Heineken (HEIA NA): Buy: Good upside but new leadership questions emerge

Research evidence excerpt

Heineken (HEIA NA): Buy: Good upside but new leadership questions emerge

ew CEO’s inexperience in the beer industry and across 88.00

three major disciplines that beverage CEOs seem to master in order to win in 74.50

the product and capital markets. First, on demand creation, the new CEO does

61.00

not have a brand development and innovation record. He is not a marketer. Second, 06/25 12/25 06/26

on demand fulfilment, the best brewers sell, deliver and merchandise across millions Target price: 85.00 High: 80.12 Low: 64.46 Current: 72.56

of fragmented points of sale with a focus on market development. This is vastly Source: LSEG IBES, HSBC estimates

different from Mr. Oliveira’s experience at Kraft-Heinz (KHC US, USD22.47, Hold).

Food industry shelf replenishers rely on third-party vendors for the fragmented trade. Carlos Laboy

Global Beverage Head, LatAm Food Analyst

Third, balancing the long-term time frame needed by demand creators and the short- HSBC Securities (USA) Inc.

term efficiency requirement of demand fulfilment executives is a delicate balance. carlos.a.laboy@us.hsbc.com +1 212 525 6972

Reinforcing both with proper incentives is a big test for Mr. Oliveira.

Sorabh Daga*

Analyst, Global Beverages, LatAm Food

Commitment cannot be ignored. On 1 April Mr. Oliveira accepted the role of CEO HSBC Securities and Capital Markets (India) Private Limited

at Keurig’s Global Coffee Co. Keurig Dr Pepper’s (KDP US, USD30.87, Hold) board sorabh.k.daga@hsbc.co.in

+91 80 4550 2627

sought steady leadership and commitment as the firm intends to split the entity into

Santiago Bringas*

two publicly traded companies later this year. However, Mr. Oliveira’s tenure didn’t Analyst, Global Beverages, LatAm Food

last even three months as the CEO of the coffee operating unit at KDP.