Our revenues were up 1.7 per cent organically
year-on-year. Part of the success was due to the
Heineken brand, which clearly benefits from the
focus on innovation, and the new BeerTender
compatible with the DraughtKeg. Likewise, our
consistent price policy, improved sales mix and
successful marketing concepts such as 'Culture
Bière' in Paris, a vibrant, gastronomic and retail
experience dedicated to the celebration of beer,
helped protect revenues.
EBIT improved thanks to a better contribution
from our wholesale operations, ongoing cost
cutting in the context of the Fit2Fight programme
and the improved mix. In addition, the book
gain from the sale of four distribution centres
was realised.
Italy
Consolidated beer volume 5.7 million hectolitres
Market share 31.9 per cent
Market position 1
The market in Italy increased, despite an excise
duty increase, driven by low-priced imports.
Other markets in Western Europe
In the United Kingdom, Heineken brand volume
rose by 24 per cent. This reflects consumers'
growing acceptance of the brand's premium
positioning and an improved distribution network.
In Ireland, we reinforced our number one position
in the growing lager segment, increasing our
overall market share to more than 21 per cent.
Volumes were up 2 per cent, and Heineken Ireland
outperformed the market. EBIT grew as a result
of good top-line growth.
The sponsorship of the Heineken Rugby Cup
contributed to this success, as did the roll-out of
our David draught system. The on-trade is in slight
decline due to changing beer drinking habits and
anti-drink-driving activities.
In Switzerland volumes grew by 1 per cent
with considerable performance improvements
in Heineken and Calanda®.
The Heineken brand showed healthy growth,
reaching a record volume. Birra Moretti, our key
brand in Italy, continued its growth to more than
2 million hectolitres. During the summer we
launched Birra Moretti Zero, a non-alcoholic beer,
targeting the growing alcohol-free segment.
EBIT increased thanks to stronger pricing
and stringent cost control, despite the lower
profitability in the wholesale business. Part of
the Fit2Fight programme in Italy is focused on
improving the performance of distribution.
As a result of the closure of the Pedavena
brewery and further restructuring, headcount
was reduced by more than 325.
Heineken N.V. QQ
Annuaf Report 2006 £*73
