040604 interbrew hungary - ab inbev...microsoft powerpoint - 040604 interbrew hungary.ppt created...
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HUNGARYHUNGARY
Gyula Bognár
2
Dreher SörgyárakSAB
Soproni SörgyárBrau Hungaria
Pécsi SerfőzdeOttakringer
Borsodi Sörgyár Interbrew
Dreher SörgyárakSAB
Martfűi SörgyárBrau Hungaria
Amstel SörgyárHeineken
Hungary
Interbrew -from regionalto national player
Territory: 93 th sqkmPopulation: 10 million
Very competitive market with 3 big players
3
Hungarian economy
0,0
50,0
100,0
150,0
200,0
250,0
300,0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Excha nge ra te (HUF/€)
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
%
Infla tion ra te (CPI)
-15,0
-10,0
-5,0
0,0
5,0
10,0
15,0
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Re a l incom e growth (%)
Excise duty
010002000300040005000
1998 1999 2000 2001 2002 2003 200405101520
HUF/hl €/hl
4
Hungarian Beer Market Evolution
Beer Market
6 000
6 500
7 000
7 500
8 000
96 97 98 99 00 01 02 03
65,0
70,0
75,0
80,0
Total volume Litre / capita
Packaging mix
0%
20%
40%
60%
80%
100%
2 000 2 001 2 002 2 003
Re turnable bottle KEG Can PET
Channel evolution
0 20 40 60 80 100
2003
1991
Orga nis e d Re ta il Unorga nis e d Re ta il On-tra de
5
ITW Hungary
Market Share % (on 12 months basis)
0
5
10
15
20
25
30
35
40
1998
1999
2000
2001
2002
2003
2004
Mar
ch
ITW Hungary
SAB
BRAU
Amstel
Pécs
Heineken
Volume thhl
1 5001 6001 7001 8001 9002 0002 1002 2002 3002 400
1998 1999 2000 2001 2002 2003
MS in packaging segments
23%
28%
33%
38%
43%
2000 2001 2002 2003
Returnable bottles Kegs / cistern Cans
CAGR:4,0%
6
NNS
Superior, Consistent Growth
EBIT
0 , 0 0
2 0 , 0 0
4 0 , 0 0
6 0 , 0 0
8 0 , 0 0
1 0 0 , 0 0
1 2 0 , 0 0
1 4 0 , 0 0
1998 1999 2000 2001 2002 2003 1998 1999 2000 2001 2002 2003
CAGR:20,6%
CAGR:29,5%
7
Focused brand portfolio
8
Borsodi Sör - regional rural brand �
nationwide respected brand
0
10
20
30
40
50
60
70
80
90
100
1996 1997 1998 1999 2000 2001 2002
East West Central
0
1
2
3
4
5
6
7
8
9
1996 1997 1998 1999 2000 2001 2002
Awerness Liking
First in NRW botttleFirst in canFirst in big bottleFirst in PET
Line extension:First non alcoholic, fist amber beer and first strong core
Borsodi family MS in CORE segment
39,0%
40,0%
41,0%
42,0%
43,0%
44,0%
45,0%
1998 1999 2000 2001 2002 2003
9
Global superpremium brands
Launch Stella Artois in 1998
Stella Artois N.A. in 2001
Beck’s in 2003, brewing in Hungary 2004
Stella Artois in embossed bottle & Q-pack in 2004
ITW MS in PREMIUM segment
0,0%
2,0%
4,0%
6,0%
8,0%
10,0%
12,0%
14,0%
16,0%
1997 1998 1999 2000 2001 2002 2003
10
Long term partnership program
Number of WHS (pcs )
0
20
40
60
80
100
120
2001 2003
Volume of WHS (thHL)
1 000
1 100
1 200
1 300
1 400
1 500
1 600
2001 2003
Wholesalers in the past:Loss makerBasic distributor onlyWeak knowledgeCompeting with each and other
Wholesaler after DIEXProfitable Professional
DIEXHelp the partner:
Improve profitability with increasing sales volumeBest practice sharingDevelop special integrated IT systemCOSERV- creating purchasing association
HL/WHS (thHL)
0
5
10
15
20
25
2001 2003
11
Cost saving and effectiveness
‘
Cost savings
0
2
4
6
8
10
12
14
16
18
20
1996 1997 1998 1999 2000 2001 2002 2003
Heat Losses Electricity Water
Overall productivity
00,5
11,5
22,5
33,5
1995 1996 1997 1998 1999 2000 2001 2002 2003th
hl/e
mpl
oyee
e
12
Key challenges in Hungary
� EU accession• New competitors with cheap products• Environmental law
� Three strong players on the beer market
� Unforseen quick changes in macroeconomy (inflation / devaluation/taxation)
� Modern retail expansion
� More expensive labour costs / energy costs