FDBusiness.com

Heineken has announced that in order to accelerate the delivery of its global strategy it will make changes to its operating model and ways of working. The changes are designed to allow the business to better focus on growth opportunities, to be more agile in responding to consumer needs in the marketplace and be more cost effective in doing so.

The business will be regrouped around four geographic regions. The existing regions of Western Europe and Central and Eastern Europe will be united to form a single Europe region, focused primarily on the European Union markets. Stefan Orlowski, President Americas, will lead this region.

The existing Africa Middle East region will be combined with Russia and Belarus to form a new region, Africa Middle East and Eastern Europe. Roland Pirmez, President Asia Pacific, will lead this new region.

Marc Busain, Managing Director CM/Heineken Mexico, becomes President of the existing Americas region and Frans Eusman, Chief Business Services Officer, becomes President of the existing Asia Pacific region.

The Head Office organisation, both functional and regional will be streamlined. The roles of Chief Marketing Officer and Chief Sales Officer will be combined at a global level in one Chief Commercial Officer role. Jan Derck van Karnebeek, President Central and Eastern Europe and Global Chief Sales Officer, will assume this position. Strategy development will be embedded in the organisation and the role of Chief Strategy Officer will be phased out. The key functions currently within Global Business Services are now successfully established and so will transfer to the CFO. As a result the new management group will be leaner and renamed Executive Team.

Alexis Nasard, currently Regional President, Western Europe and Global Chief Marketing Officer.

Furthermore, the composition and structure of the management reporting directly to the Executive Team has been redesigned, subject to consultation with the relevant Works Councils. In the coming three months, further work will be undertaken in order to eliminate duplication, streamline processes and simplify decision-making.

Taken together, these changes are intended to underpin delivery of the company’s medium term target of improving consolidated operating margin (beia) by around 40 basis points per annum.

Jean-François van Boxmeer, Chairman of the Executive Board and CEO of Heineken, says: “Our management structure will be flatter, our operating companies more empowered and our cost of doing business lower. The new Executive Team consists of proven leaders who will build on the outstanding work done by the Heinken Executive Committee over the last few years.”

The new structure will be operational from 1 July 2015 with Heineken’s first half performance for 2015 reported under the existing regional structure on 3 August. Restated figures for the prior year and 2015 first half performance based on the new regional structure will be provided at a later stage. “Head Office” will remain as a separate reporting entity.

The global brewing group has also announced a number of departures at Executive Committee level.

Alexis Nasard, currently Regional President, Western Europe and Global Chief Marketing Officer, has at an earlier stage indicated his intention to leave Heineken to meet his ambitions outside of the company. He will leave Heineken on 30 June 2015.

Siep Hiemstra, currently President Africa Middle East, will retire as planned in August 2015, once he has reached the age of 60.

Chris Barrow, currently Chief Strategy Officer, has decided to leave Heineken in July 2015.