Prospects Heineken expects that the sales-mix can be further enhanced by exploiting shifts in consumer patterns in the direction of premium beers and specialty beers. Even in beer markets with zero growth this could lead to improved margins and higher profitability. Part of the growth of our premium beers will be realized by further export growth. The continued focus on cost control and efficiency will also play an important role in the company's profitability. Heineken expects results for 1998 to be higher than in 1997. Whilst the US-dollar exchange rate is more favourable compared with 1997. there are uncertainties surrounding currency fluctuations and activities in several countries in the Far East. Added to this, unpredictable developments like increases in excise duties and other governmental measures and the weather, prevent a meaningful prediction of the level of profit growth for 1998 at this moment in time. Heineken continues to have a favourable view of the company's longer-term profit development. In 1998 the net investments in tangible fixed assets will amount to approximately NLG 800 million. This will be financed from liquid resources available and from the cash flow, unless external financing is more advantageous. A sustained effort to produce cost-consciously, will be reflected in a slight reduction of the number of personnel in the existing breweries. General Developments the success of our Group is attributable to a combination of factors, two of which are particularly significant: the quality and vitality of our corporate brands Heineken, Amstel and Murphy's and the high level of efficiency at our breweries. Corporate Brands Sales of Heineken beer rose from 17.9 million hectolitres to 18.8 million hectolitres. This increase was realized among others in the United States, Spain and Italy. Heineken is available in more than 170 countries. The Heineken brand celebrates its i25t]l birthday in 1998. The strength of the brand has been further reinforced over the past year. This was partly thanks to more sharply focused marketing communication and an enhanced image at points of sale. Considerable attention was devoted to sponsoring activities. Links with tennis were further intensified. Alongside the US Open and the Davis Cup we are also involved with the Australian Open and play a role in numerous local tennis events. Meanwhile, for the third successive year we sponsored the Heineken Cup, competed for by 24 European rugby teams. These activities contributed to an even stronger position for Heineken as the world's most sophisticated premium beer. In music sponsorship, we started the Red Star Concert in the United States. Heineken Music Horizons is highly successful in Hong Kong. In Europe audiences totalling several tens-of- thousands attended the Heineken Night of the Proms. The promotion of'Tomorrow Never Dies', the new James Bond film, was also carried by Heineken internationally. A '007' can, in the shape of a beer keg was launched to coincide with this. Apart from the '007' can, eye-catching packaging innovations launched during 1997 included the 'shaped can' and the 'long-neck' bottle. Our internet-site (http://www.heineken.nl) remains one of the most popular and creative sites on the world wide web. J 4

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1997 | | pagina 32