In Greece there was a considerable increase in beer consumption during the
year under review.
As market leader Athenian Brewery S.A. was able to benefit substantially from
this trend. Sales of Amstel beer rose by more than the national average.
The financial results of this participation were by all means satisfactory.
In mid-1977 there was an increase in share capital, in which connection our
holding was slightly enlarged.
in millions of hectolitres
1
0
72/73 73/74 74/75 75/76 76/77
Beer sales Europe
The position of the brewing industry in Italy was again affected in the past finan
cial year by the difficult economic situation, as well as by the keen price com
petition as a result of the continuing overcapacity in this sector.
The sales of the Dreher group, too, suffered the repercussions of this.
The market share of the local brands was not entirely maintained.
Sales of locally brewed Heineken beer showed a favourable trend. The trading
profit of the group was still negative, though significantly less so than in the
previous year.
We expect this improvement to continue in the period ahead, as a result of the
reorganization and a more efficient approach to marketing and distribution.
The financing structure was considerably improved by the fact that interest-
bearing debts were replaced by shareholders' equity. Our partner Whitbread
Co. Ltd. did not participate in the associated increase in share capital.
During the year under review we also acquired shares in the Dreher group still
outstanding with the original owners, in return for cash payment. Our holding
is now 90%.
Sales of Heineken beer brewed by Whitbread Co. Ltd. in Britain again showed
an increase.
The leading position of Heineken in the lager market was maintained, thanks
especially to Whitbread's great commercial efforts.
WESTERN HEMISPHERE
Sales of Heineken beer produced by Falken Bryggeri AB in Sweden declined.
At the end of the year under review Falken Bryggeri AB was taken over by the
Swedish Pripps concern, which comprises inter alia Sweden's biggest brewery
group.
As a result of this development we have terminated the local production of
Heineken beer at this brewery in Sweden.
In Norway sales of Heineken beer produced by Arendals Bryggeri A/S at
Arendal and Hansa Bryggeri A/S at Bergen were practically at the same level
as the previous year.
In September 1977 agreement was reached with James J. Murphy and Co.
Ltd., of Cork. Irish Republic, on local production of Heineken beer there.
It is expected that this beer will be put on the market in the course of 1978.
In the United States Heineken further strengthened its position. Sales were
nearly 30% higher than in the previous year and reached a volume of over
1.2 million hectolitres. The Heineken market share in the segment of imported
beers rose from 38% to 41%.
It may be noted in this connection that the remaining 59% is divided over a
large number of exporting countries and an even larger number of brands.
Recently Heineken beer in cans was launched in the United States, particularly
with a view to the possibilities in the 'leisure' markets.
Approximately 9% of Heineken exports to the United States is at present in
barrels.
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