08 Report of the Executive Board
Chief Executive's Statement continued
The market-by-market implementation of our
brand portfolio reviews is well under way. It has
clearly delivered growth on many of our leading
regional and national brands such as Primus
(+14.5 per cent), Star (+13.1 per cent), Ochota
(+14.5 per cent), Cruzcampo (+1.7 per cent),
Zywiec (+8.2 per cent), Gulder (+10.9 per cent),
Goldenbrau (+15.5 percent) and Three Bears
(+46.2 per cent).
This focused approach to investment in brand
building, innovation and execution is ultimately
what allows us to increase our profitability.
Accelerate efficiencies
Key in our drive for efficiency is our 'Fit2Fight'
three-year-cost reduction programme, aiming
to save €450 million (including inflation) before
tax from our fixed cost base over the period
2006-2008. This year, the second year of the
programme, we delivered additional gross savings
of €191 million. To date, as we promised we would,
we have realised €305 million or 68 per cent of the
total programme.
The savings are flowing through to the bottom line,
enhancing our profitability. In combination with
stronger top-line growth, this has delivered the
strongest operational profit growth in many years.
The Fit2Fight rationale and the techniques for
achieving it are becoming more and more
embedded in the organisation and are crossing
all disciplines.
Looking ahead to 2008, we will complete our
Fit2Fight programme on time and with the stated
level of savings.
Accelerate speed of implementation
We have begun the implementation of an internal
project on information logistics, which will support
and simplify our Company-wide decision-making
processes, by ensuring that the right level of
accurate information on any aspect of our business
is available in a timely manner.
In parallel, we have made good progress on
our major business-wide change programme to
centralise IT and to introduce common systems
and processes.
