Heineken Unveils Organizational Changes in Bid to Cut Costs

By Ed Ballard

Heineken N.V. Tuesday said it will consolidate some geographical divisions and combine roles at its head office in a reorganization the brewer said would simplify its business structure and cut costs.

The company said the changes will "underpin delivery" of its target of improving its operating margin by around 40 basis points.

"The changes announced today will make us a more agile organization," said Jean-Francois van Boxmeer, Heineken's chief executive officer and chairman. "Our management structure will be flatter, our operating companies more empowered and our cost of doing business lower."

The Western Europe and Central and Eastern Europe divisions will be combined to form a single Europe region, focused on the European Union. The existing Africa Middle East region will be combined with Russia and Belarus to form a single Africa Middle East and Eastern Europe divisions.

The Netherlands-based company also announced changes to staffing at its head office to make the executive team "leaner". The roles of chief marketing officer and chief sales officer will be combined in the new role of chief commercial officer. Jan Derck van Karnebeek, Heineken's president of Central and Eastern Europe and chief sales officer, will take the job.

The role of chief strategy officer will be phased out. Current incumbent, Chris Barrow, has decided to leave Heineken in July, the company said.

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