18
and N.B.M. in Birra Dreher was
completed by the end of 1988.
Once again substantial capital expenditures
were incurred in the breweries.
In Sardinia a start was made on the
expansion of the brewery at Cagliari in
view of the proposed closure of the
obsolete brewery at Macomer. This
proposal led to social unrest during the
year under review.
The modernization programme in the
establishment at Pedavena was
completed, whilst the renovation of the
bottling plant at Massafra is proceeding
according to plan. The extension of the
warehouses and cellars at Aosta was
completed.
The sales of our soft drinks company in
Sardinia showed a strong increase.
Greece
The beer market in Greece underwent
further growth, which was reinforced by
the continuing fine weather. Consequently
the sales of our subsidiary Athenian
Brewery S.A. again rose. The
government price restrictions are
gradually being reduced, as a result of
which the pressure on margins
decreased.
Sales of both Heineken and Amstel beer
showed a further growth. In the latter
part of the year Amstel bock beer was
introduced on the Greek market.
After a period of labour unrest at Patras
the good employee relations were
restored.
At the three breweries in Athens,
Thessalonika and Patras investments
took place relating to expansion,
replacement, renovation and quality
control. At Patras a new bottling line was
taken into operation.
Ireland
The decline in beer consumption came
to a halt during the year under review,
partly due to a slight improvement in the
economic situation. The lager segment
showed a further growth at the expense
of stout and ale. Our Irish operating
company Murphy Brewery Ireland Ltd.
nevertheless saw an increase in sales
of Murphy's Irish Stout. Heineken is now
the market leader in the lager segment.
During the year under review the Buckler
and Amstel brands were launched.
Murphy Brewery's earnings showed an
increase.
Other countries
In Great Britain there was a slight
increase in sales of the Heineken beer
marketed by our licensing partner
Whitbread Co. PLC, as a result of
which the substantial position in the lager
segment was maintained.
Sales of Murphy's Irish Stout did well. It
was agreed to give Whitbread a licence
for the production of this brand for the
British market.
Our affiliate Duncan, Gilbey Matheson
International Ltd. (D.G.M.) is responsible
for the co-ordination of spirits interests
outside the Netherlands. In 1988 D.G.M.
acquired a relatively small internationally
oriented trading firm in the field of spirits
and wine, thus broadening the basis of
its activities.
In Norway Heineken beer is produced
under licence by Frydenlund Ringnes
Bryggerier A.S. Sales of Heineken were
almost at the previous year's level. Partly
through the introduction of new
packagings it is expected that sales of
Heineken beer will gradually increase.
In Sweden sales of Amstel beer, brewed
under licence by A.B. Warby Bryggerier,
were under pressure, partly due to the
intense price competition. The Swedish
brewery market is characterized by
limited distribution possibilities in the
off-premise sector. This has its
repercussions on the sales of Amstel
and imported Heineken beer.
The sales of imported Heineken beer in
Switzerland showed a sharp increase.
This country is now one of our ten
biggest export markets.
