Africa and the Middle East



 
 
Heineken's presence in Africa is a long-standing one. The increasing worldwide demand for, and rising prices of African minerals continues to drive economic development and improve purchasing power, making beer more affordable. Foreign investment in the region continues to grow and the expansion in infrastructure is opening up new markets. In a number of countries, the emergence of a distinct middle class has increased the demand for international premium beers. The popularity of the brands and of Heineken beer in particular, is rapidly growing.  

2007 key figures
Revenue €m
1,416
EBIT (beia) €m
329
Heineken brand volume
1.5 million hectolitres
Consolidated beer volume
15.7 million hectolitres

Consolidated beer volume of the Heineken group grew 18% to 15.7 million hectolitres driven by improved economic conditions and increased stability in the region. In Nigeria and the Democratic Republic of Congo (DRC) particularly, the beer market expanded rapidly and these two countries accounted for a substantial part of the regional volume growth. Bralima, our operating company in the DRC gained market share driven by growth of the Primus brand. In Nigeria, the market share of the Heineken Group increased 2.6%.
Across the region, volume of the Heineken brand grew almost 40% to 1.6 million hectolitres. Volume growth was particularly strong in Nigeria, South Africa and the Middle East. Volume of Amstel in the region, excluding South Africa, grew 8%.
During the year, Heineken expanded several agricultural projects in the region with the aim of increasing the local supply of raw materials and reducing dependence on high-priced imported malt and barley. Heineken is growing part of its own grain requirements in Nigeria, Ghana, Sierra Leone, Rwanda and Egypt, whilst similar projects are under way in Burundi and the DRC.
 
Revenue in the region grew 20%, driven by strong volumes in particular in Nigeria, South Africa and Central Africa, and price and sale mix improvement, despite an adverse effect of 6% as a result of weakening of local currencies against the euro. EBIT (beia) increased 41%.
 
Heineken is expanding its presence throughout Africa and the Middle East. Breweries are under construction in the Democratic Republic of Congo and Tunisia, whilst preparations are underway for the construction of a brewery in South Africa. At the start of 2008, Heineken acquired the second largest brewer in Algeria.