Heineken to boost marketing spend by €100m after profit slump

by Jennifer Whitehead, Brand Republic 22-Feb-05, 14:20

LONDON - Heineken has vowed to spend an extra €100m (£70m) on marketing after seeing profits slump by a third and forecasts of further falls this year.

The Dutch brewer reported a fall in net profit for the year of 32.7% from €798m in 2003 to €537m.

The €100m extra on marketing will be spent in the key markets of the US and Western Europe, bringing Heineken's total marketing spend to €850m.

Thony Ruys, chairman of Heineken, said: "In 2005, we will invest an additional €100m in innovation and high-impact, aggressive marketing programmes in order to reinforce the Heineken brand equity in the US, to further improve volumes and sales mix and to address the changing consumer dynamics in Western Europe."

The brand retains Clemmow Hornby Inge for its UK advertising. The agency recently created a campaign starring 'Goodfellas' actor Ray Liotta, where the hardman actor visits drinkers who have failed to finish their pints.

The brewer has also embarked on its first direct marketing late last year to push its premium lager. That campaign was created by CHI's below-the-line agency Hall Moore CHI.

Along with the investment in marketing, Heineken said that it would focus on cost reduction across the business, with the aim of saving €50m by the end of 2007.

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