19
significant role. This had a positive effect
on the sales of our operating company
Birra Dreher S.p.A., which also achieved
a further increase in its market share.
Both the local brands and the Heineken
beer brewed at Dreher showed a rise in
sales. Margins also improved.
During the year under review Dreher
increased to 70% its interest in Sarde
Produzioni Agricole Industriali S.p.A. at
Cagliari, Sardinia, in which company a
minority interest was already held.
S.P.A.I. has a brewery in Sardinia with
a capacity of 300,000 hectolitres, which
markets beer under the Ichnusa brand.
Considerable investments were again
made in the Dreher breweries during
1986. In the establishments at Popoli,
Pedavena and Massafra the storage tank
capacity was extended. The keg line at
Popoli was fully automated. At Massafra
the modernization programme was con
tinued.
The Amstel beer brewed under licence by
the Peroni group was unable to benefit
sufficiently from the market growth in Italy.
Greece
Particularly due to the favourable
weather, the Greek beer market showed
an increase.
The sales of our subsidiary Athenian
Brewery S.A., where both Heineken and
Amstel are brewed, were also higher.
For the first time more than 2 million
hectolitres were produced in one year.
The pressure on the margin for our prod
ucts was reduced as a result of a grad
ual relaxation of the price restrictions in
Greece.
In the breweries in Athens and Thessa
loniki investments were made in 1986 in
extensions, replacements and reno
vations. In addition, much attention was
paid to quality control.
Efficiency will be increased in the Patras
brewery acquired in the previous year,
so that it will reach the level of our other
two breweries in Greece.
Ireland
In a declining beer market our Irish ope
rating company Murphy Brewery Ireland
Ltd. managed to achieve higher sales,
both with lager and with stout, resulting
in an improved market share. The
Heineken brand, in particular, again
developed favourably. This growth is
expected to continue in the years to
come. The brewing capacity will be ex
panded in 1987.
Other countries
In Great Britain the market for lager con
tinues to grow steadily. Heineken beer,
which is brewed under licence by
Whitbread Co. PLC, retained its share
of the market, which is characterized by
strong competition. Within the framework
of the renewal of the licensing contract
Heineken acquired a 1 interest in
Whitbread's share capital.
Following its introduction to the market
in England Murphy's Irish Stout, which
is produced by our Irish brewery, did well.
Duncan, Gilbey Matheson, our sub
sidiary established in London, co-ordina
tes the activities of our spirits interests
outside the Netherlands. Overall there
was a stabilization in the course of affairs.
Much attention was paid to analysing
expansion possibilities of the international
activities.
In Sweden sales of locally produced
Amstel beer were maintained, whilst
sales of imported Heineken beer develop
ed satisfactorily.
In Norway there was a slight fall in sales
of Heineken.
For the first time Heineken beer was
imported into Finland; the experience
hitherto is positive.
Sales of imported Heineken beer in Swit
zerland proceeded favourably. The chan
ge-over to nation-wide distribution has
made a noticeable contribution to this.
In Portugal the market was opened to
imported beer on January 1, 1986, as a