Netherlands Spain Regional Review Europe Rising result in a contracting market The Dutch beer market was rather lacklustre in 2001. Lagers gained market share at the expense of alcohol- free beers and sales of speciality beers remained stable. Our beer sales in the Netherlands declined from 6.7 to 6.5 million hi. There was no growth in the Group's market share in the Netherlands, but the sales mix improved and the result was slightly higher. Sales were adversely affected by the weather and impaired consumer mobility due to the travel restrictions imposed in connection with the outbreak of foot-and- mouth disease. Demographic factors and the growing competition from wine and premixed spirits also exerted pressure on the beer market. Heineken's share of the beer market was negatively affected by the ban on the sale of alcoholic beverages at filling stations, a sales channel in which Heineken was relatively strongly repre sented. The initial results of the new advertising campaign for the Heineken brand were encouraging. Amstel's market share and sales were down slightly. The successful 'Three Friends' campaign was expanded and more sponsored concerts tied into the hit TV programme 'The Friends of Amstel Live' were staged. The launch of Amstel Bright, a pale lager in a clear bottle which is imported from Curagao, exceeded expectations. A new bottling line serving our export markets was installed at the Zoeterwoude brewery in 2001. This new line, which has raised efficiency and expanded capacity, entered service early in 2002. The efficiency and effec tiveness of our production and distribution, marketing and sales and central services functions were maximised by organising them under three separate companies. A new management information system, supporting the operations of Heineken Nederland, Heineken USA and Heineken Export Group, was introduced. Heineken Nederland was pleased to learn of the shelv ing of the plans to introduce a can deposit. Such a system would impose heavy costs on the industry, but would do little to reduce the volume of litter. It would also encourage fraud, because the deposit far exceeds the production cost. Growth in the soft drinks and mineral water market was constrained by the poor summer. Sales of special soft drinks such as iced tea and fruit-based soft drinks continued to advance, bringing pressure to bear on sales of more traditional soft drinks such as cola, orange and lemon/lime. Branded soft drinks increased their share of the total market. The keen competition on the take-home market was exacerbated by the large number of new entrants. Vrumona, our soft drinks company, maintained its mar ket position. The market shares of Pepsi and 7-Up, which are produced under licence, remained stable and Sisi sales continued to grow. Work continued on the develop ment of the Xi brand and Xi Climax was launched suc cessfully in the on-trade sector. With the acquisition of the Crystal Clear brand, Vrumona secured a position in the fruit-flavoured mineral water take-home market. Higher volume despite compulsory sale of regional brands The Spanish beer market enjoyed a sixth consecutive year of growth in 2001. Heineken Espana's beer sales increased from 10.0 to 10.4 million hi and its market share was virtually unchanged, despite the sale of two breweries and a number of regional brands which was a government-imposed condition of the acquisition of Cruzcampo in 2000. Heineken Espaha posted an improved result. Through a public offer, Heineken increased its sharehold ing in Heineken Espaha to 97.2%. The Heineken, Cruzcampo and Aguila-Amstel brands reported strong growth, replacing the volume of the brands which had been sold making it necessary to increase capacity at the remaining breweries. Heineken Espaha successfully launched several new beers and packaging variants, including Amstel 1870, Amstel Oro and Cruzcampo Big, in an innovative wide-necked bottle. The sales mix improved. While the large market in Spain for alcohol- free beer contracted, the Buckler and Kaliber brands, which occupy leading positions on that market, recorded increased sales. The principal brands were strongly supported with marketing campaigns and sponsorship of events such as the FIB-Heineken Music Festival, which drew a European audience. Aguila-Amstel also benefited greatly from its sponsorship of the UEFA Champions League, helped by the success of the Spanish soccer teams. Steady progress was made with the integration of El REPORT OF THE EXECUTIVE BOARD 25

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2001 | | pagina 32