Spain The fine summer had a favourable effect on beer sales in Spain. Sales by our affiliate El Aguila S.A. also showed an increase, but the market share was still slightly under pressure. Thanks to the higher sales, combined with a considerable decline in financing charges, the earnings proved to be more favourable than we had expected. A substantial rationalization programme will be carried out at El Aguila in the years to come. In this connection four breweries will undergo considerable improvements and renewals, i.e. the establishments in Madrid, Zaragoza, Cordoba and Valencia. They will also take over the production of three breweries which are to be closed within the foreseeable future. The three in question are the obsolete production units at Alicante, Cartagena and Merida. The social consequences will be minimized. The restructuring and modernization programme calls for considerable investments in the technical and commercial field involving a sum of N.fl. 325 million in the years to come, to be financed locally. This will exert a temporary pressure on the earnings, but we are optimistic about their long-term development. The accession of Spain to the European Community will undoubtedly lead to a further internationalization of the Spanish market. This will not only be reflected in increased activities by foreign breweries, but also in a growing interest shown by the Spanish consumer in international beers. Since Heineken has already built up a position in Spain, our enterprise will certainly be able to benefit from this anticipated development. Sales of imported Heineken beer grew satisfactorily during the year under review. As from 1986 its distribution will be looked after by El Aguila. Italy Partly under the influence of the fine summer and autumn weather, beer sales in Italy showed a recovery compared with the previous year. This led to higher sales by our operating company Birra Dreher S.p.A., both of the Italian brands and of the Heineken beer brewed there. The market share further increased. Margins, too, showed a modest improvement. The investments in the breweries were again considerable. At Popoli the expansion to a capacity of 550.000 hectolitres was completed. A new bottling line for non-returnable bottles was taken into use, as well as new beer tanks. The new bottling line at Macomer became operational early in 1986. A considerable modernization programme was undertaken in the brewery at Massafra. The brewery in Genoa was closed at the end of the year under review. Sales of Amstel. which is brewed under licence by the Peroni group for the Italian market, lagged behind expec tations. Greece As in 1984 the Greek beer market showed a slight growth. Our subsidiary Athenian Brewery S.A., where both Heine ken and Amstel are brewed, achieved higher sales. The market share remained above 50% in 1985. The government authorities allowed a price increase in both March and September, as a result of which the pressure on margins was to some extent reduced. The labour relations in Athenian Brewery were satisfactory. At the establishment in Athens the packaging department was modernized; in the brewery at Thessalonika the storage facilities for finished product were extended. Towards the end of the year under review agreement was reached regarding the acquisition of the assets of the brewery and maltworks of Breweries of Greece S.A. at Patras. The brewery has a capacity of about 900,000 hectolitres and meets our requirements for production facilities in the longer term. Athenian Brewery will produce Amstel beer in the newly purchased brewery, whilst the production of Löwenbrau beer will be continued. The latter brand will be produced on a contract basis for Breweries of Greece S.A., which will itself continue to look after the marketing and distribution. Ireland Taking into account the still weak economy, our Irish operating company Murphy Brewery Ireland Ltd. devel oped reasonably. Both sales and market share showed an increase, mainly as a result of the higher sales of the Heineken brand in the increasing lager segment. This growth is expected to continue in the years to come. Murphy's Irish Stout was given an entirely new presentation and was also introduced in the United Kingdom. In accordance with the plans the extensions and renewals at the brewery in Cork were completed at the end of 1985.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1985 | | pagina 23