Regional review - Western Europe continued
24 Report of the Executive Board
The Netherlands
France
Consolidated beer volume
Market share
Market position
5.5 million hectolitres
48.7 per cent
1
Revenue of Heineken Netherlands was only
fractionally down as the increase in selling prices
across the portfolio compensated most of the
effect of lower volumes. The Heineken brand
maintained its market share, whilst Amstel brand
volumes decreased, largely due to a higher-than-
average price increase. Organic growth in
EBIT (beia) was strong, driven by efficiency
improvement across the supply chain.
Innovation initiatives proceeded at fast pace in the
Heineken brand's home market: Extra Cold beer
installations are now available in 10 per cent of
the on-trade outlets where Heineken's brands are
served. The first of a new Amstel franchise bar, the
Loca cafes was opened in 2007 with more to follow
in 2008.
A new cider-based drink, Jillz, was tested in two
Dutch cities and resulted in positive consumer and
on-trade reactions. A further roll-out is planned
for 2008.
Volume at Vrumona, the soft drinks company in
the Netherlands, was lower due to unfavourable
summer weather, however EBIT (beia) improved.
Consolidated beer volume
Market share
Market position
6.3 million hectolitres
31.2 per cent
2
EBIT (beia) grew driven by improvement in the
price and sales mix and cost reduction. Revenue
increased slightly. The Heineken brand increased
its market share, posting 7 per cent growth on the
back of continuous innovation and the introduction
of new consumer packs. In the last quarter of 2007,
the Heineken brand gained the leadership position
in the off-trade segment. The Pelforth Blonde
brand developed positively during the year.
Total beer volume of Heineken France was
lower, particularly in the on-trade due to the
effects of mixed weather and lower volumes
of low-priced beers.
The one-way BeerTender, introduced in October
2006, has now sold more than 100,000 appliances.
Italy
Consolidated beer volume
Market share
Market position
5.7 million hectolitres
31.1 per cent
1
Volume of Heineken Italia increased, driven by the
positive performances of its key brands Heineken
and Birra Moretti. The Heineken brand grew
by 5.4 per cent and reached the 1.5 million
hectolitres mark; Moretti continued to grow,
selling more than 2 million hectolitres, extending
its leadership in the off-trade segment. The roll-out
of Moretti 0/0, the alcohol-free beer is on track.
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Heineken N.V. Annual Report 2007
Both revenue and EBIT (beia) increased, driven
by higher volumes, better prices implemented
early in 2007, and an improvement in the sales
mix. The Ten-Can, a 10-litre keg, which can be
combined with the mobile Xtreme draught beer
unit was successfully launched.
Spain
Consolidated beer volume 11.4 million hectolitres
Market share 31.0 per cent
Market position1
Volume at Heineken Espana grew healthily and its
market share improved.
The Heineken brand was the main driver behind
the good performance. Volume of the brand
grew almost 8 per cent as a result of focused and
innovative marketing, the successful nationwide
introduction of DraughtKeg and the roll-out of the
Extra cold beer programme.
Cruzcampo, Heineken Espana's mainstream brand,
grew 2 per cent in Andalusia, its home region.
Cruzcampo lager benefited from the halo effect
of the recently introduced Cruzcampo Light, which
sold 60,000 hectolitres during the year. Revenue
and EBIT (beia) increased as a result of the positive
volume trend and a better sales and price mix.
The greenfield brewery in Seville is now complete,
and as planned, will fully replace the old brewery
in the city in the first quarter of 2008. This will
lead to significant savings in production and
logistic costs.
United Kingdom
Consolidated beer volume
Market share
0.5 million hectolitres
1.1 per cent
Consolidated beer volume exceeded 0.5 million
hectolitres. Volume of the Heineken brand
increased 20 per cent, continuing its strong
momentum and exceeding 0.4 million hectolitres
in a market that was affected by exceptionally
poor weather and the introduction of a smoking
ban in the on-trade channel. Consumer acceptance
of the premium positioning of Heineken is rising
further also driven by the high-profile introduction
of the DraughtKeg and the eye-catching 'continental
pour' advertising campaign. Marketing investment
in the Heineken brand was at a high level and as
a result, EBIT (beia) remained negative.
Ireland
Consolidated beer volume
Market share
Market position
1.1 million hectolitres
22.2 per cent
2
The Heineken brand continued to grow its volume
in the Irish market by 3.5 per cent. Total volume
of Heineken Ireland increased 2.7 per cent and,
in combination with the positive price and sales
mix effect, drove the growth in revenue and
EBIT (beia).
Heineken N.V. Annual Report 2007
