7.7 8 Germany Acquisitions strengthen position in German beer market Heineken N.V. Annual Report 2004 Report of the Executive Board Regional Review Western Europe Marketing and sponsoring Athenian Brewery, under the Heineken brand name, was Grand Sponsor of the Athens organising committee of the Olympic Games. The sponsorship was supported by a three-year marketing campaign that promoted the games as a great celebration, with Heineken as its unchallenged leading beer. The Games gave Heineken and Athenian Brewery an opportunity to demonstrate com mon values of community spirit, quality, creativity and teamwork. In addition, the campaign boosted significantly brand recognition and appreciation. To commemorate the Games, Athenian Brewery introduced a number of innovative, limited edition gifts and beer packaging collector's items including a special Heineken Identity Can and a new variant of the 1.5 litre Magnum Collectors Bottle. We also turned heads by introducing the Paco bottle - striking green aluminium - which re-inforced the brand's premium positioning. Heineken beer was sold to Olympic Games spectators and visitors in recyclable 0.33 litre PET plastic bottles with the Games logo. For the first time in Greece, we also used the Major Tom backpack coolers for PET bottles to appeal to spectators on the move. Amongst various consumer promotions, 'Friends of Heineken' who bought their favourite beer in July and August 2004 were offered the chance to acquire unique commemorative gifts and to win tickets to the Games themselves. The three year Olympic sponsorship campaign 'Marathon' won Heineken the silver prize in the 2004 Effie Awards. In addition, Heineken's Olympic sponsorship television commercial 'bottle top' was awarded the Ermis Grand Prix for Best Advertising Spot of the Year - one of the most important nominations in the Greek advertising and communication industry. Although the year was dominated by the Olympic Games, continued marketing investment behind the Amstel brand enabled it to maintain its market leadership in both the on- and off-trade. Total beer sales million hectolitres Market share percent Market position position The German beer market declined around 2%, reflecting poor weather and weak consumer spending. Brau Holding International's (BHI) total beer sales volume declined by 5% to 7.7 million hectolitres. Despite this, we were able to increase our operating results steady, thanks to strict cost control and careful pricing. Through Brau Holding International, our joint-venture company with Schörghuber Group, we continued to focus on building for the future with a series of important acquisitions that strengthen our position in the south of the country. Fürstlich Fiirstenbergische Brauerei and Hoepfner Brauerei were acquired in the last quarter of 2004. The acquisitions will raise total sales volume in Germany by 870,000 hectolitres. The new companies will be consolidated with effect from January 2005. The Fiirstenberg brand is a leading beer in the south German region and is also exported to several other European countries. Hoepfner is a well-known beer brand in south-west Germany and is also exported to France. Both brands are a valuable addition to BHl's portfolio of German premium brands. In January 2005 Heineken announced that Kulmbacher Brauerei AG, a subsidiary of Brau Holding International, has made a binding offer to acquire 90.7% of the shares of Würzburger Hofbrau AG. Brands Heineken brand volumes and market share in Germany remained stable, thanks to contracts with new on-trade outlets popular with young adults. Imported brands still represent less than 1% of the total German beer market. The Heineken brand, present in the German market since 1993, is gradually achieving a higher profile within its premium position.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2004 | | pagina 51