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Operational Strategy In the 1980s, with the increasing consumption of light beer in the
US alcoholic beverage market, Heineken N.V., one of the world’s largest breweries in
Amsterdam, introduced Amstel Light in the US. Amstel Light was the first imported light
beer in the US beer industry. By the mid 1990s, Amstel Light contributed 75% of the
total growth of Heineken’s import segment in the US and became the No.1 importer in
the US beer market. The Hispanic community grew and they demanded ‘high quality
beer’ for which they were willing to pay, ‘high prices’ encouraged Mexican beer (Corona
Light and Corona Extra Light) to enter and subsequently capture the US light beer
market. By 2005, Corona Extra led the market whereas Heineken’s Amstel Light had
slipped to the No. 7 position in the US market for imported beer. To reclaim its No.1
position, the company launched a new light beer called ‘Heineken Premium Light Lager.’
In addition to this, the company also tried to promote its Amstel Light through intensive
promotional strategies.
Pedagogical Objectives:
• The case deals with the different dimensions of the beer industry.
• It analyses the competitive strategies of US beer category
• It deals with the importance of advertising and promotional strategy in alcoholic
beverage industry.
• The case also analyses the concept of brand extension in beer industry.