Central and Eastern Europe (continued)
Austria
Poland
Russia
Romania
30
Report of the Executive Board
Regional Review
Consolidated beer volume:
4-3 million hectolitres
Market share: 47-4%
Market position: 1
The beer market was 3.0 per cent lower,
due to extra sales in 2008 driven by the
European Football Cup and softer volumes
in the on-trade during 2009. The shift
towards off-trade and lower margin beer
in cans continued.
Heineken Austria's EB1T (beia) grew mid
single digit thanks to better pricing and the
positive effects of cost savings, despite
lower volume.
As the Company focused on higher margin
segments, market share declined due to the
growth of the low end of the market. This
trend also affected volumes of mainstream
brands, Zipfer, Goesser and Puntigamer. The
Heineken brand grew 3.7 per cent.
Consolidated beer volume:
TI.4 million hectolitres
Market share: 35.0%
Market position: 2
Consolidated beer volume:
12.8 million hectolitres
Market share: n.9%
Market position: 3
Consolidated beer volume:
5.2 million hectolitres
Market share: 29.5%
Market position: 2
After years of strong volume growth, the
Polish beer market fell 10 per cent, affected
by the challenging economy, an excise duty
increase and higher selling prices.
The Zywiec Group gained market share,
thanks to a positive performance in the
off-trade segment. The Warka brand,
positioned in the mainstream segment,
grew and Desperados volumes more than
doubled. Both the Heineken and Zywiec
brands declined, affected by above-average
declines in the international and national
premium segments.
Both reported revenue and EBIT (beia) in
euro were substantially lower, mainly due
to the average 23 per cent devaluation of the
zloty versus the euro, which accounted for a
negative translation impact of EUR37 million.
Organically, EBIT (beia) declined.
The Russian beer market decreased double
digit affected by the severity of the recession
that drove consumers to switch from economy
beers into low-priced vodka. The premium
beer segment performed relatively well.
Heineken Russia adjusted its commercial
strategy. The new strategy focuses on four
key national brands and six regional brands,
whilst commercial support for non-strategic
brands was reduced. Prices of the key
premium brands were increased ahead
of the competition. Underperforming SKUs
were rationalised.
Due to the recession and the initial effect
of the new commercial strategy, volume
of Heineken Russia decreased 17 per cent,
but profitability increased substantially.
Reported EBIT was significantly up, despite
being negatively affected by the weak rouble,
which accounted for a total translation
impact in excess of EUR 10 million.
Strong progress was made with cost
reductions. Amongst others, Heineken Russia
closed the Stepan Razin Brewery in
St. Petersburg and a brewery in Novotroitsk.
Per January 1st, 2010, excise duty on beer
tripled and Heineken Russia passed the
increase on in its prices.
The beer market decreased 11.3 per cent
driven by the off-trade channel, which was
negatively affected by declining purchasing
power and less money transfers by
Romanians working abroad.
Heineken Romania's volume decreased in line
with the market. Goldenbrau outperformed
the market, but Heineken, Ciuc and Bucegi
brands declined faster than the market.
Higher selling prices could not fully offset
the effect of lower volume and, therefore,
revenue and EBIT declined organically. In
addition, the devaluation of the lei negatively
affected reported EBIT in euro by more than
EUR7 million. Heineken Romania continues
to focus on long-term brand building, sales
execution and cost reduction. In 2009, three
malteries were closed and in January 2010 the
closure of the Hateg Brewery was announced.
Annual Report 2009 - Heineken N.V.
