Sales in Europe increased, rising in many
countries, among them Greece, Spain, France,
Poland and the Netherlands. In the United States
the beer market grew at a faster pace than in recent
years. Imported beers especially showed a striking
increase. With an 11% increase in sales, Heineken
was one of the most successful beers in this
segment. In the Far East, the first clear signs of
economic recovery presented themselves and some
of our breweries increased their sales. In Africa,
we were confronted in a number of countries with
political unrest, which had a negative influence
on beer sales.
The beer industry has for a few years now found
itself in a consolidation phase. Last year the big
players in the beer market once again took over
breweries. Heineken is playing a leading role in
the trend towards consolidation. The acquisition
of Poland's Brewpole group, which gave our
Company a market share of 37% in Poland,
was followed by a new step in the implementation
of our acquisition strategy. In Spain we received
approval for the takeover of Cruzcampo, the largest
brewery company in Spain. This makes Heineken
the market leader in the country, which in terms
of size is the third largest beer market in Europe.
In addition, acquisitions were made and interests
expanded in Central Europe, Africa and Asia.
Acquisitions fit into our strategy of acquiring
leading positions in markets which from a point
of view of profitability are promising. Capturing
leading market positions, allowing the Heineken
premium brand to grow, and achieving an
optimum cost structure are the three pillars of
our strategy.
The world beer market is expected to show
modest growth in the next few years. The greater
part of this growth will come from Latin America
and the Asia Pacific region. In addition, the
current positive development in the United States,
the world's largest beer market, will continue
for the time being. In Europe, sales of beer will
generally remain stable.
This is a direct consequence of consumer
preference for branded beers. The highest growth
will occur in the premium beer segment, with
the international premium beers taking the lead
and acquiring an ever greater share of the market.
The opportunities for growth in the low-priced
beer segment appear to be generally limited.
The concentration in the food trade has had a
number of consequences for brewers. On the one
hand, the new concentrations will extract keener
prices as a result of their larger purchasing
volumes, while on the other hand they want strong
brands on their shelves that sell well. More and
more decisive in the food trade's ultimate choice is,
beside the brand, supplier service in every link of
the supply chain. By opting for a supply chain that
provides the highest degree of service at the lowest
possible cost for the entire chain, Heineken is in a
position to add value for the food trade as well as in
on premise. This focus on service is supported by
efficient systems based on the latest information
and communications technology, including the
Internet.
The Group's success depends to a large degree
on the innovative capacity and commitment of its
employees. I would like to thank them for the work
they did and dedication they showed in the past
financial year.
K. Vuursteen, Chairman Executive Board
million. This represents a growth of 16%
H E I N E K
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