32 Heineken N.V. Annual Report 2004 Report of the Executive Board Operational Review
Marketing and sponsoring
We continue to focus on building Amstel's brand value, on extending its product range and on extend
ing its global reach. In 2004, we introduced Amstel to a number of markets and optimised our portfolio
of line extensions to appeal to evolving consumer preferences. Embracing the trend towards lower
calorie beers, we developed the new Amstel Lite' and introduced it in the Netherlands. In France
we introduced an alcohol-free variant - Amstel Free* - in the on-trade. In Spain we strengthened the
positioning of Amstel beer by changing the name to Amstel' from Amstel Aguila'.
In line with our portfolio approach, we are developing a revised strategy for Amstel that will
provide a clear, distinctive and sustainable role for the brand within our overall portfolio.
Aligned with this will be the development of a more efficient system for tracking Amstel's perform
ance world-wide in a systematic way. In due course we plan to develop an Amstel Brand Dashboard'
similar to the system already developed for Heineken.
Amstel once again sponsored a number of high-profile sports events. The year 2004 marked the
10th anniversary of Amstel's sponsorship of the UEFA Champions League. Other high-profile sponsor
ships include the PGA of America golf tour and the Amstel Gold cycling race in the Netherlands.
These sponsorships helped to boost consumer awareness and purchasing preference among millions
of sports fans around the world.
Innovation, Research Development
To a large degree, the ability of Heineken to sustain growth depends on our ability to innovate across
products, packaging and drinking occasions. It is our understanding of the consumer, which shapes
our innovation ideas and it is world-class Research Development (R&D) which enables those ideas
to be realised.
Much of our R&D activity is carried out locally in our operating companies and coordinated centrally.
The programme covers the entire supply chain, from the evaluation of new and improved strains of
barley and hops to the development of new products and packaging.
An important focus of our R&D efforts is on developing and refining new draught beer systems,
both for the on- and off-trade. In February 2004 we launched BeerTender® in the Netherlands,
a returnable 4-litre keg and tap system that allows consumers to enjoy quality draught beer at home.
Based on its successful launch, we now plan to introduce BeerTender® in a number of other countries.
We also continue to work on improvements to the features and functionality of David, our successful
draught beer system for small on-trade outlets, launched in 2002.
Packaging innovations in 2004 included the further roll-out of the Heineken 'Identity' can. Across
markets, in which the can has been launched, results have confirmed success in terms of positive
consumer perception, premium positioning and volume growth. Through the year, we also created
new designs for secondary packaging for Heineken and Amstel.
