Digital transformation and merger integration lift Heineken’s consulting bill
Heineken ramped up its central consulting spending by more than 20 percent in 2017, says the website consultancy.uk in a report released on 30 March 2018. The brewer has been seeking to reposition itself, as well as pushing for a digital transformation agenda to secure profits in the long-term.
According to the report, Heineken has consistently sought the advice of consultants, with advisory specialists aiding the firm in matters including the succession planning of what is still considered a “family business”, and the rejection of a takeover bid by SABMiller in 2014.
Heineken is the Dutch market leader, one of the leading brewers in Europe as well as a major beer exporter to the United States. To maintain its lead, the brewer has upped its annual consulting spend to its highest rate since 2014, in a 21 percent boost over 2016.
According to the company’s latest financial statements, Heineken spent EUR 169 million (USD 207 million) on consulting industry expertise in 2017, mainly for pushing its digital transformation agenda and for integration work following the acquisitions of US craft brewer Lagunitas, the Brazilian business of Japan’s brewer Kirin, and the UK’s Punch Taverns pub portfolio, among others.
The EUR 169 million total averages out at the rough equivalent of EUR 2,100 per employee being spent on consulting services, according to the report. The current level of expenditure is comparable with 2011 and 2013 when EUR 166 million was spent on advisory services – a bill with similar motives behind it, as Heineken spent a large sum on consultants when it took over Asia Pacific Breweries.
