Heineken has reported strong revenues of €464 million in the Irish market as part of €4.9 billion worldwide.  The Netherlands  headquartered brewer is one of the world’s leading sporting sponsors and is a strong player in the Irish market as well.
The figures reveal that Heineken now holds 45 per cent market share within the Irish lager market through its multiple brands of Heineken itself, Coors, Sol and Tiger.
Heineken’s reach into sport across the world is immense.  In 2011 it renewed its support for the UEFA Champions’ League, extending a relationship that went back to 1994 through its Amstel brand.  The parent took over the rights in 2004 and the deal now extends to 2015.
The Champions’ League presents global numbers that make almost all other sponsorships pale by comparison.  4.5 billion viewers, 1.1 billion of whom watch live matches and exclusivity for each of the six partners in all of the countries where the tournament is both played and shown.
UEFA takes over each venue for marketing purposes ensuring that Heineken is front and centre stage of all coverage.
The brand is also heavily involved in Rugby through sponsorship since the start of the Heineken Cup and an involvement with the Rugby World Cup since the same start point of 1995.
Heineken’s investment in the Heineken Cup is estimated to be worth around €10 million a year, comparing favourably to the €40 million per annum investment in the Champions’ League and the €45 million believed to have been spent on last year’s James Bond movie Skyfall.
The Rugby World Cup deal has already been extended to cover 2015 though the Heineken Cup deal expires at the end of the current season.
While hopes are high for that to be renewed again, there has been doubt through the confusion over European Club Rugby caused by English clubs signing up to a rival broadcast deal with BT.  European Cup Rugby’s deal is with Sky and discussions are ongoing on how this can be resolved.
One of the key metrics that Heineken uses for its sponsorship evaluation is brand awareness in each of its global markets.  There is a danger that the high level of market share and awareness in Ireland and Europe may mitigate against future big deals with there being greater scope in emerging markets like Africa.
Key executives formerly based in Cork have since moved on to Nigeria.
There is also a fear that legislation in Europe curtailing alcohol sponsorship in sport may have a negative impact on companies like Heineken.  The French ban already in operation means the Heineken Cup is referred to as the H-Cup in Toulouse, Paris and Clermont and you can rest assured that the company will have data showing the impact this has had on sales.
On the bright side, increasing sales mean that first world investment in marketing and sponsorship will continue and Heineken’s commitment to Irish sport was emphasised in 2012 when the brand confirmed an extension of its support for the Irish Open golf tournament.
The importance of sport remains very strong as well with online monitoring figures from last year showing that despite the lesser spend the Heineken Cup had generated equal online social media coverage than the Bond tie-in.
We have to hope then that the cloud over the future of the tournament will leave the principal sponsor a little shaken but not so mush as to stir an exit.
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