Enter our Snapshots of Summer photography competition
In an interview with The Times, Rob Marijnen, its UK managing director, said that the withdrawal of the campaign starring Ray Liotta, the star of Goodfellas, did not mean it was cutting back on expenditure on marketing and promotion. “We’re spending £6.5 million on TV commercials currently. Next year, the total marketing budget will increase, only there won’t be any TV ads,” Mr Marijnen said.
He said, however, that the beer would maintain a presence on British TV after the company’s decision in June to replace its Amstel brand with the flagship Heineken brand as the title sponsor of football’s European Champions League.
The brewer will also continue to receive high-profile exposure from its sponsorship of rugby union’s main European club competition, the Heineken Cup, which kicks off today.
Mr Marijnen said a new poster and print campaign would run next year, and point-of-sale initiatives would be stepped up.
Heineken plans to repeat the consumer taste tests held in the summer as part of its campaign to convert drinkers to the premium-strength lager brought in almost three years ago to replace the standard-strength Heineken Cold Filtered previously sold in Britain. A double-decker Heineken bus with a bar visited supermarkets and events throughout the country to offer taste tests. Mr Marijnen said that the results, showing that 68 per cent of respondents preferred Heineken to Stella Artois, had persuaded him to repeat the exercise next year.
He said that the heavy investment in marketing was important for Heineken as it sought to recoup some of the sales lost after it stopped producing Heineken Cold Filtered and started selling its 5 per cent ABV premium-strength lager.
At a stroke, its £500 million of annual sales shrunk to about £100 million and the investment needed to re-establish the business means it is no longer profitable.
But Mr Marijnen said sales were improving and would hit £130 million to £140 million this year. The business was on track to become “profitable and sustainable”, despite its unwillingness to become involved in the heavy price-discounting prevalent in supermarkets and off-licences. “Our aim is to achieve a 5 per cent to 10 per cent premium to our nearest competitor.”
Heineken is also spending to promote its Amstel brand, which vies with Carling, Foster’s and Carlsberg in the standard lager category, and Moretti, its Italian beer. A fourth brand, Edelweiss, an Austrian beer, is about to be launched on draft in the All Bar One chain.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the collective power of smart thinking. Submit a solution and be in with a chance to win a Flip MinoHD Camcorder
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
42,945
2008
71,450
Car Insurance
Not Specified
MI6
UK-based
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Save up to £1,000 per couple with Elite Vacations at the five-star Constance Lemuria Resort
and do the British Isles this Summer.
Save up to 60% with Oxford Hotels and Inns
Try our inspiring luxury holidays to the Indian Subcontinent and South East Asia.
Great offers available
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.