Report of the Executive Board
Regional Review
continued
Brand portfolio
Heineken owns and manages a
strong portfolio. Our international
and local brands include lagers,
specialty beers, light beers
(low-calorie beers) and
alcohol-free beers.
The Netherlands
Consolidated beer volume
Market share
Market position
5.7 million hectolitres
49.8 per cent
1
Our volumes were fractionally down. Amstel
and Brand® beer grew well, whilst volumes
of the Heineken brand slightly decreased.
Revenues remained broadly unchanged. EBIT
(BEIA) was virtually unchanged, as the effect of
a better sales mix was offset by lower results in
the wholesale operations. On the other hand,
the result of the brewing activities grew thanks
to ongoing savings in fixed costs.
The DraughtKeg was a great success, with
5.4 million kegs sold by year end. The installation
of the much needed additional filling capacity in
our Dutch brewery in Zoeterwoude is progressing
according to plan. BeerTender, the other
innovative draught system for home use, is now
available in 11 of our brands. By the end of 2006,
six million BeerTender Kegs had been sold.
In November, new Amstel returnable bottles were
rolled out with the restyled label, featuring the
well-known bulls-eye. Other packaging types will
also be improved accordingly. The upgrade of
the labels will be rolled out internationally.
Our soft drink operation, Vrumona, recorded
a positive volume growth, which resulted in
an increased EBIT.
Spain
Consolidated beer volume
Market share
Market position
11.2 million hectolitres
30.4 per cent
1
Heineken Espana revenues increased by
7.7 per cent thanks to strong volume growth
driven by all three key brands: Heineken, Amstel
and Cruzcampo. Buckler®, our alcohol-free beer,
continues its success and volumes grew by
1.7 per cent in 2006, following on strong
growth posted in 2005.
EBIT grew organically thanks to the buoyant
volume growth and a better pricing and sales mix,
despite higher costs related to the expansion of
the distribution business and the new collective
wage contracts.
In August Heineken announced the sale of the
land in the centre of Seville where the existing
brewery is located. The receipts from the sale
will be paid in instalments over three years
(2006-2008). The construction of the new
4.5 million hectolitre brewery in Seville is
proceeding according to plan and operations
will start in 2008.
France
Consolidated beer volume
Market share
Market position
6.6 million hectolitres
30.9 per cent
2
France remains a challenging market for brewers,
particularly in the on-trade in the first half of the
year. The implementation of the Loi Dutreil, the
law which restricts discount payments to retailers,
but gives our customers the opportunity to
include discounts to consumer prices, had a
significant impact in 2006. Heineken France
volumes decreased in line with market trends.
Both Heineken, up 1 per cent, and Desperados,
up 0.9 per cent, outperformed the market.
Q Q Heineken N.V.
£0 Annual Report 2006
