2003 2002 Change 2003 in Retrospect duties and improve the brand's growth potential. In Africa, the fastest growth was in Nigeria and South Africa. In Latin America, the Heineken brand strengthened its position in Chile and sales started to grow again in Argentina, after a difficult period in the wake of the country's serious economic crisis. Sales were lower in Brazil, the largest beer market in South America, due to a major price increase. Increased brand value The main driver of Heineken's growth is the added value attributed by consumers to the brand. Their perception of this value is enhanced through relevant and appeal ing advertising, sponsorship, packaging and presentation within the sales channels. Growing preference for Heineken was confirmed by the regular consumer surveys which we conduct in many local markets. New marketing approaches were successful in a number of areas, such as the Beacon programme through which Heineken seeks to connect with the world of the young adult. Our music sponsorship programmes, such as Thirst, were more precisely tailored to the needs of the target group and proved very popular in many countries. The new can and the stylish aluminium bottle, developed specially for exclusive clubs and other venues, which were introduced in 2002, were also well received. In France and Greece, sales of canned Heineken beer rose 10% in the period after the introduc tion of the new packaging. Beer in PET bottles, introduced in the United States and the Netherlands, is only sold at events where the sale of beer in cans and glass bottles is prohibited. For brands other than Heineken, beer in PET bottles is also distributed via the regular sales channels. Availability The availability of the Heineken brand was improved through acquisitions and new distribution partnerships. In Central and Eastern Europe, the Heineken brand benefited from the acquisition of BBAG, particularly in Austria, Hungary and Romania. The first effects of Heineken's stronger presence in these countries became apparent in 2003, and we are looking forward to increasing opportu nities for growth in the coming years. Marketing and communication Thanks to improved cooperation, coor dination and efficiency in the area of marketing, the globally available platforms for sponsorship, special packaging and marketing campaigns for the sales chan nels were used in a growing number of markets. The uniform use of marketing tools also ensures greater consistency in advertising communications and better integration of activities on behalf of international and local brands, so that new initiatives in local markets take effect more quickly. The exchange of best-practice market ing expertise continued to expand in 2003, encouraged by Heineken's many awards. These included prizes for the Green Room Music programme, the Heineken Cup, Geographical distribution of Group volume in thousands of hectolitres Western Europe Central/Eastern Europe The Americas Africa/Middle East Asia/Pacific Group volume1 Affiliated companies Total beer volume2 1 Group volume volume sold by consolidated companies and Heineken beers brewed under licence by third parties. Total beer volume Group volume plus volume produced by affiliated breweries Kaiser and Quilmes. 44,727 42,242 5.9 20,611 15,671 31.5 12,511 8,380 49.3 12,706 10,558 20.3 8,413 7,997 5.2 98,968 84,848 16.6 10,000 24,101 -58.5 108,968 108,949 0.0 REPORT OF THE EXECUTIVE BOARD 17

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2003 | | pagina 23