Central and Eastern Europe is Heineken’s largest region by volume. The business is benefiting from integration of acquired breweries and the outcome of portfolio optimisation. The Heineken brand is increasing its popularity.
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2009 key figures
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Revenue €m
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3,200
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EBIT (beia) €m
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389
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Heineken brand volume
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2.5 million hectolitres
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Group beer volumes
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55.1 million hectolitres
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Consolidated beer volumes
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46.1 million hectolitres
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The impact of the recession, higher prices and increases in excise duties affected all key beer markets across the region, reversing the growth trend of the last few years.
EBIT (beia) grew organically thanks to strong cost control especially in Russia and the Czech Republic. Total Cost Management programme progressed at pace, with the closure of 4 breweries and 4 malteries. Reported EBIT (beia) was lower, largely driven by the strong devaluations of the zloty and the rouble. The cumulative translation and transaction effect of weaker currencies led to a €119 million reduction in EBIT (of which €39 million was translation).
Beer volume in the region was lower, also affected by the decision to focus on profitable brands and pack types and rationalising underperforming SKU’s in Russia.
Volume of the Heineken brand was 9.3% lower, due to consumers shifting toward cheaper beers and low-priced vodka. Together, Russia and Poland accounted for more than half of the region’s decrease. In Austria and Serbia, the brand grew, increasing its market share.
Organically, revenue decreased slightly as better prices could only partly offset soft volumes and the unfavourable shift in sales mix towards less profitable channels and packages. |