decision not to participate in the low-priced segment
and the retailer price war in the off-trade.
The announced construction of the new brewery
in Seville with a capacity of 4.5 million hectolitres,
is proceeding according to plan. The new bottling
hall will come on-stream in 2007 and the brewery
will be fully operational in early 2008, leading to
substantial increases in efficiency. During the year
we took a €69-million one-off charge related
to the closure of the old brewery and associated
personnel reduction.
France
Total beer volume 6.8 million hectolitres
Market share 31 percent
Market position 2nd
The French market is challenging for all brewers,
as a result of weak consumer demand and pressure
in the off-trade. Heineken France, however, resisted
the trend towards huge discounting and limited the
impact on its revenues. Beer volumes were down
3.7 percent in 2005, but the Heineken brand posted
an outstanding 4.8 percent growth, gaining market
share in its segment and improving the sales mix.
EBIT beia improved as a result of a better sales
mix and cost reductions in France. Specifically,
we reduced personnel in France.
During the year, we launched a number of
innovations, including several new, flavoured beers
such as Desperados Mas, Isla Verde and Panach'
Vanille. We launched the Heineken DraughtKeg,
the portable five litre draught beer system, in April
and it was received well by consumers.
Italy
Total beer volume 5.7 million hectolitres
Market share 33 percent
Market position 1st
Volumes in the Italian market were slightly down
due to the increases in beer excise duty. As a result
of the economic stagnation, consumption decreased
in the on-trade, while low price German beers
gained ground.
Heineken Italia continued to invest in its key brands
and did not participate in the low prices segment,
causing a slight reduction of its market share.
Heineken brand volume remained stable. Birra
Moretti, the key mainstream brand, grew, reaching
Culture Bière
A vibrant gastronomic and retail experience
which allows consumers to celebrate all
that is good about beer.
Located on the Champs Elysées in Paris,
the experience has been designed in such
a way that customers can discover for
themselves any aspect relating to beer.
Seasonal
In addition to the three pilsner brands,
Heineken, Amstel and Brand, two
seasonal brands were introduced in
the Netherlands to meet the demand
of the Dutch consumer: Amstel Bock®
and Wieckse Witte®.
Heineken N.V. - Annual Report 2005
