Majestic Magyars
The Hapsburg's still toast
THE WORLD OF HEINEKEN
The story in Hungary was one of big challenges and rapid development.
The total beer market last year showed a marginal decline during a year
which was dominated by strong price competition in the mainstream and
economy segments. As a result of the fast increase of cheap imports in cans,
the volume of locally produced beers declined. BRAU UNION'S current
market share is 27.1%. The share of the super premium segment increased
as the Heineken brand took the leading position in the segment.
Austria, by contrast, is a very competitive, mature beer market, being
historically part of the West, despite its central European location. After an
exceptionally good year 2003, in terms of volume, sales proceeds and
results, the year 2004 was slightly poorer. In total the Austrian beer market
was very competitive and declined by 1.3% p.a. to 9 million hectolitres. Per
capita consumption decreased from 110 litres in 2003 to 108 litres in 2004.
Nevertheless, BRAU UNION Austria was able to reach a stable result and
had good progress in generating cash flow.
In general, the more western-oriented, the more beer is specifically aimed
at non-traditional market segments, such as women and men who have not
been drinkers of beers. High-design bottles like the Heineken 'Long Neck',
are seen as trendy objects in themselves; 'beer' is re-defined as a 'beer
experience', its appeal broadened.
Austria's Zipfer Sparkling is a neat example. This new recipe - dry,
tangy beer with low bitterness - has had a big impact on consumers,
selling 6.9 million of its distinctive and design-award winning 0.25 litre
twist-off bottles last year.
Zipfer's alcohol content of 5.3% by volume and slightly higher carbon
content contribute to the beer's liveliness. With only 45 kcal per
100 millilitres, it appeals particularly to women and men who do not like
traditional beers. Aimed at a modern market, Zipfer Sparkling opened up
new occasions for beer consumption: as an aperitif or at festive occasions.
For traditional beer brands the consumption peak is during summer. Zipfer
Sparkling is mostly consumed during December and February.
The story of how Heineken is forging a strong position on the Eastern
Frontier is summarised best by the B-R-A-U mission: Brands for all
occasions and demands; Respect for the workforce and individuals in
general; Union of diverse, successful companies, and Ambition for
leadership and financial performance.
Putting best practices in place has helped to Improve the cost structure of
Heineken in Central and Eastern Europe
