DRAUGHT BEER
25
HEINEKEN N.V. ANNUAL REPORT 2008
jjj ITALY
Consolidated beer volume
Market share
Market position
THE UNITED KINGDOM
5.6 million hectolitres
31.5 per cent
2
Heineken Italia increased market share thanks to the positive
performance of its key brands. Beer volume at Heineken
Italia fell 2.2 per cent, broadly in line with a market affected
by substantial price increases, prolonged periods of wet
weather and declining consumer confidence. Volume of the
Heineken and Moretti brands were slightly lower due to
significant price increases. Moretti Zero the alcohol-free
version of Moretti, continued to grow satisfactorily.
Revenue grew organically, driven by better prices and stable
revenue of the wholesale operations, Partesa. Higher input
and energy costs and declining volumes in the ontrade
resulted in a lower EBIT (beia). The streamlining of the Italian
wholesale operation is proceeding as planned.
THE NETHERLANDS
Consolidated beer volume
Market share
Market position
5.4 million hectolitres
47.6 per cent
1
The beer market slowed due to unfavourable weather, the
introduction of the smoking ban in July and lower consumer
confidence.
Beer volume of Heineken Netherlands was 2.2 per cent
lower, affected by a substantial price increase, ahead of
the competition. The Heineken brand, sold as a mainstream
proposition in the Netherlands, was able to maintain its
volume.
EBIT (beia) grew, driven by a better packaging mix, strict
cost control and higher prices. Revenue was also higher.
In 2008, the wholesale operations were streamlined further
and the range of products was expanded.
EBIT (beia) at Vrumona, the soft drink unit, was higher thanks
to better prices and a favourable shift in sales mix.
Consolidated beer volume
Market share
Market position
8.9 million hectolitres
28.2 per cent
1
The UK beer market experienced an exceptionally
challenging year, decreasing by 5.1 per cent. This was
driven by a number of external factors such as the financial
crisis, two increases in excise duties within 12 months and
continued impact of the smoking ban in the on-trade. The
on-trade segment was hit particularly hard (-9.5 per cent),
whilst off-trade volume was still slightly positive (+0.5 per
cent) due to higher price promotion activity by retailers.
The sharp decline in the beer market was aggravated by the
steep drop of the British Pound against the euro (-21 per
cent). The abrupt and unexpected change in the market, led
to a much lower than anticipated revenue and EBIT (beia) in
euro of S&N UK. Its domestic beer market share was slightly
lower, mainly due to its overweight in on-trade and a
reduction of price promotions in the off-trade.
Since the acquisition of S&N, Heineken has strengthened
the UK brand portfolio with the inclusion of Heineken®
and selected other brands from the Heineken Group. The
business now has the strongest and most complete brand
portfolio in the market and is the leader in cider. Increased
marketing investment in the beer brands will further
strengthen the brands' equity and performance.
The Heineken brand performed strongly, growing 24 per
cent to more than half a million hectolitres thanks to the
success of the Extra Cold beer programme, the extension
of the distribution network and new commercial activations.
served here.
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