Greece
Germany
Switzerland
Ireland
Regional Review
Europe
Improved result in a gradually rising market
The beer market picked up a little, despite wet weather
and a reduction in tourist numbers. Athenian Brewery's
sales increased slightly to 3.7 million hi and its result
improved.
Athenian Brewery achieved sustained growth in Heineken
beer sales, helped by the marketing campaigns launched
the previous year based on our sponsorship of the Olympic
Games in Greece in 2004. The campaign used several tele
vision commercials as well as newspaper, magazine and
billboard advertising. Involvement in the Olympic Games
will be a major boost for the Heineken brand. Amstel sales
remained at the previous year's level. Sales of Alfa, an
authentic Greek beer, developed in line with the market.
Our brewery is working to make beer drinking less season
al by stepping up its advertising effort in the low season.
Sales ofourloli mineral water were down. Exports of
Amstel, Marathon, Athenian and Alfa beers to the neigh
bouring countries were higher. Imported Amstel is the
top-selling beer in Albania.
Sales and results in line with forecast
BrauHolding International, our joint venture with Schörg-
huber Corporate Group, started trading on 1 January
2002. The German beer market continued to contract
last year, with the relatively weak economic situation
adversely affecting sales especially in the on-trade sector.
BrauHolding International's sales were higher and the
first year's result was in line with expectations. Exports
of Heineken beer to Germany continued to grow.
At the beginning of 2002, the joint venture owned 62% of
the Kulmbacher brewery and 50% of Paulaner Group. In
June last year, the purchase was announced of 45% of the
shares in Karlsberg International Brand GmbH, which sells
3.9 million hi of beer and 400,000 hi of other drinks.
Karlsberg, whose principal brand is Karlsberg Urpils, has a
strong position in the Saarland and Rheinland-Pfalz regions.
The transaction has been approved by the authorities con
cerned. The participating interest in Karlsberg has been
part of BrauHolding International since 1 January 2003.
Paulaner reported strong growth in sales of its speciality
Weissbier, in both its home market of Bavaria and the rest
of Germany, Italy and Spain. Paulaner Weissbier is now
available in elegant long-necked bottles. Auerbrau devel
oped well, but sales ofThurn Taxis and Kulmbacher were
down. Mönchshof volume was higher, as were sales of
Sternquell and BrauStolz, the former East German brands.
Sales of soft drinks also increased.
BrauHolding International made cost-savings in several
areas, helped by shared raw material purchasing.
Stable sales in a softer beer market
The Swiss beer market continued to contract slightly.
The economy weakened and tourism was down.
Competition, especially from German and French beers,
intensified. Heineken Switzerland held sales stable at
760,000 hi but returned a slightly lower result.
Heineken Switzerland reported increased sales of
Heineken beer. The local Calanda and Haldengut brands
defended their market share but volume was lower. In the
region where Calanda is strongly positioned, tourism was
also down.
Heineken Switzerland installed a large number of the
new David dispensers in the on-trade sector. The new
brew-house at the Chur brewery came on stream.
Concentrating production at Chur has reduced costs.
Higher sales and an improved result
The Irish beer market weakened slightly, but lager contin
ued to grow at the expense of stouts and ales, boosting
Heineken Ireland's sales from 1.1 million hi to 1.2 million hi
and increasing its market share. Higher beer sales and
higher selling prices combined to produce an improved
result.
Sales increased in both the on-trade and take-home
channels. Heineken Ireland was able to keep sales of the
Heineken brand on target, supported by sponsorship of
the Heineken European Rugby Cup and the Thirst and
Green Energy music festivals. Sales of Murphy's Irish Stout
were down, inline with the contracting stout market. The
Irish Open golf tournament was sponsored by Murphy's
Irish Stout for the last time in 2002. Sales of Coors Light
brewed under licence recorded substantial growth.
This American brand is now also available on draught.
REPORT OF THE EXECUTIVE BOARD
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