17 are being held with the works councils and trade unions on the ultimate form ot the proposed co-operation and restructuring and the social plan pertaining thereto. France in sales in favour of the Heineken, Buckler and Adlerbrau brands. El Aguila's own distribution activities were largely reorganized, which led to an improvement in the cost structure. El Aguila's earnings consequently showed a further increase. Beer sales in Europe per country (in millions of hectolitres) 6.5 The Netherlands 5.2 France 4.8 Spain 3.7 Italy 2.6 Greece 0.5 Ireland 3.2 Other countries The French beer market remained at the same level as the previous year. The restructuring in the brewing industry, which has already been in progress for several years, was continued. As previously announced, our interest in Sogebra S.A. was increased from 51% to 100%. Frangaise de Brasserie S.A., Sogebra's operating company, succeeded in maintaining its market share. Earnings improved, but they are not yet at the desired level. The product range was extended by the introduction of the low-alcohol beer Buckler. Sales of this product developed satisfactorily. The growth of the Heineken brand continued. During the year under review the modernization programmes were continued. The level of investments will also remain high in the next few years. Frangaise de Brasserie is aiming to minimize the social consequences of the proposed closures at Mutzig and Drancy. Amongst other things the social plan provides for retraining and reassignment, both within and outside the enterprise, of the personnel employed in these breweries. We regret the fact that during the year under review there was a degree of social unrest in the breweries. The distribution organization France Boissons S.A. succeeded in improving its market position, partly as a result of adjustments in the marketing policy. Spain The brewery group El Aguila S.A., in which we have a majority interest, was able to maintain its share in a market which showed a slight growth. The higher sales were accompanied by an improvement in margins through shifts The first phase of the programme for rationalization and modernization of production, which commenced in 1985, has in the meantime been completed. In the next few years, too, much capital expenditure will be incurred. The quality improvement achieved in recent years has benefited the image of the products. In 1988 Buckler was also launched on the Spanish market. Sales are developing better than expected. In the course of 1989 a start will be made with the importation of Guinness Stout. An improvement in the market position, together with the rationalization of production and a change in distribution, offer sufficient prospects to view the future trend of earnings with confidence. There was again a considerable rise in imports of Heineken beer into the Canary Islands. Italy The size of the Italian beer market declined slightly in 1988. Our operating company Birra Dreher S.p.A. was able to maintain its market share and earnings. Sales of Heineken beer showed an increase, but those of Amstel declined. The licensing agreement with Birra Peroni S.p.A. has been terminated and the production of Amstel beer will be taken over by Birra Dreher. Within the framework of a share exchange Birra Dreher's interest in Societa Internationale Birraria S.p.A. (S.I.B.) and Nuova Birra Messina S.p.A. (N.B.M.) rose to 100%. In connection with this our interest in Birra Dreher was reduced to 85.2%. Both companies developed satisfactorily during the year under review; the integration of S.I.B.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1988 | | pagina 29