World: Heineken makes developing in-house craft beer brands a priority

Heineken has made developing in-house craft beer brands a priority over acquiring smaller players.

Speaking at the Barclays Global Consumer Staples Conference earlier this week, Heineken's management said the company is looking to play a larger role in the craft segment. In a note following the conference, Barclays analyst Simon Hales said the brewer "highlighted the internal development of craft line extensions on existing brands, rather than necessarily via acquisitions of "expensive" craft beer businesses".

In March, the company unveiled H41 - a lager under the Heineken brand with a focus on yeast. At the time of the launch, Heineken said the yeast, from Patagonia, gives the 5.3% abv H41 a "full-bodied" spicy flavour while retaining Heineken lager's fruit notes.

The launch came six months after the group bought a 50% stake in Californian craft brewer Lagunitas Brewing Co.

According to Barclays, Heineken is the number one or two beer player in 79 of the 89 markets where it has significant operations.

Heineken told analysts the company also sees opportunities in cider and the low/no alcohol category. Last month, the company launched a 3.3% abv beer in Australia.

08 September, 2016