REPORT OF THE BOARD OF DIRECTORS TO THE SHAREHOLDERS
It is our pleasure to submit to you herewith the Annual Report of the concern,
together with the relevant annual accounts, for the financial year 1968/1969. You
will be receiving these documents at a later date than was customary in the past few
years. This is due to the fact that the consolidation of Amstel Brouwerij N.V. and
Vrumona N.V. within the framework of the concern has entailed a great deal of
additional work.
The past financial year was marked by a period of integration and reorganization.
The incorporation of Amstel Brouwerij N.V. and Vrumona N.V. in the Heineken
group prompted the Board of Directors to seek the advice of the internationally
known bureau of management consultants, McKinsey Company, Inc. The
conclusion reached in this advice was that it would be conducive to the efficiency
and vigour of the Heineken group if the existing horizontal structure of a holding
company as parent company, with various operating companies as subsidiaries,
were to be changed to a vertical construction, in which the fields of activity of the
concern would be concentrated functionally in divisions under the single manage
ment of a Member of the Board of Directors. In consultation with the Supervisory
Council we decided to follow this advice. The comprehensive and therefore drastic
reorganization along the above lines has in the meantime taken place. All this has
made heavy demands on numerous members of the staff. It is certainly appropriate
here to express our gratitude to all those who have contributed to the successful
implementation.
In its recommendations the Supervisory Council has mentioned the resignation of
Mr. C. A. Klaasse as a Member of the Company's Supervisory Council. The Board
of Directors deeply regrets that consequently it will no longer be able to benefit
from his great knowledge of financial matters.
Mr. J. van der Werf, who has held various posts in the Company over a period of
20 years, was appointed a Member of the Board of Directors by an Extraordinary
General Meeting of Shareholders held on July 11, 1969.
During the financial year a start was made on the harmonization of the conditions
of employment in Heineken and Amstel.
The staff councils at our various establishments were called together on several
occasions, in addition to the customary meetings, in order to be informed about the
changes to be introduced in the organization.
The reorganization was usually also a feature of the normal periodic meetings of the
councils.
Boilerhouse of the Heineken brewery, Amsterdam
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