E-Malt.com News article: USA: Heineken selects Savannah for new distribution center

Heineken USA has announced the selection of Savannah as the site of its newest distribution center, Savannah Morning News reported October 31.

Heineken's newest "demand point" distribution center will be fully operational in early 2008 and will initially handle 4,000 containers annually moving from breweries in Holland to distributors in Georgia, the Carolinas, Tennessee, Kentucky and Alabama.

In total, the facility expects to handle 7 million cases of Heineken and Amstel brand beverages yearly. Potential deliveries further into the Mid-South and Southwest will be evaluated as part of Heineken USA's continuous supply chain analysis.

Georgia Ports Authority Executive Director Doug Marchand said the selection of Savannah indicates Heineken's confidence in GPA's ability to handle its cargo.

"This announcement is further evidence of the strategic value of Savannah as the key Southeast distribution location in the South Atlantic," Marchand said.

With the opening of the demand point center in Savannah, Heineken USA will shift operations from two of its current centers in Charleston, S.C., and Norfolk, Va. The company will now rely on six demand point facilities to support its distributor network across the nation.

Heineken USA has chosen Satellite Logistics Group to manage its product distribution operations at the new center. A final location for the center has not been determined.

"The quality Heineken and Amstel Light products consumers enjoy each day are brewed more than 3,000 miles away. Importing and distributing them to a distinctive and widespread market like the United States presents a unique challenge," said Dan Sullivan, chief operating and chief financial officer, Heineken USA.

"Over the past 10 years, we have worked to fine-tune and differentiate our supply chain to enable our distributors to maximize their operations to best serve our customers and consumers. The recent review of our systems will help lay the groundwork for optimal growth and efficiency for years to come."

Heineken USA joins a growing list of importers migrating to Savannah as a port of choice for European cargo, Marchand said. Seven direct container services call on the port of Savannah to and from Northern Europe, a 75-percent increase in new services to this market since 2005.


02 November, 2007