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. 14

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1995 | | pagina 22