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