Heineken 0.0 Closes in on 2 Million Cases; Heineken Returns to Growth

Non-alcoholic brand Heineken 0.0 is pushing toward 2 million cases this year, Heineken USA chief marketing officer Jonnie Cahill shared during last week’s national sales meeting. (Read about the first part, including HUSA’s innovations for 2020-21 here.)

In an effort to accelerate the brand, the company will launch 12 oz. 12-pack cans and 16 oz. single-serve cans.

Heineken 0.0 has claimed 21% of the share of the non-alc market and 29% share of the value. That makes the brand the top-selling non-alc beer brand. And the brand boasts a 30% repeat purchase rate.

“The sky is the limit on this,” Cahill said. “It can be as big as we want.”

The push into 12-packs is strong, with the company seeking placements in both the import and non-alc sections of stores. Why 12-packs? Citing Nielsen data, 40% of non-alc volume is sold in canned 12-packs, and import 12-pack cans are growing 13% for the 52 weeks ending September 5. Cahill said 12-packs represent an opportunity to “blow up this business” for Heineken 0.0.

The message to wholesalers was clear: Drive distribution of cans equal to bottles. Heineken 0.0 bottle placements compared to those of Heineken original are just 38% nationally in off-premise retailers, Sloan said. He added that 6-packs of Heineken 0.0 cans compared to 6-pack glass is just 9% and compared to 0.0 bottles, it’s just 24%.

“So a huge opportunity for us,” he said. “As I said, a couple of million cases if you do the back of the napkin math on the opportunity.”

Heineken original 12-pack cans only have 33% of the distribution of 12-pack glass, which is the company’s No. 1 SKU, Sloan said.

“Just think of the opportunity with only one third coverage,” he said. “So, any place that has 12-pack glass should have a can package as well.”

As for line extensions of Heineken 0.0, Cahill said the company is considering where to take the brand next, but the focus now is on 12-packs. The company is also considering adding slim cans to the Heineken 0.0 mix, and the company is testing Heineken original in slim cans in Florida next year.

Meanwhile, the flagship Heineken brand returned to growth in off-premise retailers in 2020, Cahill said.

“We have fundamentally changed the performance of the brand over time,” he said.

Dos Equis Lime & Salt, Variety Pack and 5L Keg On the Way

Dos Equis Lime & Salt will hit wholesaler warehouses later this year, starting with 24 oz. cans and followed by a variety 12-pack with new flavors in addition to Lime & Salt: Watermelon, Cucumber and Pineapple. The line extensions are meant to open the brand to new consumers.

In an effort to give consumers craving a draft experience at home, Heineken will offer Dos Equis in 5L kegs in November.

Tecate Challenged but Repositioned

In an effort to stem the decline of the Tecate brand, the company is repositioning the brand to celebrate “both Mexican and American values for those Mexican American consumers who are not half American half Mexican or 100% both,” Cahill said.

“We needed to fix everything,” he admitted. “We have overhauled this brand.”

Line extensions are also on the way, including a Lime & Salt and a michelada.