United States: Heineken appoints new CEO for its US operations

Dutch beer giant Heineken NV has appointed company insider Dolf van den Brink as the third chief executive in about three years to run its struggling U.S. division, The Wall Street Journal reported on September, 30.

Mr. van Den Brink, currently commercial director and deputy general manager for Heineken's operating company in the Democratic Republic of Congo, will become president and CEO of Heineken USA effective October, 1. He succeeds Don Blaustein, who resigned in August, citing differences with the company's management in Amsterdam about how to run the unit.

Mr. van Den Brink will try to revive U.S. sales of the company's flagship beer, Heineken, which have dropped sharply amid the weak economy, ineffective marketing campaigns and tough competition from rival imports and domestic brews.

John Nicolson, Heineken's regional vice president for the Americas, said in a statement that he is "delighted to have someone of Dolf's vitality, leadership capability and commercial experience to lead our U.S. business."

Mr. van Den Brink faces a tall order. In April, Heineken said its beer volume fell 16% in the Americas on an organic basis, which strips out results from recently acquired brands, in the first three months of 2009. Heineken USA accounts for about 4% of the U.S. beer market in terms of volume.

Under Mr. Blaustein, Heineken USA posted strong results for the Mexican beers it imports from Femsa, including Dos Equis and Tecate. But they represent a smaller share of volume than Heineken, which is the second-largest imported beer in the U.S. after Grupo Modelo SA's Corona Extra.

Mr. Blaustein's predecessor, Andy Thomas, also resigned because he disagreed with Heineken's top executives over strategy.

30 September, 2009