18 regarding this intention. In connection with the proposed closure, which will not lead to dismissals, a social plan will be drawn up. Alternative proposals for the future of the brewery site are being con sidered. The production of the Amsterdam brewery will be transferred to the breweries at 's-Hertogenbosch and Zoeterwoude. A new bottling line will be installed for that purpose in the latter brewery. France The volume of the French beer market remained virtually the same during the year under review, as a result of the good summer weather. In view of this market situation, it is gratifying that nearly all the brands sold by Sogebra S.A. achieved higher sales in 1986. Within the product-range the Heineken brand showed the strongest growth. Despite the structurally difficult develop ment of the beer market we foresee good possibilities for our products in France. The higher sales and the first effects of the restructuring have led to a substantial improvement in earnings in 1986. We expect this trend to continue. The restructuring and modernization pro gramme started in the previous year was vigorously pursued. In the meantime four unprofitable production units (three brew eries and one bottling plant) have been closed according to plan. The consequen ces for the personnel have been largely smoothed by re-training and outplace ment. The other five breweries, i.e. those at Drancy, Marseilles, Mons-en-Baroeul, Mutzig and Schiltigheim, are being brought up to the desired technical stan dard. Good progress was made during the year under review with the modernization programme. It is expected that this pro gramme will be completed in 1988. The legal structure of our French interests has also been adapted in the meantime. Sogebra S.A., in which we have a 51% interest, is now the holding company of a new company, Frangaise de Brasserie S.A. This new operating company super vises all the production activities and also the marketing companies Heineken Pelforth SNC and Union de Brasseries SNC, as well as the distribution organiz ation France Boissons S.A. Spain In a slightly larger total market the sales of our subsidiary El Aguila S.A., in which we now hold a majority interest, remained approximately the same. The company kept apart as regards price competition. In order to improve the product-range, a number of older beer brands were taken off the market and two new brands were introduced, Aguila Pilsener and Adlerbrau. In addition, the distribution of Heineken beer was undertaken as from January 1. 1986. Imports of Heineken beer were more than doubled during the year under review. There was a marked impulse from the considerable fall in import levies for beer as a result of Spain's entry into the European Commu nity. The alterations to the product-range and the addition of the Heineken brand have significantly strengthened El Aguila's market position. In accordance with expectations, earnings were under pressure during the year under review, partly as a result of the rationalization measures in progress. Three obsolete breweries were closed during the year. The social consequences of these closures have been offset as well as possible. A start was also made on the improvement and renewal of the breweries in Madrid, Zaragoza, Cordoba and Valencia. We take an optimistic view of the effects of the restructuring and modernization programme, in which fur ther substantial amounts will be invested in the years to come. Italy In 1986 beer sales in Italy again showed an upward trend. The good weather du ring the summer and autumn played a

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1986 | | pagina 19