This column was originally published on RealMoney on Nov. 1 at 10:19 a.m. EST. It's being republished as a bonus for TheStreet.com readers."It takes something new to produce a startling advance in the price of a stock," says William O'Neil in his investing bible, How to Make Money in Stocks. Besides a new, quick-selling product or service, he says "it can also be a change of management that brings new vigor, new ideas or at least a new broom to sweep everything clean." Enter Jean-Francois van Boxmeer, who took over the helm of Heineken ( HINKY) one year ago. In doing so, he not only brought out the broom with a 200 million euro cost-cutting program at the Dutch brewer, but also helped to revitalize the U.S. business with the rollout of Heineken Premium Light and to oversee the successful integration of several Russian acquisitions. As a result, in van Boxmeer, Heineken has one of the key ingredients needed to produce a startling advance. Indeed, the stock has enjoyed a 35% gain in the past year. Even so, I believe there's still more upside. Part of that is the macro wind filling the company's sails, as consumers worldwide trade up in beer. While the overall global beer market is increasing at an uninspiring 2.7% yearly clip, the more profitable international premium segment -- led by the core Heineken brand -- is seeing 6.4% annual growth. The rest of the upside is specific to Heineken.
In moving toward that goal, Heineken recently introduced Budweiser beer to Russia under a licensing agreement with Anheuser-Busch ( BUD). The company might also strike a similar deal with Kirin Brewery ( KNBWY), Japan's largest beer maker.
Another subsidiary, Chilean brewer Compania Cervecerias Unidas ( CU) has given Heineken exposure to the fast-growing Latin American beer market. Specifically, CCU operates in two key markets, Chile and Argentina, where it has seen strong beer-volume growth.