Spain
In Spain, the Company has breweries in Madrid and Valencia
and amongst others the brands Heineken, Buckler, Aguila
and Murphy's Irish Stout are sold.
There was an unfavourable economic situation in Spain,
which affected the purchasing power. The direct
consequences for the beer market were a stabilization of beer
consumption and continuing price competition. There was
also a further shift from the hotel, restaurant and café sector
to the off-premise sector.
35
<n m
Beer sales in Europe
brewed under the
supervision of Heineken
in millions of hectolitres
As in the previous year Heineken, the leading brand in the
premium segment, showed a growth. Sales of Buckler in the
non-alcoholic segment fell. Buckler remained the leading
brand in a sector characterized by an aggressive pricing
policy, which makes it difficult to retain market share. Sales
of the Aguila brand, which has a strong position particularly
in the hotel, restaurant and café sector, were under pressure
through the developments in the market.
The operating profit of El Aguila was almost breakeven.
Significant improvements in the field of cost reduction,
control of accounts receivable, efficiency of the distribution
organization and productivity were achieved. However, there
was still pressure on prices, especially in the off-premise
sector.
Italy
In Italy, the Company is active with breweries at Aosta,
Bergamo, Cagliari, Massafra, Messina and Pedavena;
amongst others, the brands Heineken, Amstel, Buckler,
Murphy's Irish Stout, Dreher, Henninger, Ichnusa, Messina,
Mc Farland, Stella Artois and Classica von Wunster are sold.
Beer consumption was at a lower level owing to the poor
summer. In addition, competition increased considerably;
above all, this had repercussions on the standard segment,
which was characterized by a price war.
Within this segment the marketing policy of the Dreher brand
was aimed at limiting a fall in sales as much as possible
without joining in the price war.
The Heineken brand improved its already good market
position, which was partly due to big marketing efforts. Sales
of Amstel did well, inter alia as a result of expansion of the
distribution.
Interbrew Italia S.p.A., acquired early in 1995, was integrated
with Heineken Italia in the course of the year. Owing to the
difficult market conditions and reorganization costs the
earnings of Heineken Italia were below the 1994 level.
Early in 1996 an agreement was signed with Interbrew
regarding the purchase of Birra Moretti by Heineken Italia.
This acquisition makes Heineken Italia the market leader in
that country. Government consent still has to be obtained for
the transaction.
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