Heineken

When Gerard Heineken bought a traditional brewery dating back to 1592, he had no idea that it would become the second largest brewery in the world. Established by brewers' widow Weijintgen Elberts, the Haystack brewery in the heart of Amsterdam was purchased by 22 year old Gerard Adriaan Heineken in 1864. Though the largest brewery in the region, Heineken realised it needed sweeping changes, and demanded compleat control. In 1869, Mr Heineken decides to switch from traditional top fermentation to the Bavarian method of bottom fermentation, a totally different technique that produces a clearer, purer beer, which keeps longer. The new beer is known for its quality and is called 'Gentleman's Beer' as opposed to 'Workman's Ale'.The 1870s usher in a decade of fierce competition, with several new breweries competing for the high-quality beer market. Heineken must again start making cheaper workman's beers and gets into the business of cafes, hotels, and beer houses to secure purchasers. Brewers take on the role of banks, providing credit and extravagant extra benefits to win over clients.Then, due to the Franco-Prussian war, imports of Bavarian beer dry up, causing Heineken's sales to skyrocket.In 1873, Heineken's Bierbrouwerij Maatschappij N.V. (Heineken Breweries or HBM) is incorporated. Gerard Heineken is appointed President and the name 'Haystack' is replaced by Heineken. The brewery stops producing 'workman's beer'.In 1875, Heineken beer wins a gold medal at the International Exposition in Paris and regular shipments to the French capital begin. Among others, the Folies Bergere signs up to receive an annual 2000 hectolitres.Through the 1880s, Heineken continues to expand, struggling between concessions to the market and its belief in the high quality, and price, standards that put it on the map in the first place. Continuing with Gerard Heineken's philosophy that, "A good product is recommended by its use alone," the company refuses to deploy advertising seriously, seeing it as useless and rather low-class. Technical breakthroughs ultimately provide a critical edge. By 1880, the company is now the biggest exporter to France, and in particular Paris, which is fast becoming 'the capital of the nineteenth-century'. Cooling systems are installed in the brewery in Amsterdam, terminating dependence on natural ice in 1881. In 1883, cooling systems are installed in the brewery in Rotterdam.By 1886, Doctor Elion, a student of Louis Pasteur, develops the A-yeast strain, still used today to give Heineken its characteristic flavour, and in 1889, the innovations begin to pay off: the brewery is awarded the gold medal of honour at the World Exhibition in Paris, where Heineken beer is supplied to the Eiffel tower restaurant. This award crowns the quality-focused policies of Gerard Heineken and director Wilhelm Feltmann.