Gerard Adriaan Heineken purchased the De Hooiberg brewery and founded Heineken in 1863. Because he adhered to the highest quality standards, treated his employees well, and offered a money-back guarantee to his customers, the company became an immediate success. With demand spanning across Europe, Heineken’s success was great with year after year growth backed by additional breweries. Heineken was first exported to America in 1880. Gerard Adriaan Heineken’s adoption of the bottom-fermenting brewing process, in combination with the use of the best raw materials, gives Heineken pilsner a distinctive European taste providing Americans with an alternative to the neutral light taste of the mass produced American beers. The development of Heineken’s A-yeast forms the basis for the distinctive taste and drives the company to focus on quality. However in 1920 Heineken’s growth and expansion into the US market was halted with the passage of Prohibition into law, which forbade the sale of any beverage containing more than 1.5 percent alcohol. Throughout the rest of the world, Heineken continued to focus on expansion.

 

The sales of Heineken continued to climb until the outbreak of the First World War, as exports which started at the end of the nineteenth century, were energetically pursued. The enthusiasm for exports resulted in shipments of Heineken Beer to Belgium, the United Kingdom, West Africa, and the West Indies.

 

The Heineken brand seized the opportunity to become the first non-American beer to enter the market when in April of 1933 Prohibition was repealed. The first shipment of Heineken Beer was unloaded in the port of Hoboken, a mere three days after the end of Prohibition. To support the re-entry into the market, the brewery appointed Leo Van Munching as its US sales promoter and named the Boston firm, Maynard & Child of Boston, its official importer. Leo’s appointment produced immediate results; sales of Heineken more than doubled over the last half of the decade. Leo knew if Heineken was to be truly successful it would have to make a name for itself throughout the US, and Leo believed that the 1939 World Exhibition in New York was the perfect opportunity. Leo opened the Heineken Pavilion at the World Exhibition and American visitors were highly enthusiastic about this little piece of Dutch glory. More than 8,500 barrels of Heineken were consumed and the brand ended up earning the title of “The Peer of Beers”.

 

The success and momentum Heineken earned in the 1930’s was short-lived when in May 1940, during World War II, the Netherlands which was occupied by German troops, quickly put an end to the export of Heineken beer. The effect on the US market was immediate as Leo tried to keep up with the public’s demand for Heineken. Leo was able to obtain beer from the Heineken brewery in the Dutch West Indies, but in 1942 that supply dried up as well. With all options exhausted, Leo could only wait and hope the war would end quickly.

 

Finally the German army surrendered and the Netherlands was free again in May 1945. However gaining Dutch freedom was only the beginning as by the end of the war, Heineken suffered from manpower and raw material shortages, as well as significant damage to its breweries. The US market was also struggling after years without product, as Heineken, along with all other imported beers, had disappeared from the US market. The challenge on both sides of the ocean was how to rebuild.

 

Rebuilding began with the brewery appointing Leo as the exclusive importer of Heineken in the US. After years in the business, Leo knew the US market well and had good contacts in both American and Dutch circles. As Leo worked on preparing the market, the brewery focused on production. Initial production runs found it difficult to maintain the high quality on which Heineken has built its reputation, but by the spring of 1947, the production issues were resolved and in the months of April and May Heineken accounted for 99 percent of all Dutch beer exports to the US.

 

The sales of Heineken in the US during the 1950’s took off with some of the success credited to the import status of the beer. Although it cost 20 cents more than the average domestic beer, Heineken launched its advertising campaign under the motto “Heineken Tastes Tremendous” and sales continued to climb. As the decade came to a close with Leo celebrating his 25-year role as an importer, Heineken toasted his success by giving Leo and his son a lifetime contract to serve as America’s exclusive importer of Heineken beer.

 

In 1968, the acquisition of its chief rival in the Dutch market, Amstel, would lead to the introduction of the Amstel Light brand into the US market in the early 1980s. By the year 2000, Amstel Light would become the number-one-selling imported light beer.

 

Heineken was selling 2 million hectoliters per year in the United States by 1970, and the American beer industry was still growing. The Baby Boom generation was reaching legal drinking age, which had been lowered to 18 in most states, based on the “old enough to fight, old enough to drink” rationale induced by America’s involvement in the Vietnam War. As a result, Heineken was able to reach yet another milestone in the US market by achieving the status of the number one imported beer.

 

During the 1980’s Heineken continued its substantial growth in the United States. The “conspicuous consumption” associated with this decade, and interest in high-end items was of substantial benefit to Heineken. During this decade there was also dramatic increase in the light beer category in America which led Heineken to a difficult decision. Get involved in a category that had no volume in its home market, or stay out of a very strong growth segment in the industry. The company’s innovative answer was introducing a new product, Amstel Light. Since perching the Amstel brewery in 1968, the company had global rights to the Amstel trademark which had not been sold in the US for a number of years. The key beer consumer, the twenty-something male, who was unaware of the brand, quickly made Amstel Light the best-selling imported light beer in the United States.

 

The 1990’s was the most significant decade for Heineken, since the entry of the brand into America in 1933. Leo van Munching, Jr. decided to sell his company to the brewery. He completed the sale in 1991, but retained management control until January 1, 1994. Heineken appointed Michael Foley as its first president of van Munching and Co. in the fall of 1993, and in 1995, the company reached its first major milestone, the 40 million case plateau. Also in 1995, the company changed its name to Heineken USA and in April of that year, moved from Manhattan to White Plains, New York. Volume and profit growth for the company accelerated and soon the company became known for innovative, intelligent and thought-provoking advertising for both its Heineken and Amstel Light brands. The company reached another milestone in 1999 by passing the 50 million case mark and celebrated the event at the company’s first national distributor conference in San Antonio in October.

 

As Heineken USA entered the new millennium, it continued to be a leader in the imported beer segment. In 2004, Heineken USA entered a historic agreement with FEMSA Cerveza of Mexico, that made Heineken USA the sole and exclusive importer, marketer and seller of FEMSA's beer brands in the United States. The three-year agreement signed between Wisdom Import Sales LLP, FEMSA Cerveza's wholly owned subsidiary, enabled Heineken USA to assume responsibility for the marketing, sales and distribution of the beer brands Tecate, Dos Equis, Sol, Carta Blanca and Bohemia across the United States. 2006 was a historic year for Heineken USA with the launch of Heineken Premium Light and the incredible growth across the entire Heineken USA portfolio. The new imported light beer, brewed specifically with domestic light beer drinkers in mind, offered consumers an extraordinary smooth and light taste experience with all the premium cachet of a Heineken. The introduction of Heineken Premium Light signified the brand’s first major extension in a celebrated 133-year history. Heineken USA launched Heineken Premium Light with an initial goal of selling 5 million cases by year’s end. The goal was achieved in just six months with Heineken Premium Light sales exceeding 5 million cases by the end of September.

 

In April 2007, Heineken USA and FEMSA Cerveza finalized a ten-year agreement extending Heineken USA’s role as the sole and exclusive importer, marketer and seller of FEMSA's beer brands in the United States. Based upon the terms of the agreement, Heineken USA will continue to manage the marketing, sales and distribution of Dos Equis, Tecate, Sol, Carta Blanca, Bohemia brands in the United States. As an organization, Heineken USA continues to power ahead and capitalize on the strength of its powerful portfolio, its work force and its network to drive its leadership in the Import beer segment in the U.S. The future looks bright!