Heineken is always seeking to maintain an optimal
balance between activities in stable, mature
markets and those in fast-growing developing
markets, and it is nowhere as dynamic and bursting
with potential growth as in Central and Eastern
Europe and Russia. From Poland to the Urals,
Heineken is staking its claim across a region that is
justifiably known as the beer world's 'Wild East'.
Eastward Ho!
AUGUST 2005
GO EAST!
It's not that long ago that "drinking" and "Eastern Europe" often conjured
up grey images of vodka-swilling, downtrodden masses. But following the
fall of communism and the more recent accession of several of the
countries in the region into the EU, that image has become outdated.
Rapid economic growth is creating improved standards of living and
rising disposable income in these countries, giving consumers a thirst for
beer. Across the region there is a historical move away from drinking
spirits to beer, to the extent that it has become a substantial part of the
world's beer market with a consumption of 98 million hectolitres, with an
expected growth rate for the next five years of 4% (compared to 2% in the
world beer market).
Large growth potential has been forecast, especially in the premium
beer segment as consumers aspire to Western lifestyles. The flagship
Heineken brand has achieved robust sales increases within its Central and
Eastern European (CEE) market of 12.4% and even more growth is
expected. Heineken's strategy has been focused on building brand
portfolios that will drive the top line and improve efficiency of mergers
acquisitions spending, creating value through its wholesale network,
realizing integration synergies and further cost reduction, and leveraging
economies of scale.
Russia, the largest market in the region in both population and sales, is
following this spectacular growth algorithm, currently the 5th biggest beer
market in the world. Heineken Russia - the operating company managing
