Heinekens
FLESSENBIER
H.R Heineken
23
AMSTERDAM - ROTTERDAM
HEINEKEN
EXPORT STOUT
The construction of the fifth brewery at
Porto Alegre was completed.
In Argentina, Paraguay and Uruguay we
participate in several breweries through
a minority interest in Quilmes
International (Bermuda) Ltd.
In Argentina the construction of the new
brewery at Corrientes was completed
towards the end of the year. Total sales
were below the 1987 level. In Uruguay
beer sales declined, whilst in Paraguay
sales increased.
In March locally brewed Heineken beer
was introduced in Bolivia by Cerveceria
Boliviana del Oriente S.A., of Santa Cruz.
In Mexico the frontiers have recently
been opened again for imported beer.
Heineken beer has been reintroduced
to this market.
In Surinam the social and economic
situation continued to be alarming. Sales
by Surinaamse Brouwerij N.V. further
declined as a result of a reduced
allocation of import licences for raw
materials, packaging materials and spare
parts. Consequently it was not possible
to meet market demand fully.
Africa
In the African region our activities are
aimed at local production of beer and soft
drinks, production under licence, technical
management and imports of beer produced
by us in the Netherlands. The enterprise
has a brewery in the People's Republic of
Congo, a bottle factory in Zaire and has
interests in breweries in Zaire, Rwanda,
Burundi, Réunion. Morocco, Angola,
Cameroon, Nigeria, Sierra Leone, Ghana
and Chad. Furthermore, the Group is
engaged in agricultural and agri-business
activities related to the brewing industry.
In November 1988 Mr. J.M. Reckinger,
general manager of Brasserie de
Brazzaville S.A. in the People's Republic
of Congo, lost his life tragically whilst
performing his work. In him we have lost
a skilled and devoted employee whose
dedication we shall always remember
with great respect.
During the year under review the difficult
financial and economic situation in many
African countries continuea. In particular,
the size of the foreign debts constitutes
a big problem. The import restrictions
for raw materials, equipment and spare
parts were intensified. The decline in
purchasing power continued, which in
several important markets had a negative
effect on total beer consumption.
As a result of these developments
imports of Heineken beer declined. Sales
by our affiliates, however, showed an
upward trend.
In Zaire sales and earnings of Brasseries,
Limonaderies et Malteries du Zaïre
'Bralima' S.A.R.L. were under pressure
as a result of keen competition in a
sluggish beer market, mainly in the
Kinshasa region. Sales of soft drinks
again showed a sharp increase.
The modernized brewery at Kinshasa
was officially commissioned in March. A
new packaging was introduced for the
Primus brand; in the premium segment
Mützig was launched. The investment
programme in the other breweries and
soft drink factories of the Bralima group
is progressing less rapidly than expected.
Many difficulties are being encountered
in the obtaining of foreign exchange for
the import of the necessary equipment.
Sales by our bottle factory Bouteillerie
de Kinshasa 'Boukin' S.A.R.L. rose
considerably and satisfactory earnings
were achieved.
Brasseries et Limonaderies du Burundi
'Brarudi' S.A.R.L. in Burundi succeeded
in increasing the sales of both Primus
and Amstel. Earnings were lower as a
result of an increase in the excise duty
on beer, which could not be passed on
in the selling price. The capacity of the
storage cellars was extended. The use
of local raw materials in the company's
brewing process is increasing. In order
to safeguard the availability of packaging,
a local crate factory was acquired.
