Netherlands Regional Review Western Europe Group volume in Europe 2003 in millions of hectolitres Beer consumption in Europe 2002 per capita in litres Group volume Europe in millions of hectolitres 66 60 54 48 42 36 30 2-1 18 12 Ol O H CM CO CT1 O O O O O) O O O O H CM CM (NI CM which has significantly strengthened our market position and has helped to bring our operations in Central and Eastern Europe together in a more cohesive structure. Operations Eleineken, by far the largest brewer in Europe, is also Western Europe's pre-emi nent beer producer. Eleineken is market Spain 10.8 Poland 9.4 Germany 8.0 France 7.4 Italy 6.0 Netherlands 6.0 Greece 3.4 Russia 3.3 Slovakia 2.1 Bulgaria 1.3 Ireland 1.1 Austria 1.1 Croatia 0.8 Elungary 0.8 Switzerland 0.8 Romania 0.7 Macedonia 0.5 Czech Republic 0.2 leader in the Netherlands, Spain, Italy and Greece, is in second place in France, Ireland and Switzerland and has a modest position in the German market. In several other Western European countries, the Eleineken brand (and in some cases Amstel) is either brewed under licence or imported. The West European beer market is one of the most profitable in the world, but offers little scope for volume growth, due to the ageing of the population. Growing consumer preference for premium and speciality beers is, however, creating ample opportunities for Eleineken to further improve its performance. Eleineken has strong brands in both segments, which yield relatively high margins, and has brand portfolios which cover all segments of the market, except the unattractive low-priced segment. Eleineken also adds value in Western Europe by working constantly to cut costs. 77 70 123 35 28 81 42 49 93 51 146 112 78 78 59 52 31 160 Lower sales in a gradually contracting market Despite a good summer, demographic factors and a weak economy again caused the Dutch beer market to contract slightly. The share of lager beers in the total beer market held steady at around g2%. Heineken Brouwerijen's sales decreased from 6.3 million hectolitres to 6.0 million hectolitres and its market share declined a little, but cost savings generated an improved result. The result benefited from the price in creases applied to all brands in February 2003, the better sales mix and lower staffing levels. The reorganisation also yielded improvements in the cost structure. A supermarket price war, which broke out in the last quarter of the year, resulted in the prices of all premium report of the executive board 27

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2003 | | pagina 33