competition featuring top European clubs,
contributed towards an increase in brand aware
ness and a reinforcement of the Amstel image.
Amstel renewed its UEFA sponsorship contract.
In Africa, sponsorship of the Africa Cup of Nations,
the continent's prestigious football competition,
played a similar, positive role. Amstel also sponsors
various local football activities.
The renewed Amstel Internet site 'United Sites
of Amstel' (www.amstel.com), which was opened
at the end of 1998, was further expanded.
The number of visitors rose sharply thanks in part
to a partnership with, and link to, the tourist site of
Amsterdam (www.visitamsterdam.nl). The use of
direct and interactive communications technology
contributes towards a broadening of the core
values of Amstel: Friendship, Fun and Freedom.
Although the specialties segment is small, it
is still growing - especially in the developed beer
markets of Western Europe and North America.
Specialty beers have therefore acquired a
permanent place in our portfolio and the sales
of these beers display continuing growth. Most
successful is Desperados, which showed strong
growth in France and Germany in particular. Sales
of the white beer Wieckse Witte also increased.
Murphy's Irish Red, an amber-coloured beer,
was introduced into various markets. Murphy's
is especially growing in a number of countries of
Western Europe and will also be introduced into
new, attractive markets. So far, more than 100
Murphy's Irish pubs have been opened. A new
pub concept known as Murphy's House has been
developed in France.
esearch and Development
Innovation in production, product and packaging,
and others areas constitutes a cornerstone of
Heineken's policy and is based on an extensive
programme of research and development.
The programme, which is coordinated from the
Netherlands, makes use of the expertise of various
leading R&D institutions and also involves our
suppliers. Many parts of the organization are
involved in the projects worldwide. This improves
use of the knowledge available: effective improve
ments are implemented swifter in the organization.
Last year again, projects involving the develop
ment of new types and shapes of packaging got
under way. The development of various new shapes
of beer cans achieved good results. Successful
promotions were conducted in various countries.
There are numerous developments in the
technology of PET bottles and these are also being
studied closely. France is taking the lead in the
marketing of "33" Export in 50 cl. PET bottles.
New introductions are in preparation.
Initiatives aimed at achieving the same
production at lower investment levels and produc
tion costs produced concrete results. In 2000, tests
will be carried out in a production environment
to prepare for application in the breweries.
Maintenance policy has also been completely
revised. Thanks to projects involving optimization
of the procurement of raw and packaging
materials, it is possible to procure the requisite
quantities with a better and more uniform quality
at more attractive prices. These efforts ensure that
Heineken continues to have an optimum cost
structure.
The Group in particular places emphasis on
supplying pure, natural products of the highest
quality and on a continuing reduction in the
burden on the environment. In order to continue
guaranteeing the highest quality worldwide,
research has been carried out with the aim of
enabling us to trace our products throughout
the whole chain, from raw materials via production
and distribution to the beer in the market. Also
in the framework of supply chain management,
continuing optimization of production and
logistics planning and the potential for
introducing online ordering also received much
attention. In the case of exports in particular, this
can reduce the lead time between when the beer
is bottled and when it reaches the consumer.
Knowledge management remains a focus of
attention within the Group. At the end of 1999,
a project in which knowledge in the field of
production and logistics was made accessible to
HEINEKEN
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