34 Market share
Italy
Heineken Italy outperforms the market with solid growth in market share
44 Heineken N.V. Annual Report 2004 Report of the Executive Board Regional Review Western Europe
segment and lower consumption, though, reduced the sales volume of "33" Export.
The increased penetration of ready-to-drink (RTD) brands both within the on- and off-trade sectors
hit beer consumption and hampered the development of Desperados and Kriska.
We continued our initiative 'Bière Coté Repas' aimed at persuading French consumers to associate
beer drinking with fine dining, with the introduction of a range of up-market beers in 75-cl bottles
in select restaurants.
Wholesale
France Boissons, Heineken France's distribution organisation has started an important cost-efficiency
programme based on achieving regional synergies and re-engineering logistics. Heineken France
will continue to pursue this programme in 2005. In addition, we will have to divest three of our distrib
utors in response to French anti-trust regulation upon the request of the French Ministry of Finance.
Furthermore, the European Commission concluded that certain discussions between Heineken and
Kronenbourg in early 1996 regarding a discontinuation of the acquisition of wholesalers constituted
an infringement of EU competition law. As a result, the Commission imposed a fine on Heineken of
€1 million.
Heineken Italy's overall market share
remained more or less stable at 34% in 2004
and expanded its product range in the Italian
beer market that declined 3% overall.
This was largely due to a less favourable summer
than the spectacular weather 0/2003, which
in turn drove down tourist numbers once again.
Heineken Italy's total sales volume declined to 5.9 million hectolitres from 6.0 million in 2003.
Heineken Italy, nevertheless, achieved its goal of raising the market share of Heineken,
Birra Moretti and Ichnusa.
Brands
In addition to the strong commercial focus, the development of the Heineken brand was aided by
advertising campaigns such as 'Fresh is Better'. This has strengthened the Heineken brand's link with
trend-setting consumers. Heineken Italy also launched the country's first Heineken Don't Drink Drive
campaign. The Heineken brand continued to take a leading role in music sponsorship through festivals
such as Heineken Jammin', Umbria Jazz and Thirst.
Birra Moretti's promotional link with football was strengthened further during the year. Among the
highlights were the Trofeo Birra Moretti and the sponsorship of Inter Milan, Juventus and the
Champions League. Outside the domestic market, too, Heineken Italia continued to build the inter
national credentials of Birra Moretti, targeting strategic markets such as the USA and the United
Kingdom.
During the year, we also launched Budweiser, brewed under licence, in both the on- and off-trade,
achieving widespread distribution.
Dreher consolidated its national position and image by expanding on the 'sparkling friendship'
theme in its advertising campaign. Ichnusa, strongly associated with Sardinian culture, was supported
by a new multimedia advertising campaign, aimed at making the brand more contemporary.
5Q Total beer sales
t, million hectolitres
percent
1 Market position
position
