Spain
Italy
Regional Review
Europe
Improvement in second half of 2002
Although the Spanisch beer market grew a little last year,
on-trade sales were down. Heineken Espaha reported
sales of 10.4 million hi in 2002, compared with 10.0 million
hi in 2001. The result was also down, but market share
improved in the second half of the year.
There was some growth in the Spanish beer market des
pite poor weather, reduced tourist numbers and higher
consumer prices related to the introduction of the euro.
There was also an increase in excise duty with effect from
1 January 2002, which led to stockpiling at the end of 2001.
Heineken Espaha lost some market share, due to its
relatively strong position in the on-trade sales channel,
where a reduction in demand was concentrated, and the
enforced sale of two breweries and a number of regional
brands in the course of 2001.
Sales of the Heineken brand were higher and Cruz-
campo volume held firm, while sales of the Amstel Aguila
mainstream brand and low-priced beers declined.
Heineken Espaha runs an extensive support programme
for on-trade establishments, offering total concepts for
positioning and design ofthemed outlets. By the end
of 2002, the number of themed outlets had risen to 375.
Positive publicity for Heineken Espana's brands was gener
ated through sponsorship of various events.
Cruzcampo Future, a one-litre PET bottle, was launched
last year. Cruzcampo Big, a wide-necked bottle, and
Amstel 1870, which had both been test-marketed in 2001,
were introduced nationally. Spanish consumers are
increasingly acquiring a taste for speciality beers, and
Desperados in particular reported growing sales. Two new
speciality beers were launched: Legado de Yuste, a charac
teristically Spanish abbey beer, and Cruzcampo Selección
Especial. Higher sales were also reported for Guinness
stout, which is brewed under licence, and our own
Murphy's Irish Red and Buckler alcohol-free beer.
Following the enforced sale of two breweries in 2001,
Heineken Espaha embarked on a cost-cutting programme,
which will mean reducing the workforce by around 700
by 2005.
To strengthen its logistics function, Heineken Espaha
has a separate distribution organisation which, in addition
to the distribution of our beer brands via allied distrib
utors, also supplies wines, spirits and soft drinks.
Sales of imported Heineken beer on the Canary Islands
increased slightly, despite a substantial rise in import
duties.
Stronger result in a weaker beer market
Beer consumption in Italy declined a little compared with
2001, with weaker sales in the on-trade sector in particu
lar. Heineken Italia's beer sales remained flat at 5.7 million
hi, and its market share increased slightly. The result
improved, due mainly to a better sales mix and greater
internal efficiency.
Heineken, Birra Moretti and Ichnusa, Heineken Italia's
principal brands, achieved substantial growth, but sales of
Dreherand a number of low-priced beers fell short of the
previous year's level. Speciality beers also sold in greater
volume. Ichnusa, which is available only in Sardinia,
confirmed its position as the leading brand on the island.
The launch of the new David dispenser was a great success
and over 2,500 systems have now been installed in Italy.
The Heineken brand received additional support
through Heineken Italia's sponsorship of a number of
music events, the most prominent being the Heineken
Jammin' Festival and the Umbria Jazz Festival. Moretti
continued its successful sponsorship of the Trofeo Birra
Moretti tournament, which is contested by the top Italian
soccer teams.
The usage of and facilities provided by the Hiweb inter
net application, through which on-trade customers,
dispensing equipment servicing contractors and Heineken
Italia's sales organisation can communicate directly,
continued to grow.
Partesa, Heineken Italia's distribution organisation, per
formed well and its margins improved. Partesa acquired
a numberof additional beverage wholesalers to augment
its distribution network.
Following the decision to increase capacity at the
Massafra brewery, work on the expansion project is in
progress and is scheduled for completion in 2004.
The process of replacing the Heineken, Birra Moretti
and Ichnusa bottles and crates is practically complete.
HEINEKEN N.V. ANNUAL REPORT 2002
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