its support of Pepsi-Cola and Sisi. Sales rose and its market share increased slightly. Profitability also improved thanks to a combination of higher sales, somewhat better margins and cost control. France The beer market in France showed a modest increase. Our operating company Sogebra achieved higher sales and slightly improved its market share. Higher sales, positive changes in the sales mix and stringent cost control produced a higher profitability. Sales of Heineken beer achieved a double-digit increase. Amstel further reinforced its position in the on-premise sector. Growth was also to be seen in the mainstream beer "33" Export. The distribution of "33" Export in PET bottles has been expanded to cover all of France. Although sales are rising, the volumes in PET packaging are for the moment still modest. Of the specialties, Desperados in particular continued its swift rise both in France and other countries. Our sales of low-priced beers fell marginally. The export of our French beers to the United Kingdom once again increased. Italy Beer consumption in Italy was slightly down on the level of the peak year 1998. Heineken Italia retained its market share and market leadership. In spite of lower sales profitability still increased thanks to an improvement in sales mix and in productivity. The Heineken and Moretti brands achieved higher sales. Extensive advertising campaigns, high brand visibility and music sponsorship reinforced the beer drinker's preference for Heineken. Moretti developed into the leading mainstream beer brand. To further reinforce the brand, Moretti sponsored a number of Italian football events. The Dreher brand was repositioned and backed up by extensive promotional activities, reinforcing the position of Dreher in the off-premise sector. Ichnusa beer retained its leading position in Sardinia. The specialties too attracted increased consumer interest. Heineken Italia scored well in a customer and consumer satisfaction survey. Nonetheless, the survey provides new leads for further improving service. Spain Thanks to the growing economy, increasing tourism and the excellent weather, the beer market expanded during 1999. Sales of our brewery El Aguila grew more strongly than the market. El Aguila's profitability improved substantially. Sales of Heineken beer rose more than the market average. Two new commercials were developed on the 'Think green' theme. For the first time in years, the growth of Aguila-Amstel exceeded the increase in the market. The successful promotions and sponsoring activities involving Aguila-Amstel beer resulted in a rejuvenation of its image and the influx of new consumers. In addition, the intro duction of 30-litre kegs and other new types of packaging supported the brand. Sales of Buckler increased. El Aguila developed various cost-cutting initiatives. Canary Islands sales of Heineken beer also increased. Heineken reached an agreement with Diageo on the takeover of 98.7% of the shares in Spain's largest brewing group, Cruzcampo. The Spanish authorities approved the takeover subject to a number of conditions. This makes Heineken the market leader in this sizeable beer market and presents the Heineken brand with much greater sales potential. Cost savings and economies of scale can also be achieved. The integration of the brewery activities of Cruzcampo and El Aguila will take a number of years. C reece The Greek beer market once again showed modest growth. Mainstream beers grew faster than the beer market as a whole. The volume of premium beers was at last year's level. Athenian Brewery achieved better profits thanks to higher sales and cost savings. Sales of Amstel beer grew faster than the market. The Heineken brand maintained its leadership position in the premium segment. nks to higher sales, a better sales mix, higher selling prices reased considerably. HEINEKEN N.V. REVIEW OF THE EXECUTIVE BOARD 19 9 9 23

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1999 | | pagina 26