Regional Review continued
Africa and the Middle East: Countries
Nigeria
| Consolidated beer volume | 7.1 million hectolitres |
| Market share | 64.6 per cent |
| Market position | 1 |
The economic growth in the country is very strong, driven in part by the increase of oil prices during the last two years. As a result, consumption trends are on the rise and the beer industry is benefiting.
Volumes of Nigerian Breweries soared by more than 11 per cent, back on track after large price increases implemented in late 2004. All major brands with the exception of Gulder® posted double-digit growth, with Amstel up by 56 per cent, and Star, our biggest mainstream brand, exceeding 3 million hectolitres. Heineken brand performance was also brilliant, up almost 50 per cent.
Revenues at Nigerian Breweries surged at almost double-digit rates, driven by strong volumes. EBIT improved for the second year in a row. This result was also achieved thanks to savings in variable costs and the positive currency contribution, as Naira was appreciated against the Euro.
Trends were equally positive at Consolidated Breweries of Nigeria, which recorded 32 per cent growth in volumes and an increase in EBIT and which relaunched the “33”® and Hi-malt® brands.
To meet demand
Heineken produces the malt-based adult soft drink Fayrouz. Fayrouz differs from other soft drinks in that its production avoids fermentation, so alcohol is never produced.
Egypt
| Consolidated beer volume | 1.1 million hectolitres |
| Market share | 95.9 per cent |
| Market position | 1 |
The business in Egypt was affected by the political situation, and lower tourist flows. In this difficult context, Al-Ahram managed to increase its beer volumes by almost 6 per cent and its soft drink volumes by 7.3 per cent. The Heineken brand grew well from a low base.
In 2006, a major restructuring took place throughout the company.
Restructuring costs affected EBIT, which was lower than last year. The volume of Fayrouz® was lower as a result of 25 per cent price increase, but the brand developed well in its export markets.
The brand was introduced in Nigeria, Morocco, the United Arab Emirates and Saudi Arabia, and further roll-outs are planned.
