How Heineken uses sports to connect with Africa’s youth
Heineken, the world’s second-largest brewer, is making significant strides in Africa by harnessing the power of sports and entertainment to engage with the continent’s youth. With Africa’s economies bouncing back from the pandemic-induced slowdown, Heineken sees tremendous growth potential in the region.
Champions League Trophy Tour
Almost 20 years since it began sponsoring the popular European soccer tournament, the Champions League, Heineken executed the most elaborate Champions League trophy tour on the continent in 2021. The tour visited the Democratic Republic of Congo, Mozambique, Ethiopia, and Nigeria, capturing the excitement and passion of African football fans. Fans from Rwanda and Congo Brazzaville also had the opportunity to experience the tour in Nigeria and DRC, respectively. The presence of football legends like Clarence Seedorf added to the tour’s allure, which coincided with the quarter-finals stage of the 2021/2022 Champions League season.
The African continent is known for its passion for football, with an estimated 400 million Africans tuning in to watch European football matches weekly. The growth and success of African football professionals like Sadio Mane, Mo Salah, and Riyad Mahrez have further fueled the interest and passion for European football. This tour allowed fans to get up close to the coveted UCL trophy and bask in the excitement of football matches featuring top teams like Chelsea, Real Madrid, Manchester City, Liverpool, and Bayern Munich.
The Power of Pop Culture and Sports
According to experts, the Dutch Brewery giant understands that sports and entertainment have a profound impact on African consumers. So by aligning its brand with their interests, the company is able to build cultural significance and establish a connection that goes beyond its core business operations.
Football, in particular, has been a successful strategy for Heineken. The company has been a long-standing sponsor of the UEFA Champions League, the most prestigious European soccer tournament. This partnership has allowed Heineken to tap into the immense passion for football across Africa. The extensive Champions League trophy tour in 2021 was a testament to Heineken’s commitment to engaging with African football fans and leveraging their enthusiasm for the sport.
Tunji Adegbite, founder of Naspire, a company that provides business research for brands in Africa, emphasizes the importance of brands aligning with the interests of young Africans. “They want to drink beer and have fun, but they’re also passionate about sports, music, fashion, as well as film and arts. Only the brands who demonstrate they care about these things will win today and in the future,” he says. Heineken’s investment in pop culture, music, and film further strengthens its connection with the African youth.
“When you look at the history of brands like Heineken in Africa, the reason they connect so well locally is because they understand and speak the language. They know what the people want and they meet that need; in the process, they build cultural significance and have an impact beyond their actual business,” explains Ganiyu Oluwu, a Lagos-based brand analyst.
Africa’s Untapped Potential
While Nigeria and other African countries may have lower disposable incomes compared to other regions, they represent a sizable population that is growing fast, making them a significant opportunity for beer companies like Heineken in the long term. The Nigerian beer market, in particular, remains attractive due to its high growth potential and improving macroeconomic environment.
Sales of Heineken products have rebounded strongly across the continent, surpassing expectations and outpacing pre-pandemic levels. “Overall, 2021 saw total volume exceeding 2019 levels driven by the performance in many markets across the region, especially Nigeria and the Democratic Republic of Congo,” says Stefan Pirmez, the president of Heineken Africa, Middle East and Eastern Europe. The company’s international and local premium brands have witnessed strong performances in countries such as Nigeria, South Africa, Russia, Ivory Coast, and Rwanda.
Investing in Africa’s Future
Recognizing the immense growth potential in Africa, Heineken has increased its investment in the continent. In 2021, the company invested over $250 million in Africa, expanding its production facilities and infrastructure. Notable investments include a $100 million brewery in Mozambique, an $11 million brewery in Congo, and a $119.5 million factory near Addis Ababa in Ethiopia. Additionally, Heineken commissioned a solar photovoltaic plant in Nigeria, reducing the brewery’s carbonfootprint by 10,000 tonnes annually. These investments demonstrate Heineken’s commitment to sustainable practices and aligning with Africa’s growing demand for environmentally friendly solutions.
Africa’s young and vibrant population presents a significant growth opportunity for beer companies. With an average age below 25 and relatively low per capita beer consumption, there is ample room for expansion. Heineken recognizes this potential and is positioning itself as a leading player in the African market.
Looking Ahead
By leveraging the power of sports and entertainment, Heineken is forging lasting connections with Africa’s youth and shaping the future of its brand presence on the continent.
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