Western Europe
Regional Review
'Innovation is key for our top-line
growth. We have produced a
number of successful examples
of innovation that supported that
growth, including the new and
updated versions of BeerTender,
DraughtKeg and also Xtreme
Draught. These are important
initiatives to create promising
opportunities and to restore
growth in beer consumption."
Report of the Executive Board
Revenue
€5.4 billion
EBIT
€920.2 million
EBIT (BEIA)
€633.3 million
Consolidated beer volume
32.1 million hectolitres
Heineken group volume
in premium segment
7.1 million hectolitres
Consolidated beer volume
In millions of hectolitres
2002 I
2003 I
2004 I
2005 I
2006 I
31.8
I 32.8
32.2
31.9
32.1
Heineken is Western Europe's leading brewer
and the region continues to make the largest
contribution to Group's profitability, thanks
to our strong market positions and excellent
brand portfolio. Our market share in the region
is 14 per cent.
Revenues were up 2.4 per cent in Western
Europe driven by improvement in price and
sales mix and by a positive contribution from
wholesale activities. Consolidated volumes
were fractionally up to 32.1 million hectolitres,
as good performances in Spain, the UK,
Switzerland and Ireland more than offset
the pressure in the on-trade recorded in
some of the region's other countries.
Trading in Western Europe was positively
influenced by the sustained warm weather. The
effect of the soccer World Cup was negligible.
The Heineken brand volumes in the premium
segment grew by 3.8 per cent with brand growth
higher than market growth in all countries.
The volume of the Heineken brand, including
that of the Dutch market, grew by 1.7 per cent
to 10.4 million hectolitres.
Didier Debrosse,
President Heineken Western Europe
EBIT BEIA grew by 4.8 per cent due to our efforts
in building our brands and our focus on cost
savings. In addition, an exceptional gain was
realised by sale of the land of the existing
brewery in Seville.
Innovation continues to be key in order to attract
and retain beer drinkers in the highly profitable
Western European markets. We increased our
efforts in this area during 2006. For instance,
attractiveness and quality of our beers in the
on-trade was enhanced; the first Xtreme Draught
units rolled off the lines in July; frozen founts were
installed to serve our Heineken Extra Cold in the
Netherlands, France and Switzerland; and in
France the new BeerTender was introduced in
the autumn. Sales of the innovative DraughtKeg
also contributed to volume growth. Innovation
also applied to other brands: Desperados Mas®
Q/r Heineken N.V.
£m\J Annual Report 2006
