€3,051m (2017: €3,028m)
€411 m (2017: €388m)
10.3% (2017: 9.9%)
tiï O Q,
Regional Review (continued)
Africa, Middle East and Eastern Europe
Our volume growth was positive, despite a continued
challenging trading environment across the region.
Growth was particularly strong in Russia, South Africa
Providing solar powered
lighting to local communities
Report of the Executive Board
Report of the Supervisory Board
Key brands: Heineken®, Primus, Amstel, Walia, Soweto
In 2018, macro economic challenges continued in
the region, albeit more stable compared to last year.
However, increased inflation and currency pressure
weighed on performance, particularly in Nigeria.
In Egypt, we saw a return to volume growth driven
by a relatively stable macro-economic environment
and increased tourism.
Heineken® performed well in Africa, Middle East and
Eastern Europe, in particular in South Africa, Nigeria
and Russia. Our business in South Africa delivered
strong growth for Heineken®, as the brand leads the
premium segment and provides consumers with
refreshing moments. In Rwanda, we started the
local production of Heineken® in our brewery.
Heineken® continues to see strong growth in Russia,
which is also one of our largest markets globally for
In Nigeria, our business embarked on a
transformation exercise and a review of its operations,
with emphasis on improving our route-to-market,
streamlining the portfolio of brands, cutting costs
and building an agile organisation that can more
effectively respond to changing market dynamics.
In Ethiopia, our Walia brand continued to
perform, delivering double digit volume growth.
We successfully completed the extension of our
Kilinto brewery, adding additional capacity.
In South Africa, our Strongbow cider brand showed
continued momentum and performed very well,
out-pacing our expectations and growing the overall
cider category with the Red Berry flavour variant.
Our cider brands benefited from new local
production capacity, greatly improving the
profitability of the category. Our South African
Soweto brand saw strong performance as it
resonates well with local consumers.
In Russia, both Affligem and Krusovice performed
very well. We successfully launched our local Russian
version of Orchard Thieves. In the third quarter
of 2018, we announced a long-term partnership
agreement with Molson Coors for the distribution
of Miller Genuine Draft and Staropramen in
Russia. The deal gives us the exclusive rights for the
manufacture, sales and distribution of Miller Genuine
Draft and Staropramen from January 2019.
Our balanced portfolio of premium, mainstream
and economy brands is a key part of our success
in the region. We continued to invest in our existing
brands and in product innovation. We increased
our footprint in Africa and completed our brewery
Our low- and no-alcohol category continues to
perform well in the region with our established
malt based beers, but also our innovations such as
Star Radler in Nigeria, Walia Radler and Sofi Buna,
a coffee-flavoured malt beer in Ethiopia.
Heineken N.V. Annual Report 2018 ^22^
Financial Statements Sustainability Review Other Information
Consolidated beer volume
volume as of total
Net revenue (beia)
Operating profit (beia)
Operating profit (beia) as of total
footprint with a
brewery in Mozambique
Our Mozambique greenfield
brewery has been completed,
enabling us to offer consumers
locally brewed beers made by
Mozambicans for Mozambicans.
Bralirwa, our business in Rwanda,
invested in and collaborated with the
Ministry of Local Governance and
Rwanda Energy Group to provide
solar energy to 283 families living
near the Bramin farm, where Bralirwa
grows the agricultural raw materials it
needs to produce its products.