Western Europe (continued)
United Kingdom
Ireland
Portugal
Finland
26 Annual Report 2009 - Heineken N.V.
Report of the Executive Board
Regional Review
Consolidated beer volume:
12.1 million hectolitres
Market share: 26.5%
Market position: 1
The UK beer market declined 4.2 per cent
with an improvement of the trend in the
second half of the year. The premium
segment recorded growth.
Heineken UK outperformed the market
significantly, gaining market share with beer
volume only slightly down. The Foster's
brand grew 2.6 per cent, benefiting from its
new brand campaign, extended distribution
and improved marketing. John Smith's, the
UK's leading ale brand declined but less than
the market.
The cider market grew 8 per cent, driven by
a stronger performance in the off-trade and
a broader distribution in the on-trade.
Bulmer's success is driven by the increasing
consumer response and the development of
bottled premium cider.
Organically, revenues grew by low single
digits as better pricing and an improved
brand mix more than offset lower volumes.
EBIT grew organically 35 per cent, thanks to
realising cost synergies, aggressive further
cost cutting and lower purchasing prices.
During 2009, significant steps were taken to
further streamline the business. In 2010, the
Berkshire Brewery and the Dunston Brewery
will be closed.
Following the acquisition of Scottish
Newcastle, Heineken consolidated the assets
and liabilities of Globe in its balance sheet in
2008. In 2009, Heineken purchased most of
the outstanding debt at significant discount
to the face value and book value, realising an
exceptional book gain of EUR215 million. In
addition, Heineken has lowered the value of
its interests in pubs in the UK.
Consolidated beer volume:
1.4 million hectolitres
Market share: 26.7%
Market position: 2
Consolidated beer volume:
3.2 million hectolitres
Market share: 47.0%
Market position: 2
Consolidated beer volume:
1.4 million hectolitres
Market share: 27.9%
Market position: 2
The severe effect of the recession meant beer
consumption declined by high single digits.
On an organic basis, Heineken Ireland
increased its market share. In addition, it
benefited from the growth of the Beamish
Crawford and Coors Light brands. Volume of
the Heineken brand declined 6.8 per cent but
outperformed the market thanks to strong
draught beer sales.
The beer market decreased 3.3 per cent,
due to the effect of the economy on the
on-trade segment.
Centraleer gained market share, driven by
the growth of the Heineken brand. The
Sagres brand is now the largest-selling brand
in Portugal. Higher selling prices contributed
The total beverage market was only
1 per cent lower. Private labels in ready-to-
drink beverages and lower priced beers
showed growth.
Hartwall's EBIT grew, thanks to strong cost
control and despite lower volume due to
declines in on-trade and in the premium
Underlying revenue and EBIT were double
digits lower due to weak volume, increased
promotions and the limited scope for price
increases. Heineken Ireland focused on
further cost reduction and the Beamish
Crawford Brewery in Cork was closed.
to the growth in revenue and, together with
cost reductions, drove an organic increase
in EBIT (beia).
Volume of Centralcer's mineral water
business, in particular the premium brand
"Luso", was affected by downtrading to
private labels.
segment. The successful repositioning of
the Lapin Kulta brand at the end of 2008 had
a positive effect on volume. The Heineken
brand was added to Hartwall's portfolio with
good sales results.
Hartwall announced that the Tornio Brewery
will close in 2010.
