its large market share. Heineken beer in the
innovative shaped can, looking like a beer glass,
exceeded all expectations in terms of consumer
appeal. Cooltap sales of Heineken doubled.
Amstel beer once again maintained its market
share. Vos and other amber-beers sold well and
increased our share of this segment, offsetting
lower sales volume for non-alcoholic Amstel Malt.
Brand Bierbrouwerij maintained its market share.
The integration of our hotel, restaurant and
café distribution and sales organizations
progressed apace and should be complete by the
end of 1998. Polls of the hotel, restaurant and
café sector show a strong, further improvement in
our customer-orientation and in the quality of our
service offering.
Expansion of capacity at the Dutch breweries
by three million hectolitres proceeds according to
plan. The additional capacity is needed to meet
the burgeoning export demand for Heineken and
Amstel beer. Beer brewed for export reached a
new record in the course of the financial year.
The new fermentation and storage tanks went
operational at the Zoeterwoude brewery.
The new bottling line exclusively for export beer
went operational in October; this is a prime
example of the efficiency achievable with a
combination of modern technologies and team-
based multi-skilling. At our brewery in Den Bosch
the first stage of expansion of the beer cellars
was completed and a new canning-line for export
went operational.
There was a strong increase in the Dutch
soft-drinks and mineral water market. The cola-
segment still accounts for 50% of this market.
The decline in the lemon-lime segment was
limited. The market price level was down on
last year.
Vrumona also realized a higher volume of
sales, but below the pace of the market as a
whole. Strongly expanded marketing activities
resulted in growth for the Pepsi-Cola and SiSi
brands while halting the decline of 7Up.
The export activities increased. However,
Vrumona's result was down on last year.
An agreement was reached with the labour unior s
and workers' councils on a project setting out
the training and deployment potential of our
personnel. The accompanying social plan
contains agreements on solutions where cases
of limited or no deployment potential arise.
France
Our French operating company posted a higher
result. Both existing breweries and the St. Arnould
and Fischer operations acquired in 1996
contributed to the possitive development.
These acquisitions improved the product range
significantly. The integration of the new
companies proceeds on schedule, with the
contribution to profit already better than expectec
The Heineken brand, leader in the premium
segment, continued its progress. Specialty beer
sales volumes posted remarkably steep increases
Notable here was the spectacular growth of the
popular brand Desperados, using our enhanced
distribution network in France. Heineken,
Desperados and other specialty beers all contri
buted to an improved sales-mix.
The selling price of our "33" Export standard
beer was raised. Although this led to some loss ii
market share, "33" Export increased its
contribution to the result.
Amstel is performing well in the hotel, restau
rant and café trade and is now leader in the keg
beer segment.
We realized a slight increase in margins due 11
improved selling prices and despite a rise in
excise.duty at the start of 1997. Productivity at orr
French breweries rose thanks to previous
investments in efficiency and a reduction in
personnel numbers. Concentrating production
for the various segments of the beer market at
specialized breweries will mean a further increase
in productivity. To this end the Fischer brewery
has been equipped with an ultra-flexible bottling
line enabling the highly efficient bottling of even
very small quantities of specialty beer.
Meanwhile, a new canning line went operational
at Schiltigheim.
Sales proceeds in Europe rose by 7.7% I
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