 |
|
| more Dutch stories? |
Heineken and Krups join forces for Beertender
Background
Heineken and Groupe SEB (Krups) will jointly introduce a new product onto the Dutch market this March. Development of the product has lasted over seven years and included, among other things, the design of a new pressure control system. F. Lennsinck, marketing manager for Krups within Groupe SEB, says that: "we have developed a unique system which ensures that the beer is stored in airtight conditions inside the Beertender." The companies' aim is to get its product talked about in the household appliance market and, very importantly, to engineer a change in the habits of beer drinkers. According to Jacobine Lotgerink of Heineken, 70% of Dutch beer drinkers prefer to drink fresh beer from the tap, but until have only been able to buy tap-served beer at a café. From now on, they'll be able to get it at home.
Product and price
The Beertender is made up of two elements - the serving apparatus, equipped with a tap, and a four-litre vat of beer. "The vat contains a kind of 'beer bag' that ensures the liquid doesn't come into contact with air. A pump inside the Beertender creates external pressure on the bag as it is emptied. A cooling element ensures that the beer remains at the right temperature. The vat", Lenssinck continues, " is best cooled beforehand in the refrigerator, but it can also reach the right temperature in the tap itself. It just takes a little longer."
According to Lenssinck, the system is also energy efficient. "The Beertender is will isolated. Once filled and plugged in, the equipment cools and pumps both during and after serving. Electricity costs are around 37 cents per day. Wiring within the vat is cleaned and replaced, where necessary, at the factory."
The Beertender is currently on sale at about 600 selected electronics shops and appliance stores (including Megapool, Expert and de Bijenkorf) and the number of outlets is set to grow.
The beer vat can be bought at most supermarkets and off licenses, including C1000, Dekamarkt and Dirk van den Broek (Dirck III) and a number of independent off licenses. In addition, Heineken is currently in talks with some off licenses who had told the company that they felt excluded and subsequently vented their anger in the media.
The launch price is 249 euros, rising to 279 euros after an introductory period. The four-litre vat of beer costs 8.99 euros, rising to 9.49 euros after launch, with a tax levy of 5 euros. By way of comparison, a crate of 24 bottles of Heineken (7.2 litres in total) costs 9.29 euros, plus tax of 3.60 euros but excluding the cost of the crate (source: Albert Heijn).
Distribution and promotion
Heineken and Krups have a substantial marketing budget, although were unwilling to give a figure. A combination of agencies, including Neboko, Combinatie van Factoren and Winkelmann and van Hessen will work on the account. 150 Beertenders have been given out to prominent, opinion leaders so that they can try the equipment out at home for a limited period. According to Lenssinck, who himself has a Beertender at home, first reactions have been positive and the company has decided to first launch the system onto the Dutch market. "The emphasis this year", he says, " will be on extending distribution and changing beer-drinking culture."
The target market for Beertender is made up of male beer drinkers aged between 25 and 55 years old, who drink at least one crate of beer per month ('medium' and 'heavy' users). Says Jacobine Lotgerink: "We want to establish Beertender as a standard piece of kitchen equipment. We hope it will become an item used daily by all sectors of the population." Beertender is not being positioned as a party item. Nor, according to Jacobine Lotgerink, is it designed as competition for the 'horeca' (eating and drinking outside the home) market. "On the other hand", she adds, "it would be a good system for horeca establishments. We're trying to improve the experience of drinking beer from the tap, make it more relevant. Then people will choose between an in-home or out-of-home experience, not the type of drink."
Heineken and Krups deliberately chose to apply a separate brand name to Beertender, but expects that brand recognition for Krups will be positive. "Krups is a highly-valued brand as we have seen, for example, with espresso machines, and Beertender will make it even stronger." According to Lenssinck, sales are running ahead of forecast, though break-even point remains some way off. The reason for this is the amount it cost to develop the machine. Adds Lotgerink: "Sales are going really well, we are even seeing waiting lists. At BCC, for example, you have to wait one or two days."
What do competitors say?
Peter Swinkels, marketing manager of Bavaria beer: "Beertender is a nice piece of equipment - it looks good, but it's expensive. Maybe the price will prove the decider." Bringing tap-served beer into the home, Swinkels believes, is a neat idea. "To be able to drink beer in optimum condition, you have to have a tap. I'm pleased that Heineken and Krups are opening up this market, not least because we also have our own beer-tap system." Indeed, the Bavaria beertap has been prominently displayed on Bavaria's website since March 1st. The concept is different, however, from that of Beertender. Says Swinkels: "Our tap system is not designed for individual use, but for small social events, such as barbecues or a day at the beach. We therefore sell it in bigger, ten-litre vats. The average Bavaria drinker drinks about half as much again as a Heineken drinker."
Research and development of Bavaria's system took just under two years. Peer Swinkels says: "We don't have as big a marketing budget as Heineken and Krups." Bavaria offers a starter pack for 59.95 euros, consisting of a build-it-yourself bundle complete with a special holder for storing the beer in the refrigerator and which keeps it at the right temperature for extended periods. Each vat costs 22.95 euros, plus 15 euros tax. They can be bought in Laurus supermarkets and will soon be offered by the Albert Heijn chain.
Jacques Happe, communications advisor for the horeca trade association, Koninklijk Horeca Nederland: "Having a tap for serving beer at home is not such a new phenomenon. People have been able to rent them from off licenses for years. Warsteiner, Amstel and a couple of other brands sell five-litre vats with a tap. This is better finished though. It's produced by two multinationals who want to make a joint market entry - there should be more of these types of product. There are obviously enormous advantages for both companies, both on the cost side (joint marketing) and also in terms of distribution (better product margin).
We don't expect in-home use to increase.. the price of the equipment is pretty high. But what it does mean is that tap-served beer is not just for horeca establishments any more and will become more commonplace. This will have an influence on our customers' price perceptions. They will now be able to buy a four-litre vat of beer for around 9.45 euros. That's 2.36 euros per litre - a lot more (per litre) than a crate. So price-conscious consumers will do their sums. And there's another point for the horeca industry. Breweries have always been seen as partners, but now those very same brewers are entering the household market with an apparatus that only previously existed in horeca. It's a tough situation when the only exclusivity that the horeca owner enjoyed should disappear like this. Still, market forces will tell in the end."
At the time of writing, 575 people had given their opinion on whether Beertender would be a 'top' or 'flop', with the score standing at 52% for 'top' and '48% for 'flop'.