
whose target market is the Mexican-
American consumer, just unveiled Tecate
Michelada, the first-ever michelada in a
can format. (Recent ads in English are
evidence of the brand reaching out to a
broader market).
Riding the Upscale Wave
All news in the beer world these days
seems to revolve around the craft move-
ment, which is indeed growing by leaps
and bounds. Rather than fear the move-
ment’s growing market share, Libonate
sees it as overwhelmingly positive for the
industry—and for Heineken. “What craft
beers have done for this country in the
last decade is amazing, and the upside for
us is that upscale beer consumers are in-
creasingly seeking quality.”
While in the past it was a choice be-
tween Miller, Coors and Bud, consumers
now have hundreds of choices, and they
are much more curious about—and have
higher expectations for—their beer. So,
more than the craft revolution, what Li-
bonate sees is a quality evolution: “Yes,
they seek local, cute stories, but end of
day, beer drinkers are seeking quality.
That is the most important thing.”
Seasonal releases and limited edition
bottlings have been a way for Heineken
to offer the specialist, artisanal feel and
variety that consumers have come to ap-
preciate, thanks to craft movement. Den-
nehys has been particularly impressed
with Newcastle’s seasonal portfolio: the
Summer Ale was one of his biggest hits
during the warm weather, and he has just
put in the fall release, Werewolf, with
good response.
Trade and consumers can only expect
to see more along these innovative lines
from Heineken, Libonate promises: “A
generation ago, people knew what they
wanted when they went into a bar, but
that is really shifting, particularly with the
Millennial consumer. The U.S. consumer
is not slowing down in its thirst for new
and unique beer experiences.”
■
Heineken USA
★
“
A generation ago, people knew what
they wanted when they went into a bar,
but that is really shifting, particularly
with the Millennial consumer.”
