The organizational development programme 'People Make
Heineken' made good progress. An intensive training and
redeployment project has commenced for the middle
management staff who have become surplus to requirements.
During the past year preparations were made to arrive at
flexibilization of part of the terms of employment for senior
and middle management staff.
In the soft drinks market, which once again increased, price
competition was very keen, particularly on the part of cheap
brands. Vrumona's market share was under pressure, as were
earnings.
In 1995, 7UP Ice-cola and Orangina were successfully
introduced, as well as the newly licensed brand Gatorade.
A licensing agreement was also signed for the Schweppes
and Dr. Pepper brands for the Dutch market.
7,157
France
The French organization Brasseries Heineken has breweries
in Marseilles, Mons-en-Baroeul and Schiltigheim. In France,
amongst others, the brands Heineken, Amstel, Buckler,
Murphy's Irish Stout, '33' Export, Pelforth, George Killian's
and Mützig are marketed.
6000
5500
4500
4000
3500
3000
2500
The beer market in France declined slightly. The premium
segment experienced a decline, too. Within this segment the
sales of the Heineken brand rose markedly, however, both in
the hotel, restaurant and café trade and in the off-premise
sector. The position of Amstel, which is obtainable as draught
beer in the hotel, restaurant and café trade, developed very
well. The market share of'33' Export in the off-premise
sector rose, due to promotional activities and a reduction of
the consumer price. In the declining non-alcoholic segment
sales of Buckler increased. Within the growing shandy
segment our Panach' brand strengthened its market share
and sales rose. In 1995 Monaco de Panach', an extension of
the shandy range, was successfully launched.
Earnings in France rose compared with the previous year.
This was due to a rise in sales, an improvement in the sales
mix and a reduction in the level of costs. On the other hand
there was strong price competition from cheap brands and
intensified competition between the large retail chains.
2000
1500
The implementation of the long-term programme CAP '96,
aimed at further improving the productivity and effectiveness
of the organization, was continued during the year under
review.
1000
500
Early in 1996 our position in France was considerably
strengthened by the acquisition of interests in the Fischer
Group and the Saint-Arnould Group. Government consent
still has to be obtained for the transactions.
Ol tO Tf lb
0\ O1 Cb 0*1
0N 0s 0s 0N 0N
Sales proceeds
Europe
in millions of guilders
25
