behind the Brew Issue 3

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in Focus EverGreen 2025 will shape the future of our business. Ashleigh Lloyd, our roving reporter, heard firsthand more about our bold and exciting strategy and the impact it will have in the UK at the recent Leadership Event in London. EverGreen on the agenda Following the Global launch of our EverGreen strategy in October, the Leadership Team came together last month to explore, in depth, how EverGreen 2025 will shape the future of our HEINEKEN UK business – delivering superior and balanced growth. A strategy for now and the future David Flochel, Managing Director, kicked off the day, reminding attendees that throughout our 157-year history, HEINEKEN has continued to evolve and EverGreen 2025 is the next step in this evolution. Inspired by nature’s resilience and its ability to adapt and renew itself, our EverGreen strategy is a multi-year journey which focuses on both continuity – honouring and building on what has made us great – and change – adapting to an evolving market and futureproofing the company as we look ahead to the next 157 years. We know it’s not the biggest or the strongest that survive, but the most agile and adaptable, and this is especially true when we look at the disruption happening in the market today. Our success will rely on our ability to respond to current times while staying true to our company values and heritage. EverGreen 2025 comes together as a new strategy on a single page, encapsulating our new Purpose, Values and Behaviours and clearly defining our Dream, where we’ll play and how we’ll win. Unlock the full potential of our people In an interactive People-centric session, the team were asked to explore the impact of culture on our business and our colleagues. Embracing the skills that enabled success pre-COVID-19, whilst developing new skills to cope with new realities and challenges, they discussed how our Behaviours can encourage ‘real conversations’ between colleagues. The team also looked at the steps that need to be taken now to support and develop our teams to deliver our EverGreen 2025 ambition. Watch out for a Leadership Pledge in the new year! Optimising Availability, leveraging Sequoia Our 2022 targets then came under the spotlight, with a focus placed on optimising product and service availability – and leveraging Sequoia, which is a Europe-wide project aimed at optimising our supply chain. Securing availability for Christmas is our immediate focus as a business before shifting our attention in 2022 behind delivering our plan, making our supply chain more efficient and fundamentally altering our longer-term availability strategy as we target 98.5% OTIF service levels. Driving Superior Growth Next on the agenda was Driving Superior Growth and the three key principles which can help when planning for growth: • Insight – matching our portfolio with where consumer demand is today and will be tomorrow. • Making bold choices – scoping out where to play and defining what success looks like. • Backing ourselves – executing our 2022 gameplans in both the on and off trade and knowing how to win. 6
Raising the bar on Sustainability & Connectivity The day came to a close with a look at the plans we’ve in place to ensure we’re winning in the area of sustainability and responsibility, before reviewing the steps we’ll be taking over the next three to five years to revamp our digital journey and become the bestconnected brewer, to serve customers and consumers who are increasingly looking to buy our brands online. Our EverGreen 2025 ambition By the end of 2025, our global ambition is to: • Increase our revenue to mid-single digit growth. • Increase our operating margin by 17% by 2023 and operating leverage beyond. • Increase our capital efficiency. • Cut our CO 2 emissions by 50% in production. Our Green Diamond is our ‘yardstick’ for success against our balanced growth ambition. It will ensure that we strike a balance between short-term delivery, long-term sustainability and between top-line growth and overall value creation. How we’ll get there... Nothing More, Nothing Less 2022 is year one of our EverGreen 2025 strategy. It lays the foundation for future growth and outlines the direction of travel for our business over the coming years. Placing a focus on cultural shifts, we’ll create a sense of belonging through our new Purpose, Values and Behaviours as we continue to meet the demands of a fast-changing world. Becoming more externally focused and stepping-up our consumer and customer-centricity will be key. We’ll place bigger bets on our premium beers, ensure there’s Always A Choice with 0.0 and do more to stretch and go beyond beer, to win the hearts of customers and drinkers and regain momentum in the cider category. We’ll maximise our pub estate too, enhancing our use of capital and creating fantastic drinkers experiences of our brands. We must place continuous focus on productivity to free up resources and reinvest in growth, whilst being bolder with our technology agenda and tackling the digitisation of our business with more urgency. On top of this, we’re raising the bar on our environmental and social ambitions by continuing to champion responsible consumption and prioritising the implementation of our 2022 Carbon Neutrality plans, both of which are woven into our Brew a Better World 2030 commitments, which you can read more about in this issue of Behind the Brew. We shared more about our EverGreen 2025 strategy and our Nothing More, Nothing Less plan for 2022 at the All Colleague Townhall on 6th December. If you missed it, you can catch up on the event website. Here you’ll find recordings from the event, along with other pre-recorded content from the Leadership Event and a number of videos bringing to life our new Values, our Brands and our Brew a Better World agenda. 7
Page 1 and 2: Behind the BREW what’s going on i
Page 3 and 4: 24 30 12 Contents End of Year Messa
Page 5: "EverGreen 2025 will help us meet t
Page 9 and 10: “Our overall aim is to achieve 98
Page 11 and 12: Social isolation is not something t
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Page 15 and 16: Together in Electric Dreams Ahead o
Page 17 and 18: "Better soil health means better cr
Page 19 and 20: Green Energy in Our Breweries Andy
Page 21 and 22: "To date, we’ve invested £450,00
Page 23 and 24: Get a Green Grip Steve Waygood, Hea
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Page 27 and 28: Kelly Borland Digital B2B Product O
Page 29 and 30: “We’re encouraging consumers to
Page 31 and 32: Celebrities Assemble So, we had our
Page 33 and 34: With a view to creating the first g

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