nca Despite the continuing problems faced
this year, turnover and results both increased at
our breweries and soft-drink companies in Africa.
This increase is partly attributable to the use of
the US-dollar by the economy of the Democratic
Republic of Congo (formerly Zaire) and the
recovery of sales volume in several countries.
There was a strong rise in exports to Africa.
We take a confident view of our future in
Africa. Across the entire continent there are
indications of a cautious return to economic
growth. If this tendency continues it will impact
positively on Africa's beer markets which are
presently coping with political turbulence in
several countries.
With the change of regime in the Democratic
Republic of Congo the economy largely switched to
the US dollar. This brought about low inflation
which benefitted the turnover and result of
Bralima. Our production facilities were relatively
unscathed by the hostilities. The brewery in
Bukavu was able to resume production. The
temporary shutdown of this brewery, together
with the political situation, depressed sales
volume. We increased our interest in Bralima to
78%.
Sales volume at the brewery and soft-drink
factory in Burundi gradually started to recover from
the impact of the trade embargo imposed in 1996.
Sales volume in Rwanda rose strongly while
results also improved. Primus, the most
important beer brand was successfully reintro
duced in a bottle with a new modern label.
Our sales volume and results in Congo were
down due to the struggle for power. The soft-drink
factory in Brazzaville was completely destroyed
during the disturbances while the brewery had to
be closed temporarily. However, we were able to
continue production in Pointe-Noire.
The brewery in Sierra Leone also had to be
shut down due to the political situation.
Brasserie de Bourbon on Réunion posted
higher beer and soft-drink sales volumes.
In Angola the Nocal and EKA breweries both
increased their sales volume.
In Ghana we acquired 90% interest in ABC Brewery
based in the capital Accra. This considerably
strengthened our position in the Ghanaian beer
market, where we already had a presence via a
majority holding in Kumasi Brewery.
Nigerian Breweries succeeded in reducing
production costs. The decline in beer consump
tion in Nigeria has yet to be halted. The soft-drink
brand Crush was launched in autumn 1997.
Our interest in Nigerian Breweries was increased
to 30%.
In South Africa there was an increase in sales
of Amstel beer brewed under licence. Amstel was
also launched in kegs and in a large bottle.
Once again during the year under review,
personnel training in Africa was high on the list
of priorities. More students followed courses at
our central training schools in Kinshasa,
Democratic Republic of Congo and Lagos,
Nigeria. Alongside technical courses, training in
commercial and administrative/financial subjects
is becoming increasingly important for local
personnel.
Sales proceeds in Africa rose by 77% to NLC 955 milli
Consequently, earnings improved considerably.
HEINEKEN N. V.
REPORT OF THE
EXECUTIVE BOARD
19 9 7
31
