Operational review continued
Innovation, research and development
Innovation continues to contribute considerably to top-line growth. In 2007, volume growth from innovation grew more than 80% and total volume from innovation passed 1.2 million hectolitres. In its first full year of sales, the growth of Heineken Premium Light was fuelled by strong repeat purchase, and the expansion of packaging choices for consumers with the launch of a ‘slim’ can and a 5-litre DraughtKeg.
2007 was another very successful year for DraughtKeg. This unique 5-litre ‘go anywhere’ draught system provides an exciting beer experience to share with friends. Driven by the strong volume growth, in 2007 the focus was on up-scaling the DraughtKeg supply chain and rolling out systems to more markets. As a result, DraughtKeg is now selling in 94 markets.
Since the launch of BeerTender, the genuine home draught beer experience, more than 300,000 appliances have been sold worldwide. In 2007, Heineken successfully combined DraughtKeg and BeerTender innovations with a unique one-way DraughtKeg for BeerTender. Based on the positive results in France, this innovation was launched in Greece and piloted in the USA. In 2008, other countries will follow. Innovations such as DraughtKeg and BeerTender, clearly differentiate Heineken from our competitors.
Five years after its introduction, the David draught beer system aimed at lower volume on-trade outlets, is available in 85 markets. During the year, we also made good progress on the mobile Xtreme Draught concept, the next generation of the David system. Xtreme Draught uses either the new ‘Ten Can’ (10-litre draught keg) or the standard 20-litre David keg, making it flexible and easy to use. It also means optimal freshness for the beer and a better experience for both customer and consumer. The new system is now available in 25 countries around the world.
Finding new and faster ways to grow volume is the key rationale behind the roll-out of our Extra Cold programme which adds value to the Heineken brand equity and which is now available in more than 100 markets.
As we move into 2008, all these programmes will continue to be driven at a market level to address specific consumer needs or to ensure we are able to offer the consumer a quality Heineken brand experience across the spectrum of consumer drinking occasions.