Heineken

Introduction

From the beginning of the humanity, we’ve been using beverages to accompany our

food, leading us to take advantage of the different ecosystems surrounding us in order

to get both the best food and the best drinks near to us.

The very first chemical process the human had was the fermentation, and it was used in

a different way around the world, varying the way they accomplished it and the raw

materials.

Several anthropologists assure that a thousand years ago the primitive men elaborated

a drink of roots and wild fruits and they used to masticated them to trigger its alcoholic

fermentation; they drank the left liquid to relax themselves.

Ancient Babylonians drinking beer through straws

From the middle East, beer extended from all over the eastern basin of the

Mediterranean. Egyptians collecting Sumerians methods elaborated a beer they called

“zythum”, using malt, saffron, honey, ginger and cumin to give it flavour and scent.

People from Europe used it to celebrate in family gatherings, religious ceremonies and

triumph over their enemies.

In the Middle Ages would born the “cerevisa monacorum”, beer made by the monks.

The monks improved the aspect, scent and flavour of the beer, keeping the receipt as a

secret.

Between the XIV and XVI century, came out the first brewery factories, having the ones

from Hamburg and Zirtau as the best ones back then.

Guillermo IV issued the first Germany’s beer purity law, this law prescribed the

exclusive use of barley malt, water, hop and yeast for its fabrication.

However, the really beer Golden Age started at the end of the XVII century with the

incorporation of the steam machine in the brewery industry and the discover of the new

cold production formula, and it ends at the in the last third of the XIX century with the

findings of Pasteur related to the fermentation process.

HeinekenHistory

On a night of June 30 of 1863, Gerard Adriann Heineken decided to buy a company

from Amsterdam called “The Haystack”. At the time, the Dutch brewery industry was in

serious decline, meaning he was able to buy the purchase the company for a very

reasonable price. At the age of 22, Gerard Adriann Heineken bought “The Haystack”

brewery on February the 15th of 1864.

Gerard Adriaan Heineken

Heineken had great plans and soon decided to move the factory from the centre of

Amsterdam, to a new building outside the city, where today is know as

Stadhouderskade, with new equipped facilities to put the beer trough a brand new low-

level fermentation process.

Gerard Heineken wanted to introduce a “beer culture” in the cafes from Amsterdam,

targeting the artistic and intellectual elite of the city. And he got it. He continued in other

cities, as the Bierbrouwerij Maatschappij NV factory and the Crooswijkse Singel from

Rotterdam.

The care of quality was extremely important. Most beers were transported to the clients

by ships, and the beer was exposed to uncontrolled climatic conditions that could

compromise its quality.

Actual logo of the company

One of the most evident risks was the yeast, but thanks to the scientific discoveries from

the Doctor C. Linde with the refrigerating machines, as well as the Doctor H. Ellion with

the yeast, Heineken started to get great benefits.

Shortly, a lot of people wanted to visit the factories and get information about the said

innovations.

Heineken was a truly French lover, and he wanted his beer to be the favourite in Paris.

During the World Fair in 1889, Heineken was awarded with the Diplome of Grand Prix.

Previously, he have won a golden medal in Paris and a Diplome D´Honneur in

Amsterdam.

In 1914, following his father death, Henry Pierre took the charge of the company and

encouraged the introduction of new technologies. While the market exportation market

started to grow up, in 1929 the company began to produce its own bottled beer.

Heineken’s bottles were distributed all around the world from this factory, and the vast

majority went straight to the United States and another foreigner markets. This way

Heineken went from a national company, to a multinational one.

Before starting his career as CEO of the company, Alfred Heinken was two years living

in the United States, where he found the power of advertising and the effect of the

Heineken brand, which lead him to release the first Heineken-labeled bottle in 1948.

That is how a long story of advertising campaigns began, centering on the brand and

not in the product, changing both the font and the style in the logo.

Heineken former logos

For many years, Heineken and Amstel had been competing intensely, and both brands

had a market share almost identical to their counterpart both in Amsterdam and the

country.

At the same time, the foreign beer factories were looking for potential factories in the

Netherlands that they could absorb, which was worrying news to Heineken. Amstel’s

Allied Breweries absorption was disastrous for Heineken, and let them with only one

choice: collaborate with them.

During the 70’s, the beer market in Europe was very segmented, and each country had

their own culture with their respective brewer tradition. Heineken wanted to conquer the

“Forte Europe” and replace the other brands of beer.

France was the first target with the buyout of Brasserie de l”Esperence, from

Strasbourg; after this operation was following a majority stake in the Italian group

Dreher.

Besides, transferred the Rotterdam factory to the rural area of the country, starting the

tradition of the company about having a sustainable production from the

environmental perspective.

Ethical Principles/Ethical Code of Conduct Healthcare and well-being

Regard healthcare and well-being for their employees, Heineken claims to work to

maintain a healthy workforce, ensure healthy working conditions and work environments

and enable employees to maintain a healthy lifestyle if they choose.

They also provide a global framework that outlines a basic level of healthcare to guide

what Operating Companies offer employees and their families.

In many parts of the world, the public health system or locally available healthcare

provides sufficiently high standards of care and coverage for employees and family

members.

However, in those markets lacking adequate primary healthcare where Heineken is

active, the Company provides medical services.

This is done especially in the African Operating Companies, with programmes that have

been running for many years. In 2013, they continued their focus on the provision of

healthcare (including malaria and HIV treatment) in Africa. Working with Dutch NGO

PharmAccess they provide HIV medication for employees and their dependents, even if

they leave the Company.

The programme is being extended to new Operating Companies in Nigeria and Ethiopia

where links to existing programmes are being made and the medical staff trained.

Medical care in Heineken’s Operating Companies in Africa

[Some] Heineken’s standards regard human rights

Non-discrimination

Heineken respects the right to non-discrimination. People are employed based on the

principle of equal opportunity, without distinction to race, colour, gender, religion,

descent or origin. In relation to the appointment or career prospects of employees,

Forced labours

Heineken will not engage in or support the use of forced or compulsory labour – such as

prison labour, debt bondage, trafficking or serfdom. Heineken will avoid working with

suppliers or employment agencies that are known to be making use of forced or

compulsory labour in their operation.

Child labour

Heineken respects the rights of the child, including the right to education, the right to

rest and play and the right to have the child’s basic needs met. Heineken will therefore

not engage in or support the use of child labour, which means that Heineken will not

allow children to work within its facilities.

Working hours

Heineken recognizes the right to rest and leisure and will therefore always comply with

local laws, regulations and/or local customs with regard to working hours and overtime.

Moreover, in line with the ILO-report5 of the committee of experts on the application of

conventions and recommendations concerning working hours HEINEKEN will generally

not require its staff to work in excess of a maximum of 48 hours per week (less in some

cases, depending on local laws) and will provide at least one day off for every seven-

day period.

Health and safety

Heineken provides its employees with a safe and hygienic working environment and

working conditions. Heineken will take appropriate measures to continuously improve

safety and health aspects within its facilities, including the provision of personal

protective equipment when and where necessary. Working conditions should allow for

safe working practices and support the occupational health and well-being of

employees. We maintain a policy aimed at continuous improvement of our health and

safety performance.

Security

In politically unstable or conflict affected regions, Heineken may be confronted with

potential security risks to its employees, their dependents and its facilities. When

managing security in those situations Heineken will respect the rule of law and will

adhere to international human rights principles. The company shall prevent its hired

security guards from unlawfully infringing on the rights of its employees or of others

affected by its operations. When necessary, security guards shall be trained how to

behave in such difficult situations and when and how to intervene in security threatening

situations.

Harassment

Heineken considers protecting personal dignity and health at the workplace to be one of

its core responsibilities as a good employer. One aspect of safeguarding the integrity of

each employee is to ensure that harassment in any form does not occur and, if it does

occur, to ensure that adequate procedures are readily available to deal with the problem

and prevent recurrence

Non-complicity in Human Rights violation

HEINEKEN recognizes that in countries that are politically less stable or where human

rights are compromised dilemmas may arise, including whether or how it can continue

to operate in that country with integrity. HEINEKEN will act in such a way that none of

its operations knowingly contribute to human rights violations by others.

Remuneration

Heineken observes the statutory minimum wage set by the government of the country in

which it has a local operation. Where this is not sufficient to meet basic needs,

Heineken strives to compensate employees with remuneration that ensures an

adequate standard of living. Heineken maintains a remuneration policy that emphasizes

the internal equity and external comparability within a defined job market. The key

elements within Heineken’s pay and reward policy are:

• pay for responsibility

• pay for performance

Values and behaviours Integrity

As one of the world’s leading brewers, Heineken promote the enjoyment of beer in

moderation as part of a healthy, balanced lifestyle. Heineken market and sell their

brands responsibly and work in partnerships to reduce alcohol related harm.

The basic principles are clear. Responsible drinking should be portrayed as, for

instance: • a pleasurable personal and social experience;

• a source of enjoyment and relaxation;

• one aspect of a positive lifestyle;

• connected to celebratory events.

In addition, any actors or models used in our communication should be, and look, at

least 25 years old.

Also, Heineken have some guidelines regard not showing people driving after drinking

beer in their ads, nor minors consuming their products.

Cambodia: Beer Promoters

The promotion and sale of beer in bars and restaurants by professional, female Beer

Promoters is an accepted practice in some Asian countries. However, Beer Promoters

are also subjected to potential health and safety risks, which include harassment,

drinking of alcohol with customers, or sometimes, even violence.

HEINEKEN is one of the founding members of the Beer Selling Industry Cambodia

(BSIC). This industry body was established to improve the welfare and working

conditions of Beer Promoters via an industry Code of Conduct for both promoters and

external parties such as their employees and bar owners.

Use of animals in commercials

The appearance of an elephant and a goat in one of the Heineken® brand commercials

(‘Voyage’) generated a small number of comments from animal welfare groups and

consumers. They expressed concerns about the treatment of the animals used in the

ad.

Heineken claim to have responded to all the questions they received and met with

‘Wilde Dieren de Tent Uit’. Heineken also explained that for this specific commercial

“various scenes were made with Computer Generated Images technology, making the

use of real animals no longer necessary. On the rare occasions when real animals were

used they are always treated with the utmost care.

The health of the animals was monitored before, during and after filming by

independent specialists. We fully understand the sensitivity of this matter, and as part of

our ongoing commitment to build stronger brands through responsible communications

we will conduct an internal workshop on this topic in partnership with leading animal

welfare organisation Humane Society International in the first quarter of 2014.”

The Heineken Africa Foundation

Established with an endowment from HEINEKEN of €20 million, the Foundation is able

to invest up to €1 million per year in community healthcare projects in Sub-Saharan

Africa.

In 2013, the Foundation extended their remit to cover water-related projects. At the end

of 2013, the Foundation had committed to 48 projects totalling almost €5 million. Twelve

of these projects began in 2013, including a solar-powered community borehole in

Nigeria, a mobile ultrasound clinic in Sierra Leone and a healthcare project for

homeless people in South Africa.

Direct contributions made locally

In 2013, HEINEKEN Operating Companies contributed the equivalent of around

EUR18.9 million, including cash, time, in-kind donations and management costs1 . In

2013, more than 4,500 employees in more than 40 markets took part in volunteering

activities.

How Heineken contributed in 2013 Where Heineken contributed in 2013

In recent years, their Operating Companies have started to make a change from

responding to ad-hoc donation requests only to seeking out long-term community

investments through partnerships that are aligned with their business and sustainability

agenda. Examples include many of their partnerships with local NGOs and other

community partners to address alcohol misuse and – more recently – local water

challenges.

Motive for contribution in 2013 What they supported in 2013

Heineken’s set of mind is to spread the benefits of commercial activities to the wider

community, benefiting not only Heineken as a business, but also create help to

strengthen the agricultural sector and improve the lives of rural households over time

Conclusion:

Definitely, ethics about selling alcohol may vary from person to person. Some would say

alcohol is bad, some would say it’s not. It will most likely depend on personal

experiences from everyone. As long as you know there is a limit, consuming beer, most

surely, will not be a bad experience.

Beer has been in our society for a long time, it is part of some cultures as well. There

are many flavours of the same beverage all around the world. And it is absolutely a

challenge to sell that kind of product in different countries. Considering differences in

cultures.

As a multinational company, from my point of view, Heineken does its best for both the

company, and the consumer; they have some guidelines to not encourage its customer

to do what he/her shoud by taking care of the company ads, but also they take care of

their employees treating them well and fair.

References

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Pérez Cruz, Y., Campaña Leyva, S., & Corpas González, I. (n.d.). La Cerveza Heineken, origen y evolución. Su comercialización en Cuba. Retrieved July 8, 2015, from http://www.monografias.com/trabajos89/cerveza-heineken-comercializacion-cuba/cerveza-heineken-comercializacion-cuba.shtml

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Sustainability Report 2012. (n.d.). Retrieved July 12, 2015, from http://www.sustainabilityreport.heineken.com/empower/engaging-employees/employees-and-human-rights.html

The Code Of Business Conduct. (n.d.). Retrieved July 10, 2015, from https://www.heineken.co.uk/pdf/HEINEKEN_Code_Of_Business_Conduct_2013.pdf

The HEINEKEN Company - Age Gate. (n.d.). Retrieved July 8, 2015, from http://www.theheinekencompany.com/about-us/our-history

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The History of Heineken. (n.d.). Retrieved July 9, 2015, from http://www.dwcomm.com/static/products/files/36~History_of_Heineken.pdf