Heineken Global Duty Free has reported double-digit sales volume growth versus 2018 in its duty free business (Cruise, Ferries and Inflight). The growth is driven by increased distribution for its portfolio of over 250 brands.
“There is also notable growth in the demand for lo/no alcohol options and this has delivered 73% sales volume growth for Heineken 0.0 (2019 v 2018),” says Kateryna Vasylchenko, Trade & Category Manager Global Duty Free, Heineken.
Heineken reports that it now commands 38% inflight market share across its portfolio.
The double-digit growth is driven by “significant” new listings in all regions including easyJet in co-operation with Gate Retail, Emirates, Xiamen Airlines, China Southern and Hainan Airlines.
In March 2019, Heineken was awarded a five year-contract extension with KLM and Air France as the exclusive beer offering on both airlines.
Heineken has also seen growing demand for lo/no alcohol offers including Heineken 0.0 and has gained listings on KLM, easyJet, Eurowings/Lufthansa Group and Jet2.
Heineken’s craft beer brand Lagunitas is listed on Singapore Airlines and all major North American airlines including United, Delta and SouthWest. Heineken believes the long-term inflight trend will be led by established global brands supported by a smaller contribution from craft beer, which accounts for 15% of inflight beer consumption.
Cruise and Ferries
As part of the Heineken company’s continued strategic focus on innovation and commitment to delivery brewery quality beer, the global duty free division is expanding its on-ship distribution of Brewlock and Blade professional draught solutions.
“With the continued growth in world tourism, the development of new retail space and the ongoing trend for premiumization onboard cruise and ferry ships, there is a positive outlook for the future of our cruise and ferry business. Over 75% of world cruise passengers are from the US and Europe, with Europe predominantly driven by the UK, Germany, Italy, France and Spain.
“These are markets where our brands are well known and loved. European cruise and ferry travelers are increasingly interested in low/no alcohol beer and cocktails, therefore this category represents a significant growth opportunity for both suppliers and operators.
We feel confident playing in this area with our hero Heineken 0.0. Our proposition will be expanding in the near future with numerous non-alcohol options within our portfolio,” says Vasylchenko.
Heineken Global Duty Free offers a diverse portfolio of beer and ciders, with many strong, regionally relevant brands. These include Birra Moretti, Red Stripe, Kalik, Tiger, Orchard Thieves, Strongbow, as well as Lagunitas, Desperados, Amstel, and Cruzcampo.