Regional Review
Central and Eastern Europe
duties. Heineken Slovensko's sales declined
from 2.2 million hectolitres to 2.1 million
hectolitres, but its market share showed
tittle change.
The introduction of a number of unpopular
economic measures in the course of the
year and a substantial rise in excise duties
on alcoholic beverages and fuel in August
2003 eroded consumer purchasing power,
which depressed the Slovakian beer mar
ket. The rise in fuel excise duty also made
transporting beer more expensive.
One of the four breweries, in Martiner,
was closed in November 2003 in order
to improve the cost structure by allowing
the other breweries to operate at opti
mum capacity.
Sales of Zlaty Bazant, the leading
Slovakian beer brand, were held back by
the decline in purchasing power and
Amstel sales were also down. In these
market conditions, however, the Corgon
brand performed well and took the lead
as the country's best-selling beer. The low-
priced Gemer brand also achieved higher
volume.
CAKAMI CKOIICKO
Because low-priced beers still account for
a large share of the Slovakian beer market,
it should be possible over the longer term
to improve the sales mix as purchasing
power rises.
With planned capacity of 160,000 tonnes
in 2004, Heineken Slovensko will be one
of the largest malt producers in Europe.
Czech Republic
Strong regional position
Starobrno A.S., which was included in the
consolidation with effect from 1 October
2003, reported total sales of 172,000 hecto
litres, representing growth of 4% or double
that of the total Czech beer market.
With a per capita beer consumption of
160 litres, the Czechs are the most enthu
siastic beer drinkers in the world. Despite
the presence of several international
brewers, small regional brewers still hold
over 20% of the market.
Starobrno A.S., which owns two brew
eries in Brno and Znojmo, secured fifth
place in the Czech market in 2003.
The Starobrno brand, which is positioned
in the mainstream segment, accounts
for over 70% of its sales. Starobrno's sales
and distribution facilities will significantly
enhance the Heineken brand's growth
potential.
Macedonia
Higher sales and a better result
While beer consumption in Macedonia rose
4 sales by our Pivara Skopje brewery
remained stable at 0.5 million hectolitres.
Its result improved despite the deteriorating
economic conditions and growing competi
tion from low-priced beers. Pivara Skopje's
market share decreased slightly.
Sales of Skopsko, the country's leading
beer brand, were down 7%, but sales
of Amstel, by far the largest international
brand in Macedonia, were 22% higher.
The Heineken brand also performed well.
April 2003 saw the successful launch of
Gorsko Lisec, a new beer brand in the low-
priced segment, which has proved very
popular in rural areas where purchasing
power is well below the average.
The extension to the brewery, which
also incorporates facilities for local pro
duction of Amstel, was completed in 2003.
Croatia
Improved position in a slowly
rising market
Thanks to the good summer, the Croatian
beer market recorded significant growth.
The Karlovacka Pivovara brewery, in which
we acquired 094.4% stake in 2003 and
which was included in the consolidation as
from 1 April 2003, posted saies of 775,000
hectolitres. The result was positive and in
line with expectations.
Croatia started investing heavily in its
tourism infrastructure some time ago,
and the rising visitor numbers have
benefited the local beer market in particu
lar. Although growth in the beer market
was held back by higher excise duties, the
Karlovacka Pivovara brewery's sales were
up and its market share increased, mainly
due to growth in the sales of Karlovacka,
the local mainstream beer, and the
Heineken brand. Karlovacka Pivovara is
the second largest brewery in Croatia
and has a substantial export business to
Bosnia.
As well as local mainstream beer Karlo
vacka, the brand portfolio includes
Heineken brand beer and speciality beers
Murphy's and Desperados. Good progress
was achieved in improving operational
efficiency.
With the development of tourism, the
Croatian beer market will offer good
growth prospects, especially in the
premium and speciality beer segments.
report of the executive board
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