OPERATIONAL
REVIEW
14
A key priority is to drive top-line growth
through the creation of a global portfolio
that combines the power of local and
international brands. The Heineken
brand is our jewel in the crown.
REPORT OF THE EXECUTIVE BOARD
HEINEKEN N.V. ANNUAL REPORT 2008
Top-line growth is the key measure of our strength. To
achieve it, we focus on building our brands and portfolios
in terms of value, volume and profitability. We seek to
balance the management and growth of our local, regional
and global brands, with the management and growth of
Heineken, the world's most valuable international premium
beer brand. Despite the challenging market conditions,
which saw heavy increases in raw material and packaging
costs, and a worsening economic environment, our top-line
performance continued to improve across our brand
portfolio, with an organic 7.4 per cent increase in revenues
and an organic 3.5 per cent rise in consolidated beer volume.
In 2008, we extended our portfolio of brands through the
acquisition of Scottish Newcastle's beer and cider brands.
These offer exciting new opportunities to complement our
portfolio in a number of markets.
The Heineken brand
The Heineken brand is the jewel in the crown of our portfolio
and is at the heart of our Company. In 2008, it further
strengthened its position as the undisputed leader among
international premium brands. Total Heineken volume in the
premium segment grew by 4.7 per cent despite challenging
economic conditions in the USA in particular. It is worth noting
that double-digit growth was achieved in Africa and Asia
Pacific, providing a positive balance to the brand's strong
position in mature markets. In developed European premium
beer markets, the Heineken brand maintained or increased
its market share and leading positions albeit from a somewhat
lower volume base. With the acquisition of Scottish Newcastle,
the growth opportunities for the Heineken brand in the UK,
Portugal and Finland have improved considerably. We
continue to take a long-term view by investing in the brand
and protecting our premium position.