12. Chief Executive's statement
In this respect, the creation of our new streamlined
management structure was just the first step.
You will read more about our new top-management
team later in the report.
The re-structured Executive Board and the new
Executive Committee structure require, but also
facilitate, greater empowerment and delegation.
Ensuring that all of our people understand and
take their personal responsibilities will be one
of our key themes as we communicate with our
people throughout 2006 and beyond. It is also
one of the principles of our new performance
management system.
Global consolidation and investing to meet the
challenges with which we are faced require us
to make choices. This is why our fourth priority
is to focus on those markets where we believe we
can win. Over time this will have an impact, both in
terms of investment in our business and acquisition.
During the year, this priority has been taking shape.
We have clearly signalled our intent in Russia where
we acquired six breweries, bringing the number of
our production bases to ten. Russia is now our single
biggest market by volume, overtaking the Spanish
beer market, and we are in a strong number 3
position. Russia remains a reliable growth platform
and is one of the most promising beer markets in
the world.
You will also have seen us choosing to invest in
the US beer market. This is a critical market for
us, and restoring strong growth is high on our
agenda. That's why we also decided to invest
a substantial, additional amount to support the
launch and roll-out of Heineken Premium Light® -
the first true line extension in the history of the
Heineken brand. The nation-wide launch of
Heineken Premium Light, coupled with investment
in innovation and packaging and our partnership
with FEMSA are important elements in
our commitment to re-establishing growth.
Looking internationally, we will focus on improving
our performance. With our acquisitions we will
focus on growth markets such as Asia and Russia.
But we will not acquire businesses at any price.
That never has been, nor will be, the way Heineken
does business. 2006 will again be rich in challenges
and opportunities, and we are fully committed
to face the first and exploit the second in order to
improve further our profitability, and to accelerate
the growth of our leading brands.
New top-management structure
Following years of significant growth, in 2005
Heineken created a new top-management
structure that will drive and support our
next phase of growth as a global organisation
and that will facilitate faster decision making
and implementation.
Five operating regions
To better align its operations and strategy,
Heineken also announced the creation of
five operating regions: Western Europe,
Central and Eastern Europe, the Americas,
Africa and the Middle East and Asia Pacific.
Each region is headed by a Regional
President.
Group Director roles
Heineken has strengthened its functional
capabilities through the creation of new
'Group Director' roles with consolidated
and clearly defined areas of responsibility.
Heineken N.V. - Annual Report 2005
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