Dutch giant Heineken is being re-launched with a new premium

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Heineken UK announced this week it had signed a contract with cross-channel logistics specialist P&O European to transport its new premium lager...

Heineken UK announced this week it had signed a contract with cross-channel logistics specialist P&O European to transport its new premium lager from Holland to Britain. But it also admitted that it would not be distributing the beer directly to pubs. When they arrive dockside, P&O will take consignments of kegs, bottles and cans to its own central depot in Lutterworth, Leicestershire, and from there, transfer the cargo to a network of wholesalers. They will then offer it to pubcos, regional brewers and the bigger multiple operators. The Beer Seller confirmed to the Morning Advertiser that it was one of the wholesalers who will handle the secondarydistribution. "We will be taking the new Heineken when it becomes available early in the new year," said Beer Seller brand manager Liz Guilmant. But the £24m set aside and already announced for the complete re-launch of Heineken is only the start (Morning Advertiser, 28 November). Throwing money at advertising and below-the-linepromotional activities will be worthless if the new UK-based company fails to get right its"route to market". From now until the late February start-up date, the Heineken sales team and the branded "tour bus" will be on the road trying to sign up as many converts as possible. On-trade sales director Richard Bradbury insisted: "We will start bringing the beer over in late January or early February, and it will be ready for distribution just as soon as we go live' from 24 February." But he confirmed: "What we will not be doing is delivering direct to pubs. Instead, we are building a network of wholesalers who will take it on to depots operated by pubcos and brewers." Said one leading industry commentator: "This is a tough call. Distribution is absolutely the key these days, however powerful the brand name. The pubcos are beginning to drive every bit as hard a deal on price as the big supermarket chains." The wholesaler network that leads to the pubcos, however extensive, may not be able to offer genuinely nationwide penetration ­ and if there are significant gaps in the distribution chain, Heineken could be forced to aim higher. The logistics provider with the biggest fleet in the market, Tradeteam, is 49% owned by Coors and may be out of bounds. That leaves Scottish Courage and Carlsberg-Tetley, both of which still run their own dedicated, in-house distribution. But Scots owns outright one of the new premium Heineken's most powerful rivals in the sector, Kronenbourg, and would presumably be reluctant to take it on. Likewise, C-T has high hopes for its Carlsberg Export. So it's not going to be easy. "They would have to be the Harry Houdinis of the beer industry to get out of this one," said a rival brand marketeer. But the Dutch giant has not reached its exalted position in the brewing world without pulling strings. A Rolls-Royce distribution network, though, is the minimum requirement ­ because the brand itself will have a massive job on its hands making inroads. Marketing director Leslie Meredith says the dominance of premium lager market leader Stella Artois "threatens consumer choice," and she believes she can take it on. It's a backhanded compliment ­ the Interbrew flagship is twice as big as its nearest rival in the sector, Kronenbourg (32% plays 16%), the two of them putting clear water between themselves and the rest. Simply putting a new brand into the marketplace sets you back at least £10m, according to Coors chief operating officer Peter Swinburn. That's almost half of the money budgeted by Heineken UK for this year ­a sum that has got to pay for heavyweight TV advertising and all the merchandisingparaphernalia considered essential these days. If all else fails, there's always the Heineken bus!

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