Can Heineken (Euronext:HEIA) become the beer drinkers version of Starbucks (NASDAQ:SBUX)? That is exactly what the beer company is hoping to accomplish by starting to create a chain of Heineken bars in airports around the globe.The European beer maker has decided that airports would be the perfect choice for testing out the concept of Heineken bars. On this point I would probably have to agree.
For whatever reason, when people wind up getting stuck in an airport on a long layover chances are they decide to go kill time in the nearest bar they can find. I am not suggesting that this is the best way to kill a couple of hours, but statistically this is the reality of it. Beer is the second most popular drink in airports, second only to coffee.
The first of the Heineken bars showed up in Hong Kong and definitely puts the Heineken brand in full view of every patron that hits the bar. Heineken bar stools, t-shirts, monitors with Heineken ads, Heineken sports events, and more. Heineken will not be the only brand of beer available to buy, but it will be the only brand on tap.
So the question is, can Heineken duplicate the success of the Starbucks experience? I think that it will probably see some success in the airports, but I don't think that they will be able to take that success and move it onto Main Street America.
While the Starbucks success was powered by offering a high-end espresso drink that until that time had no real brand loyalty, beer is a completely different story. Beer drinkers typically know exactly what they are after when they head to the store. Sure, those who pride themselves in checking out all the new and latest micro-brews to hit the market may vary their purchases, but most of us know exactly what we are going to pick up. If you aren't a fan of Heineken, what are the odds that you would decide to go hang out in a Heineken bar instead of your current watering hole? Not too good if you ask me.
So in my opinion, the airport idea is a good one, but don't expect to see too many (if any) Heineken bars popping up in your town anytime soon.
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.
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Reader Comments (Page 1 of 1)
3-19-2007 @ 7:56AM
gompy_usa said...
Same was said when Starbucks opened. If we would really listen to analyst, we all would be bankrupt.
I bet you, it will be a success.
3-20-2007 @ 4:14AM
Jos Lemmers said...
Your column seems to ignore the fact that the market segment of Heineken has actually increased steadily over the past few years, particularly thanks to the addition of low-alcohol varieties. Beer drinkers may have brand loyalty, but this is not a permanent fixation. Clever marketing strategies, such as the aiport counters, may well add a new dimension to the popularity of the Heineken product and consequently further increase its segment of the market.
Jos
3-22-2007 @ 5:10PM
ericsmusclecars said...
Im all in.......where do I sign.....Good Beer !!!
www.ericsmusclecars.com
3-22-2007 @ 5:14PM
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3-22-2007 @ 5:51PM
MarketingGuy said...
From a brand architecture standpoint, this is a brilliant move.
Heineken is perceived as a premium brand of beer; the visibility alone makes it a little more of a non-premium commodity -- an everyday brew. The airport bars will heighten both consumption and awareness, which will in turn lead to stronger retail sales and bar/restaurant interest. The Heineken-is-everywhere perception will also help distributors get the brand on tap in places they've previously been shut out of.
It won't be a Starbuck's-like domination, but it doesn't need to be in order to be financially viable and brand smart.
3-22-2007 @ 6:50PM
Dennis said...
I think it's a terrific marketing strategy. I for one think Heineken is the best beer in the world.
Heineken is always appearing in Hollywood movies and from what I've seen, typically attracts a refined drinker ( one who truly appreciates the flavor of beer ). Heineken just seems to associate with class, unlike our domestic " King " who seems better at associating with rednecks and Nascar .
I give Heineken two thumbs up for this one !!
3-23-2007 @ 12:07AM
roy sewell said...
I think beer is beer, after the first few thay all taste the same. Who ever thought of this concept knows what thay are doing, and I bet it takes off big time, and all the other beer makers are going to say "why did we not think of this.
3-23-2007 @ 8:13AM
samikawar said...
Amman airport is an excellant location, what do you think paul. lets do it, investors are available
3-23-2007 @ 10:16AM
David Garrett said...
If they can do for beer what Starbucks did for coffee, I'm all for it. I, for one, would love to see a clean, well-lighted, smoke-free Heineken Bar in my city. If Heineken can offer a friendly environment and a good variety -- perhaps include local microbrews -- I think such a business would be very popular, especially after a long work day. Of course, they would have to abide by the various local alcohol laws, which might complicate the concept. But, hey, it's worth a shot... or should I say a pint!
3-31-2007 @ 6:28PM
Greg R. Gibson said...
I think it's an excellent and colorful idea of having Heineken bars in the airport during layovers. Heineken bars would be unique because of being well known for their color of green, and now flourescent green for their lighting (glow) comfort atmosphere. Even their trademark name has a touch of class. Now a suggestion on the humor side. Maybe put up a sign the size of a business card saying "Please Drink Responsibly", and or visit my web site at: http://www.wolfball.com and I'm sure out of five of my trademarks you'll find my Designated Drive good humor.
4-13-2007 @ 6:34PM
Hawk said...
A Heineken bar would be a great idea!
However, what's all this crap about "smoke-free" in one of the comments? Haven't you anti-smoking fascists done enough damage already? It should be up to the franchise owner (or, at most, the company) to make that decision, and if customers don't like it, they can protest by going somewhere else. There is no law that says a person cannot open a smoke-free bar, so why make a law that says a person cannot open a smoking bar? That's a bunch of fascists inflicting their desires on other people. Claim it's for the health of the employees? How many bar employees do you know who do not smoke as compared with those bar employees who do smoke? Stop trying to make other peoples' decisions for them, and stop trying to impose your decisions on other people. Fascist!