26
REGIONAL REVIEW - WESTERN EUROPE
REPORT OF THE EXECUTIVE BOARD
HEINEKEN N.V. ANNUAL REPORT 2008
Cider volume grew 6.5 per cent and market share in cider
reached 48 per cent, driven by the excellent performance
of both the premium Bulmer's brand and of the mainstream
Strongbow brand.
Foster's, the key mainstream brand, refrained from heavy
promotional activities, preserving its long-term brand equity
and positioning. This affected volume, which was 10 per cent
lower. John Smith's, our leading ale brand, and Kronenbourg
1664, the second premium lager in our portfolio, performed
in line with the market.
The exceptional economic circumstances required us to
reduce the value of our pub portfolios in the UK by €51 million.
BELGIUM
Consolidated beer volume
Market share
Market position
FINLAND
I.0 million hectolitres
II.9 per cent
2
The beer market continued to decrease due to declining
consumer confidence. Market share of Alken-Maes
Breweries, acquired from S&N, was lower, as sales of its main
brand Maes were affected by a 5 per cent price increase.
EBIT (beia) was lower as better pricing was offset by the
combined negative effect of lower volume and higher input,
and energy costs.
Consolidated beer volume
Market share
Market position
1.1 million hectolitres
29.5 per cent
2
Despite the overall beer market trend, 2008 marked a
turnaround for the Hartwall business, as the business grew
its market share for the first time in 10 years. The beer
market declined 3.5 per cent, affected by the introduction
of the smoking ban and exceptionally poor summer weather.
Hartwall, part of the S&N acquisition, gained more than 1 per
cent market share, mainly thanks to its strong performance
in the off-trade.
Both the Foster's brand and the Karjala brand improved
their equity and sales volume, and partially offset the lower
volume of the Lapin Kulta brand. The Heineken brand will
become part of Hartwall's portfolio in 2009.
The market trend for other beverages in Hartwall's wide
product range, mainly waters and soft drinks, was weak.
Total beverage volume decreased 1 per cent and, together
with higher costs, affected EBIT (beia) negatively.
IRELAND
Consolidated beer volume
Market share
Market position
1.3 million hectolitres
22.3 per cent
2
Heineken Ireland increased its market share. The Irish
beer market decreased 5.5 per cent in 2008, mainly in
the on-trade. Revenue and EBIT (beia) of Heineken Ireland
increased organically, thanks to higher prices, which more
than offset lower volume (-1.5 per cent) and higher costs.
The Heineken brand increased its share in the beer market.
Reported EBIT in Ireland decreased slightly due to
exceptional costs related to the first-time consolidation
of Beamish Crawford as of 3 October 2008.
In the last quarter of 2008, Heineken received anti-trust
approval for the unconditional acquisition of Beamish and
Crawford, part of the S&N acquisition. After a review of the
business, Heineken announced its intention to close the
Beamish Crawford brewery in Cork in 2009, in order to
reduce overcapacity and improve efficiency.
