Countries

Nigeria

Consolidated beer volume 9.8 million hectolitres
Market share 67.1 per cent
Market position 1

Heineken operates in Nigeria through controlling stakes in Nigerian Breweries and Consolidated Breweries of Nigeria, and enjoys an estimated market share of 67 per cent. Combined volume grew 17 per cent.

Revenue and EBIT (beia) grew in excess of 30 per cent, thanks to the combination of higher volume, an average 6.5 per cent price increase and the positive effect of cost control. Volumes of Star and Gulder in the mainstream segment experienced double-digit growth and the Heineken brand grew 60 per cent. Higher volumes were driven in part by the introduction of cans for several brands, and the introduction of new packaging for Amstel Malta and Legend. Nigerian Breweries installed a second canning line and can introductions for other brands are under way.

The introduction of Fayrouz, a malt-based soft drink, is also proceeding according to plan, with total sales of 180,000 hectolitres (+40 per cent).

Egypt

Consolidated beer volume 1.2 million hectolitres
Market share 92.7 per cent
Market position 1

The beer market showed another year of strong growth, increasing 8 per cent, driven by a growing tourist sector. Al Ahram performed well, significantly increasing EBIT (beia), driven by higher beer volumes, better pricing and rigorous cost cutting.

The Heineken brand grew 28 per cent, whilst the Sakara brand, which is particularly strong in tourist areas, also reported good growth. The national mainstream brand, Stella, developed well after its earlier re-launch.

South Africa

In South Africa, Heineken operates through joint ventures with Diageo and Namibian Breweries, that offer a range of beers, ciders and ready-to-drink brands. Construction of the 3 million hectolitre brewery near Johannesburg is on schedule, and will be operational towards the end of 2009.

Group beer volume continued to grow strongly reaching 1.7 million hectolitres. Volume of imported Amstel met its ambitious target and is now selling 1.2 million hectolitres. The strong brand equity, supported by a further increase in distribution and intensive commercial support drove this performance. Heineken brand volume grew organically by more than 40 per cent. Currently, Amstel is sold in cans and one-way bottles imported from The Netherlands. Due to high transportation costs and the weak rand, profit is negative at this stage. However, it is expected to reverse once local brewing commences.

Online Information