After a start in 1996, implementation of
multi-skilling and multi-tasking programmes
continued with success. Employees are
responding positively and the programmes are
contributing to cost savings.
A start was made on replacing the old crates
and 33 centilitre bottles for Heineken and Amstel.
This considerably enhances presentation for
both brands in the marketplace. Our Greek
brewery once again posted a higher result.
Ireland
Murphy Brewery Ireland increases its market
share year after year. This is being achieved in a
beer market growing at a faster pace than past
years, thanks to the favourable economic climate.
Murphy's posted a record result. Lager and stout
- for us the two most important market segments -
continue to grow while ale consumption is
declining.
Heineken, the best sold lager in Ireland,
continues to show increased sales volume and
market share. The Heineken brand is, among
others, supported by cultural sponsorship of
contemporary Irish music. Events in 1997
included the Heineken Green Energy Festival,
featuring a host of leading rock bands. As a
follow-up to this, a large number of highly
innovative and attention-getting promotions were
organized around the Heineken brand.
Murphy's Irish Stout also posted higher sales
volumes. The strength of the brand is increasing
thanks to the Murphy's Irish Pub concept,
alluring media campaigns and sponsorships.
During the report year Murphy's scored high
marks with the Murphy's Irish Open golf
tournament, featuring one of Europe's most
prestigious gatherings of players.
Amstel which was launched in 1996 in the
home consumption market, made good progress.
Switzerland
Calanda Haldengut, which has breweries in
Winterthur and Chur, realized a positive result,
with sales volume and market share both higher.
Considerable production cost savings were realized
Sales of the Heineken brand were increased once
again, expanding the dominant position in the
premium segment.
Both regional brands, Calanda Braü and
Haldengut, realized higher margins, in part
thanks to cost-saving measures and improved
selling prices.
Since the launch of locally-brewed Amstel bee r
in 1996 sales volume has virtually doubled.
The French brands Desperados, Kingston anc
Adelscott came as a welcome addition to the ranf e
in the specialty beers segment.
Hungary
Our Hungarian brewery maintained its market
share in a fiercely competitive market. Sales of
Amstel beer were higher than in 1996. Buckler's
sales also increased mainly thanks to improved
distribution. The two brands play a key role in our
market strategy. Sales of the low-priced Talleros
beer were down on the previous year.
Advertising, promotion and merchandising
activities were augmented to reinforce the markf t
position. The promotion CD of the 'Concert of th
Year' organized by Amstel Hungary, was awarde 1
the press prize for the most creative, attractive
and successful promotional activity in 1997.
Slovakia
The Zlaty Bazant brewery posted encouraging
growth in sales volume. We substantially
increased our market share to achieve market
leadership. With an eye to the steady growth
in sales, brewing capacity will be expanded to
one million hectolitres. To reinforce the
brand portfolio we launched Amstel beer in
the higher-priced segment of the market.
A production contract was signed with the
Czech brewery Pilsner Urquell for the
Cambrinus brand.
At the end of the financial year we acquired
a 49% interest in the Slovakian brewery and
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