25
rose slightly. In Surabaya the new cellar
complex was taken into operation.
Malayan Breweries Ltd., with brewery
interests in Singapore, Malaysia, Papua
New Guinea and New Zealand, once
again achieved better earnings. In
particular, the earnings of South Pacific
Holdings in Papua New Guinea
contributed to this favourable
development.
After years of no growth at all, there was
a slight expansion in the beer market in
Singapore, with Malayan Breweries being
able to strengthen its market position.
The construction of the new brewery,
which will replace two existing breweries
in 1989, is proceeding according to plan.
In Malaysia there was a slight growth
in the beer market, but Malayan
Breweries' share was under pressure
despite higher sales. The Tiger brand,
introduced in 1987, is doing well. In
November the intention was announced
to incorporate Malayan Breweries
Malaysia and Guinness Malaysia in a
joint venture. It is expected that the
position in this market can thereby be
strengthened.
In Papua New Guinea the course of
affairs at South Pacific Brewery Ltd. was
satisfactory. Higher sales and better
earnings were achieved in the beer and
soft drinks sector.
Beer sales in Asia/Australia/Oceania
(in millions of hectolitres)
2.3
2.4
2.4
2.4
2.5
1984 1985 1986 1987 1988
In New Caledonia the sales of beer and
soft drinks by Grande Brasserie de
Nouvelle-Calédonie S.A. again showed
an increase, but earnings were somewhat
under pressure due to increased costs.
The renovation work in the brewery has
been virtually completed; a new can
filling line was also taken into operation.
In collaboration with Fraser Neave
Ltd., our partner in Singapore, and the
Chia Tai Group, established in Hong
Kong, Heineken is participating in the
Mila brewery at Shanghai in the People's
Republic of China. Heineken Technisch
Beheer B.V. is rendering assistance to
Mila and will act as a consultant in the
renovation of the brewery.
In Tahiti sales of the Heineken beer
produced under licence by Brasserie de
Tahiti S.A. developed satisfactorily.
In Japan the relationships in the beer
market have been considerably changed
because of the introduction of a new
type of beer, known as 'dry beer'. Partly
as a result of this, sales of the Heineken
beer produced under licence by Kirin
Brewery Co. Ltd. declined.
Exports of Heineken beer to Australia
showed a considerable increase.
Heineken was able to maintain its leading
position in the import segment.
Exports of Heineken beer to the Far East
rose considerably. In Hong Kong we
succeeded in further strengthening our
position. Since the liberalization the
market in Taiwan has been abundantly
supplied with imported beer. Thanks to
a good distribution the Heineken brand
was well able to maintain its position.
Exports of beer to the Middle East
remained at the previous year's level,
despite the strong position of the guilder
and the increasing competition.
Our minority interest in Jordan, General
Investment Co. Ltd., succeeded in
maintaining the sales of Amstel beer at
almost the same level as in 1987.
At Brasserie Almaza S.A., in Lebanon,
sales remained virtually stable, despite
the political and economic developments.
Prospects
The expansion and strengthening of the
enterprise in Europe will be continued,
amongst other things by the completion
of the rationalization in our breweries.
In addition, efforts are being made to
strengthen our prominent position within
the European market. The structurally
improved spread of the enterprise's
activities within this region is important.
A response will be made to the further
segmentation of the beer markets by the