23
HEINEKEN N.V. ANNUAL REPORT 2008
Western Europe is Heineken's most profitable region,
accounting for 57 per cent of the pro forma (all acquired
businesses assumed to be part of the Group as from
1 January 2008) revenue and 40 per cent of the pro-forma
EBIT (beia) of the Group. Despite exceptionally volatile and
deteriorating global macro-economic factors, Heineken
was able to balance lower volume by increasing prices
and improving its sales mix, the latter mainly by delivering
growth of the Heineken brand.
EBIT (beia) grew organically as the effect of a positive price
and sales mix and realised cost reductions exceeded the
impact of lower beer volume and the increase in input and
energy costs. In addition, the first-time consolidation of S&N
and Eichhof Beverage Holding contributed positively.
Volume of the Heineken brand increased 1.9 per cent
to 7.6 million hectolitres. Growth was driven by strong
marketing programmes and innovations, such as the
Extra Cold beer programme, which drove good
performances in France, the UK and Switzerland. In 2008,
DraughtKeg was rolled out for the first time for brands other
than Heineken (e.g. Pelforth in France) and in 2009, a further
broadening of the offering is planned.
Beer markets in Western Europe faced a challenging year
due to the combined impact of the financial crisis, mixed
weather, smoking bans in France, the UK, Finland and the
Netherlands, and unprecedented increases in excise duties
in the UK. Beer consumption in Western Europe came
increasingly under pressure, particularly in the on-trade and
consolidated beer volume declined 1.6 per cent organically.
In total, consolidated beer volume increased, mainly due to
the first-time inclusion of S&N for 8 months and Eichhof
Beverage Holding (+12.8 million hectolitres).
