Netherlands France Regional Review Europe Level result in a slightly softer market Demographic factors caused the Dutch beer market to contract slightly. Beer prices rose in response to an 18% increase in excise duty and higher costs. Heineken Brouwerijen's sales declined from 6.5 to 6.3 million hi, but our market share held firm. Despite the lower sales, an improved sales mix helped to keep the result level. The Heineken companies in the Netherlands have started operating a number of shared support services, with the aim of improving quality and reducing costs. There is a clear shift in the beer market from the on-trade to the take-home sales channel, helped by longer super market opening hours and the growing availability of chill ed beer in supermarkets. This is impacting on on-trade sales of draught beer, and competition between breweries for outlets in the on-trade sales channel is intensifying. With gi.8% of the market, lager is the dominant beer. Sales of competing ready-to-drink mixes declined in the second half of 2002, which indicates that these drinks have passed their peak. Sales of Heineken beer held steady. The brand was sup ported by the popular 'Biertje' campaign, new forms of packaging and sponsorship activities. Events sponsored by Heineken included the Fast Forward Dance Parade, Dance Valley and a one-off concert by rock legends Queen to mark the Queen Beatrix's Birthday. The new twelve- pack of one-way green 25-cl bottles was rated by retailers as the best newcomer to their shelves in 2002. Heineken Brouwerijen also introduced a 28-bottle crate for the on-trade sales channel. The David dispensing system, which uses small 20-litre kegs, was launched in early 2002 and was enthusiastically received by the on-trade. Around 500 systems are now in use in the Netherlands. Sales of Amstel were down, reflecting its relatively strong position in the depressed on-trade sales channel. Amstel Bright, which is imported from Curagao, and Desperados posted strong growth. Amstel's 'Three Friends' concept continued to enjoy high consumer ratings. The rapid growth in export sales has made it necessary to expand our production facilities, mainly for the produc tion of Heineken and Amstel Light, in Zoeterwoude and Den Bosch. Work has started on this extension project, which will take our total capacity in the Netherlands to over 16 million hi per year. To reduce costs, production at De Ridder brewery in Maastricht has been transferred to Den Bosch. The plan to close our De Ridder brewery was announced at the end of 2002. Vrumona, our soft-drinks company in the Netherlands, operated in a declining market. Although its market share contracted a little, Vrumona's result was higher, thanks to improvements in the sales mix and cost-savings. Dairy-based drinks are gaining in popularity at the expen se of traditional soft drinks, such as cola, orange and lemon/lime. Demand in general is shifting from carbon ated to still drinks, and Vrumona responded to this trend by launching several new products, including SiSi No Bubbles Orange/Mango, Pepsi Twist and 7-Up Tropical Splash. Vrumona has embarked on a new cost-reduction programme. Improved result in a softer market The slow downward trend in the French beer market was compounded in 2002 by the effect on consumption of the poor weather. Competition intensified. Sogebra's sales were down from 7.8 million hi to 7.5 million hi, in line with the market, but the result improved, reflecting a better sales mix which was largely due to the success of Despera dos, higher selling prices and lower costs. As the premium and speciality beer segments continued to grow, the Heineken brand achieved higher sales and increased its market share, despite the slower beer mar ket in the on-trade sector in particular. The introduction on a limited scale of Heineken in innovative aluminium bottles was a great success and roll-out will continue in 2003. The Heineken brand was supported by new print-media and billboard advertising. As well as taking the lead as the best-selling speciality beer in France, Desperados also reported greatly increased exports. Sales of Amstel, which is only sold in the on-trade sales channel, declined in line with the rest of the mainstream beer segment. "33" Export, which is also positioned in the mainstream segment, suffered the effects of competitors' price- cutting promotions and sales were lower. New product launches included "33" Export Demi-Rondelle, a lemon- flavoured beer, and Panach' Peche, a peach-flavoured shandy. The launch of Kriska, a vodka-flavoured beer, exceeded expectations. Sales of Affligem, an abbey beer produced by our Belgian brewery, were higher in both the on-trade and take-home sectors. REPORT OF THE EXECUTIVE BOARD 21

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2002 | | pagina 24