Regional review - Central and Eastern Europe continued 28 Report of the Executive Board In 2007 and January 2008, Heineken continued the expansion of its business in the region through a series of targeted acquisitions. At the end of 2007 the Krusovice brewery was acquired in the Czech Republic, whilst the acquisition of the Rodic brewery in Serbia was announced. Early 2008, Heineken established a partnership with Efes Breweries International that will invest in the growing Uzbek beer market. In addition, both companies intend to merge the brewing operations in Serbia and Kazakhstan, leading to number two market positions in both countries. Russia Consolidated beer volume 15.0 million hectolitres Market share 12.8 per cent Market position3 The winter and spring were exceptionally mild in Russia leading to exceptionally strong market growth. Beer volume of Heineken Russia grew 16 per cent, passing 15 million hectolitres. Total volume of the seven strategic brands, representing around 60 per cent of the portfolio, grew faster than the overall market increasing 18 per cent. Poland Consolidated beer volume 11.8 million hectolitres Market share 33.0 per cent Market position2 Beer volume increased 7.3 per cent, with a stronger performance in the high-end segments of the market. In particular the Heineken brand performed well, growing at 13 per cent and gaining share in the international premium segment. Zywiec, the national premium brand, grew high single digit driven by higher domestic volumes and an increase in export mainly to the USA and UK. As a result of its double digit volume growth, Warka's market share grew. Revenue of Grupa Zywiec saw a double-digit growth rate with volumes accounted for half of the increase and higher prices, a better sales mix and a positive currency effect accounting for the remainder. EBIT (beia) grew significantly, helped by costs savings in production and the introduction of a shared service centre. Volume of the Heineken brand grew nearly 40 per cent. Amstel Pulse continued to develop well, driven by consistent marketing, the introduction of a 50cl bottle and the increase in numerical distribution. Ochota, our key brand in the mainstream segment and Three Bears (positioned at the top end of the economy segment) grew strongly. Volume of the Botchkarov brand was slightly lower. Revenue grew at a double-digit rate, despite the effect of the lower rouble against the euro. EBIT (beia) increased, driven by the effect of higher revenue that was only partially offset by the impact of higher input costs and marketing investments. Production capacity is being upgraded and expanded, and headcount at the breweries continued to reduce. Heineken N.V. Annual Report 2007

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