17
Beer sales in Europe per country
(in millions of hectolitres)
6.6 The Netherlands
5.3 France
4.7 Spain
2.8 Italy
2.4 Greece
0.4 Ireland
3.0 Other countries
personnel the working week was reduced
to 38 hours.
In good consultation with the trade unions
a collective labour agreement was
concluded for 1987 and 1988 for various
groups of employees.
Up to and including 1989 agreements
were also reached on arrangements with
regard to transfer for organizational
reasons.
In anticipation of the closure of the brew
ery in Amsterdam a large number of
employees were transferred during the
year under review to other
establishments, mainly Zoeterwoude.
In 1987 a start was made on programmes
which are aimed at further increasing
quality awareness and improving service.
One of the steps taken to counteract
irresponsible use of alcohol during
working hours is the making of an
information film which has been shown
in all parts of the enterprise.
France
The French beer market showed a de
cline in 1987. This is a continuation of
the trend of previous years, which was
interrupted just once - in 1986 - as a
result of the fine summer weather.
Frangaise de Brasserie S.A., the
operating company of our affiliate
Sogebra S.A., experienced a slight
decrease in its market share, caused by
the fact that the product range was
reorganized. The important brands,
including Heineken, were able to improve
their position.
Despite the lower beer sales and the
costs of reorganizations, earnings again
showed a substantial improvement. This
was partly due to the positive effects of
restructuring and modernization
programmes, with which good progress
was again achieved during the year under
review. The investments made in the
production establishments were chiefly
aimed at improving quality and increasing
efficiency.
The reorganization of the sales com
panies, which has led to the setting-
up of Fleineken Pelforth S.N.C. and
Union de Brasseries S.N.C., was com
pleted. The distribution organization
France Boissons S.A. developed satis
factorily in a difficult market.
A further concentration of production is
proving to be necessary in view of the
declining beer market. In this context the
closure is foreseen of the brewery at
Mutzig in 1989 and the brewery at Drancy
in 1990. We are fully aware that these
closures are of drastic significance to the
respective regions, but here too efforts
will be made by retraining and
reassignment to offset the social
consequences as well as possible. The
breweries at Mons-en-Baroeul, Marseilles
and Schiltigheim will be modernized
where necessary.
As stated at the beginning of this report,
agreement has been reached in 1988
regarding the increase of our interest in
Sogebra from 51% to 100%.
We look forward with confidence to the
future of our activities in France.
Spain
Sales of the Spanish brewery group El
Aguila S.A., in which we have a 51.2%
interest, rose in line with the overall
market.
The decline in our market share was
halted. Within the renewed product range
the Adlerbrau and Heineken brands did
particularly well.
El Aguila has breweries at Valencia,
Madrid, Zaragoza and Cordoba. Once
again much attention was paid to
rationalization and modernization of
production.
Earnings were affected by higher distrib
ution and marketing costs, as well as by
higher personnel charges. These were
offset by rising sales and the effects of
measures to increase efficiency, so that
earnings were virtually maintained at the
previous year's level.
During the year under review a change
was made to distribution by third parties.
The change-over process proceeded
faster than expected.
