CHIEF EXECUTIVE'S STATEMENT
I'M
8 REPORT OF THE EXECUTIVE BOARD
HEINEKEN N.V. ANNUAL REPORT 2008
Regional contrasts
The year was also one of regional contrasts. In Western
Europe and the Americas, the impact of the economic crisis
on consumer sentiment was felt early and volumes in many
markets contracted.
Central and Eastern Europe continued to grow volumes,
but experienced much tougher trading conditions in some
big markets, such as Russia and Romania, particularly in
the fourth quarter, resulting in marginal profit decline.
The picture in our Africa and the Middle East and Asia Pacific
markets was completely different. We experienced strong
growth, driven by good macro-economic and social
developments and by the increasing strength and popularity
of our brands. As in 2007, Africa and the Middle East was
again our fastest growing region in terms of both volume and
profit (Africa and the Middle East EBIT (beia) 42.0 per cent).
The Asia Pacific region continued its solid growth record,
aided by good results from our own businesses and from
Asia Pacific Breweries (APB) our jointly owned venture with
Fraser and Neave.
Our brands made the difference
Once again, the Heineken brand has been at the heart of our
growth, and confirmed its status as our Company's flagship
brand and key differentiator. With volume growth of 4.7 per
cent, the brand again outperformed the international
premium segment, growing in almost all of our European and
African markets. The brand also showed double-digit growth
in markets like the UK, Canada, Chile, Argentina, Indonesia,
Taiwan and South Korea.
Alongside this, many of our local brands performed strongly.
In Nigeria, Star and Gulder grew by 12 per cent and 15 per
cent respectively. In Rwanda, Congo and Burundi the Primus
brand grew by more than 18 per cent. Strongbow cider in
the UK grew and in America, the FEMSA portfolio grew more
than 8 per cent. Kelt in Slovakia, Warka in Poland, Bintang in
Indonesia, Desperados in France and Poland, Karlovacko in
Croatia, Three Bears and Dr. Diesel in Russia also grew well,
demonstrating the strength and depth of our portfolio.
A stronger footprint, a clear advantage
During the year, we entered 11 new markets, and completed
the largest acquisition in our history when we acquired the
Scottish Newcastle businesses in the UK, Portugal, Finland,
Belgium, Ireland, India and the USA. In addition, we acquired
breweries across Europe in markets such as Belarus, Serbia,
Romania, the Czech Republic and Switzerland. In Africa, we
acquired Algeria's leading brewer, completed greenfield
expansion in Tunisia and Lubumbashi and began construction
of a brewery in South Africa, on schedule to be operational in
the second half of 2009. In Asia, we completed greenfield
projects in Laos and Mongolia.
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