Heineken Plans on Increasing Its Beer Footprint in the U.S. Market

As the most lucrative beer market in the world, the United States is the most coveted target of the Big Beer oligopoly dominated by the likes of Anheuser-Busch InBev and Constellation Brands. For respected Dutch brewer Heineken, getting a seat at the Big Beer table means gaining a strong foothold in the American market, and the company is certainly trying to do its best in this regard.

Although the Heineken brand has certainly gained visibility over the last few years, the company’s output pales in comparison to Anheuser-Busch InBev, which sells 90 percent more beer on annual basis. Constellation Brands produces 50 percent more than Heineken thanks to the growing popularity of Mexican beers such as Corona and Modelo. According to a recent article published by financial news site MarketWatch, Heineken’s current U.S. production numbers stand at more than eight million barrels sold per year, which is not enough to compete against the likes of Anheuser-Busch.

Heineken believes that Big Data could help the company enter the Big Beer club. Through extensive market research and evaluation of analytics, the Dutch brewer is learning some interesting facts about beer drinking patterns in the U.S. For example, the image of Americans exclusively drinking Budweiser is a myth; the reality is that the average beer drinker in the U.S. tries about a dozen brands each year. Armed with this knowledge, Heineken has been introducing a variety of brews for Americans to try.

Brewers these days should not expect brand loyalty from beer drinkers in the U.S., particularly with the high level of competition and the numerous brands currently on the market. Heineken is testing the waters with Strongbow, a cider beverage from the United Kingdom. This traditional cider is what Americans would expect to be poured at a British pub; Strongbow is dry and strong, which means that it is no longer a popular choice since cider drinks have become sweeter in Europe.

Heineken has seen good results from the Strongbow taste tests, and the company is now ready to take over the American cider market, which is about four percent of the greater beer market. In addition to cider, Heineken has taken a strong marketing position among American soccer fans; to this effect, the company has entered partnerships with nine MLS franchises.

Last but not least, Heineken is also exploring the craft beer market with the purchase of small breweries such as Lagunitas from California.