signed with Interbrew regarding the purchase by Heineken
Italia of Birra Moretti S.p.A., the third largest Italian brewer.
In France, in February 1996 Heineken acquired a 54.4%
interest in the Fischer Group (including Société Adelshoffen,
which is 72.6% owned by the Fischer Group), established in
Alsace. In addition, a 66% interest was acquired in the Saint-
Arnould Group, a beer brewer, wine producer and distributor
in Northern France. Heineken's total turnover will grow by
more than one billion guilders through these acquisitions.
Consent has still to be obtained from the authorities
concerned for these transactions.
Our expansion in the Far East is making steady progress.
During the year under review the Thai Asia Pacific Brewery
became operational in Thailand. The construction of the
breweries on the Chinese island of Hainan, in Myanmar and
in Cambodia is proceeding according to plan.
Beer
Soft drinks
Spirits and wine
Other income
Net turnover
in billions of guilders
Strategy
Heineken wishes to further expand its prominent position in
the world beer market, on the one hand by means of its
corporate brands Heineken, Amstel, Buckler and Murphy's
Irish Stout, which are marketed worldwide, and on the other
by selling national and regional brands.
We make the highest quality demands on both our products
and the overall conduct of the business.
Nearly all our European breweries have now been certified on
the basis of the ISO 9002 standard. Our quality awareness
goes beyond that, however, and has grown into a total quality
concept which also comprises logistics, marketing, finance
and distribution. This is reflected, amongst other things, in a
consistent effort to respond to the needs of our customers,
with the aim of obtaining and/or retaining the position of
preferred supplier.
Further progress has been made on the signing of long-term
contracts with suppliers in the field of raw material purchases.
In our view, the closer relationships provide better
opportunities to obtain a constant flow of raw materials of the
quality which we desire.
Geographical breakdown of the
sales of beer brewed under the
supervision of Heineken
in thousands of hectolitres
1995
percentage
1994 increase
Europe
31,716
30,047
5.6
Western Hemisphere
16,462
15,205
8.3
Africa
8,135
8,006
1.6
Asia Pacific
7,984
7,120
12.1
64,297
60,378
6.5
In order to remain competitive, we must produce efficiently
everywhere at the lowest possible cost, while maintaining our
high quality standards. This cost effectiveness strategy is
increasingly being put into practice. Most of our breweries
have achieved cost reductions through investments in more
efficient production assets, maximum utilization of capacity,
logistical improvements, savings on purchases, and above all
through the commitment and involvement of our employees.
In the years ahead this trend will continue. These aspects
accordingly play a vital role in our research and development
activities, in management development and in our training
courses and programmes.
In canvassing the world beer market a distinction is made
according to various market areas.
In the West European markets the organic growth
possibilities are limited and there is great competition. In
Central and Eastern Europe there are big opportunities for
our Company. We shall go on strengthening our position in
these areas by further growth, also through acquisitions.
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