Western Europe



 
 
Heineken is Western Europe’s leading brewer and the region is the biggest contributor to Group profitability thanks to the strong market positions and excellent brand portfolio. Heineken is Europe’s number one beer.

Heineken has market leadership positions in the Netherlands, UK, Spain and Italy and is the number two player in France, Ireland and Switzerland. Heineken and in some cases Amstel are brewed under licence or imported to several Western European markets.

2009 key figures
Revenue €m
8,432
EBIT (beia) €m
792
Heineken brand volume (ex.Netherlands)
7.5 million hectolitres
Group beer volume
47.4 million hectolitres
Consolidated beer volume 47.2 million hectolitres
Consolidated cider volume 4.8 million hectolitres

Western Europe posted a solid financial performance despite challenging market conditions. Growing revenues per hectolitre, Total Cost Management savings (TCM) and the improvement of the former Scottish & Newcastle operations drove the EBIT (beia) growth. 
 
Consolidated beer volume grew 6.6%, due to the first time consolidation effect of the new operations in the UK, Ireland, Finland, Portugal, Belgium and Switzerland.
 
Organically, consolidated beer volume was 5.0% lower. The effect of the recession and the increase in excise duties on volumes outweighed the effect of good summer weather in a number of markets. In France, consolidated beer volume increased.
 
Volume of the Heineken brand in the premium segment was 2.1% lower. The growth recorded in France and Portugal could not compensate for market softness in Spain, Italy and Ireland.
 
Organically, revenue was broadly stable despite the lower volumes, especially in the on-trade segment. On average, mid-single digit price increases and an improvement in the sales mix played a key role. Reported revenue was 10% higher.
 
EBIT (beia) was impacted by the negative effect of first time consolidations and currency depreciation. Organically, EBIT (beia) benefited from more efficient marketing spend and personnel costs and an improved sales mix. The €184 million synergies forecast for all of Scottish & Newcastle have now been realised in full. Western Europe represented 38% of the Group’s consolidated EBIT (beia).