Regional review cor
"Across the region, we are obtaining
leading market positions and
brands. Fast-growing markets, new
acquisitions and further top-line
growth give us an excellent platform
from which to develop both the
Heineken brand as well as our
local and regional brands. We are
excellently positioned to build an
increasingly profitable business."
Accelerate top-line growth
PET
Packaging is a key element in Heineken's marketing and innovation
strategy. New pack types create new consumption moments, build
excitement around our brands, improved margins and higher
volumes.
PET is the acronym for 'PolyEthylene Terephthalate', which is
a lightweight, colourless, transparent plastic. PET is difficult
to break and is widely used for soft drinks and water; the
first PET bottle was patented as early as 1973. PET is cheaper
to produce than other types of packaging and can easily be
recycled through incineration.
26 Report of the Executive Board
In the world beer market, glass bottles are by far the most
important pack type, accounting for 64 per cent of total volume.
The bottled beer segment is still growing, driven by the increasing
beer consumption in emerging markets. Beer in cans ranks second
in terms of importance, with 20 per cent, whilst draught beer
accounts for 11 per cent of world beer consumption. PET
represents the remaining 4 per cent of world volumes, but its share
is growing fast.
Especially in Central and Eastern Europe, beer in PET bottles is
well established. We estimate that beer in PET bottles accounts
for more than 40 per cent of some markets such as Macedonia,
and more than a third of volume in markets such as Romania and
Bulgaria, and is swiftly growing in both Germany (6 per cent) and
Croatia (7 per cent). PET bottles in Russia deserve special mention:
they account for 47 per cent of the beer market and are growing
strongly. PET is available in many sizes, ranging from 0.5-litre to
5-litre bottles. The most popular format, however, is 2.5-litre, which
alone accounts for 25 per cent of the market. Heineken Russia's
beer sales in PET account for more than half of its volume. All of
our 10 breweries in Russia produce beer in PET.
Heineken N.V. Annual Report 2007
Heineken N.V. Annual Report 2007
Heineken is very active in the PET segment in Central and Eastern
Europe and has developed a 'high quality' PET proposition named
'Top Star', which offers a unique look and feel to the packaging.
Several leading brands in the region, such as Goldenbrau
(Romania), Soproni (Hungary) and Bochkarev (Russia), have
successfully upgraded this format.
2006
2007
This growth in the region is driven in part by
an increase in purchasing power and a structural
shift from spirits to beer. Economic growth in new
member states of the European Union and the
development of a modern off-trade also continues
to play an important role in the long-term growth
of beer consumption of the region. With growing
income levels across many markets, the interest
in premium beers is increasing strongly.
The Heineken brand added more than 400,000
hectolitres (+19 per cent) to its volume, thanks to
initiatives such as the introduction of clear plastic
labels in Romania and Hungary, the installation
of 11,000 Extra Cold draught beer units, the
introduction of DraughtKeg and innovative
advertising campaigns. Russia, Greece and Poland
were major drivers of growth of the Heineken brand.
Revenue increased organically by 8.1 per cent,
and fluctuations in currencies in Poland, Romania
and Slovakia contributed €41 million to revenue
(+1.2 per cent). EBIT (beia) increased 22 per cent
to €444 million largely driven by higher volume,
a positive price and sales mix and a modest
increase in fixed costs.
Revenue
€3.7 billion
EBIT
€381 million
EBIT (beia)
€444 million
Consolidated beer volume
51.1 million hectolitres
Heineken volume
2.6 million hectolitres
Consolidated beer volume
In millions of hectolitres
2003 I
2004 I
2005 I
In 2007, beer consumption in Central and Eastern
Europe was exceptionally strong as a result of
a mild winter and spring. Consolidated volume
increased organically by 8.3 per cent, with
Russia, Poland and Romania as major contributors.
Acquisitions in 2007 in the Czech Republic
(Krusovice Brewery) and Germany (Schmucker
Brewery) contributed 287,000 hectolitres.
Nico Nusmeier
President Heineken Central and Eastern Europe
