Making great beer is something
we are proud of and a major
attribute of Heineken's
success. Understanding the
behaviour and changing
dynamics of our shoppers
and drinkers is therefore
a never-ending challenge.
Some facts and figures
Summer 2 0 0 7
Indeed, keeping abreast of changes in the market and understanding what
the consumers of tomorrow will value is vital for our future and the
developments and innovations we bring to market. As an introduction to
what is happening in our market place around the globe, World of Heineken
takes a brief look at the headline consumer trends in Western Europe.
The population of Western Europe, a more established market, is ageing
rapidly, according to the latest AC Nielsen What's Hot Around the Globe
report. Some estimates are that Western Europe will have 37 million fewer
people than today by 2050*.
Changing populations affect our consumption of food and beverages, says
the report. As populations age in developed markets, consumers become
more concerned with eating healthier - losing a few pounds, reducing their
cholesterol and increasing their fibre.
In markets with ageing populations, consumers are using food and
beverages to maintain their health and youthfulness, the report continues.
In line with this, Western European consumers are looking for food and
beverages that are healthier, that make their lives easier, and are good
value.
Year over year growth of food and beverage products in the region remains
at 3 per cent. This growth was similar to that of the US (4 per cent) and Asia
Pacific (4 per cent). By contrast, emerging economies showed double-digit
growth in food and beverages.
Western Europe had the largest share of food and beverage value sales
globally in mid-2005 - 2006: 43 per cent.
The two fastest growing product areas in the region were: fruit and
vegetables (5 per cent) and meats/meat substitutes, fish eggs (5 per cent).
Alcoholic beverages grew by one per cent in the same period.
Globally, the alcoholic beverages category was dominated by the size and
actual value growth of beer. Increases around the world were fuelled by
several factors, including a focus in some markets on more premium or
craft beers. Some markets also saw the introduction of "healthy" (zero-
alcohol) beer.
Interestingly, alcoholic cider grew strongly, and indeed was one of the
fastest-growing categories globally. "The growth seems to be coming from
Great Britain and Ireland, as well as from Nordic markets including Finland
and Norway, with additional growth coming from Latvia and Lithuania," the
AC Nielsen report says.
Some regions saw strong growth in pre-mixed alcoholic drinks.
Globally, however, there was a decline, due to the fall in the other
markets, including Europe, which was greater.
In addition to the growth of the new ciders, another likely
contributor to the decline of the pre-mixed alcoholic drinks category
are the restrictions on these beverages, including taxes and
advertising restrictions, the report concludes.
Growth by Product Area
Europe
(US million)
Sauces Condiments
Cooking Basics
Desserts, Cakes Pastries
Non-Sweet Carbohydrates
Ready-to-Eat Meals
Fruit Vegetables
Meat/Meat Substitutes, Fish, Eggs
Dairy
Confectionery, Sweet Biscuits, Snacks
Non-Alcoholic Beverages
Alcoholic Beverages
Baby Food
3%
4%
I 1%
2%
3%
5%
3%
l Mid-2005
l Mid-2006
5%
2%
20,000
40,000
4%
1] 1%
60,000
80,000 100,000
as well as Czech Republic, Poland and Slovakia
The strategists in the beer business analyse these trends carefully
upon their implications for our industry. But what implications do
they have for us exactly? Thinking about this carefully will help us all
to shape up for the future. And that's already a positive first step
that Heineken has taken.
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