Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Authors: Olivier Furrer (Radboud Universiteit Nijmegen); Cees Dekkers (Radboud Universiteit Nijmegen)
Published in: 2011

Abstract

The case describes Heineken’s market entry and difficulties in Kantangese, the richest region in Congo. 2009 has been a mediocre year for Heineken. Revenues and net profit grew slightly, but volume had declined. A notable exception occurred far outside Heineken’s traditional markets. Heineken’s Africa and Middle East division achieved 9.1% growth in revenues, as well as consolidated beer volume growth. A key contributor to these positive results was Bralima, Heineken’s subsidiary in the Democratic Republic of Congo. Heineken had been active in Congo since the 1950s and purchased a majority share in Bralima as of 1987. When the Congo wars ended in 2006, Bralima’s market share increased to 66%, and it earned net profits of approximately $50 million in 2009. And yet in Katanga, Heineken continued to struggle. A brewery that opened in 2008 in the regional capital Lubumbashi had not met its market share and volume objectives. Despite growth in the local market, the brewery never seemed able to match its competitors. Why was Heineken enjoying such profitable operations in the rest of Congo but in Katanga? What should Heineken do in this region with a high potential?
Location:
Industry:
Size:
Large
Other setting(s):
2009-2010

About

Abstract

The case describes Heineken’s market entry and difficulties in Kantangese, the richest region in Congo. 2009 has been a mediocre year for Heineken. Revenues and net profit grew slightly, but volume had declined. A notable exception occurred far outside Heineken’s traditional markets. Heineken’s Africa and Middle East division achieved 9.1% growth in revenues, as well as consolidated beer volume growth. A key contributor to these positive results was Bralima, Heineken’s subsidiary in the Democratic Republic of Congo. Heineken had been active in Congo since the 1950s and purchased a majority share in Bralima as of 1987. When the Congo wars ended in 2006, Bralima’s market share increased to 66%, and it earned net profits of approximately $50 million in 2009. And yet in Katanga, Heineken continued to struggle. A brewery that opened in 2008 in the regional capital Lubumbashi had not met its market share and volume objectives. Despite growth in the local market, the brewery never seemed able to match its competitors. Why was Heineken enjoying such profitable operations in the rest of Congo but in Katanga? What should Heineken do in this region with a high potential?

Settings

Location:
Industry:
Size:
Large
Other setting(s):
2009-2010

Related