Our specialties and import beers were also well
received by consumers. Sales of the imported
brand Desperados developed exceptionally well
and the introduction of the locally brewed lager
of our French Fischer brand was a success.
Sales of Ioli mineral water also increased again.
The commissioning in Athens of the new
bottling line with a capacity of 80,000 bottles an
hour completed the modernization of our three
Greek breweries.
Ireland
A growing economy and a relatively young
population once again provided for a rise in the
beer market in Ireland. Lager continues to gain
ground at the expense of ales and stouts. By far
most of the beer, about 90%, is drunk on-premise.
Murphy Brewery Ireland realized a small
increase in its market share. Higher sales volumes
and better selling prices resulted in a considerable
increase in its result. The Heineken, Murphy's,
Amstel and Coors Light brands achieved higher
sales. The sponsorship of modern music events
and rugby, among other things, further reinforced
the Heineken brand. A 5-litre keg with integral
tap was introduced for Amstel and proved a great
success during the Halloween and Christmas
festivities. The Murph/s brand sponsored the
Murphy's Irish Open golf championship, which
drew many spectators. Murphy's own distribution
network developed exceptionally well, resulting
in a substantially improved cost structure.
Switzerland
The beer market in Switzerland continued its
downward trend. Competition increased.
Calanda Haldengut kept its sales volume level with
the previous year and increased its market share.
A better sales mix and cost control produced
higher profits. Sales of Heineken beer increased
again and the brand now accounts for more than
half of the premium beer segment. Amstel and
the specialties also performed well. Sales of the
regional brands Calanda and Haldengut were in
line with the market.
During the financial year Heineken made a
successful public bid for the outstanding shares
of its Swiss breweries.
Poland
The Polish beer market once again experienced
substantial growth in spite of lower economic
growth. A principal reason for this is that Polish
consumers increasingly prefer beer to vodka.
Competition became fiercer. A number of regional
breweries were able to reinforce their positions
thanks to the rise in demand for low-priced beer.
Sales of the Zywiec group increased.
The Zywiec and Warka brands in particular showed
encouraging growth. Sales of imported Heineken
beer rose substantially.
Zywiec S.A., in which Heineken holds a majority
interest, was incorporated in December 1998 as
a result of the merger of the Zywiec breweries with
Brewpole, to which the Elbrewery, Warka and
Lezajsk breweries belong. In the first year of its
existence Zywiec developed a large number of
activities geared to the integration of the various
breweries and a reinforcement of their brands.
Shortly before the summer season commenced,
the expansion of the breweries in the towns of
Warka and Zywiec was completed. Throughout
the group, programmes were started aimed at
improving efficiency and reducing costs. Zywiec
also acquired a majority interest in a major beverage
wholesaler in Warsaw.
The further reinforcement of the brands, in
particular the EB brand, had the highest priority.
One element of this brand reinforcement was the
substantial increase in marketing and advertising
investments. The strengthening of brands and
revitalizationof the EB brand will require high
investments in the next few years, too. As already
announced in December 1998, the creation of
synergies and development of the full potential
of the range of brands will take about three years.
Hungary
Good weather conditions halted the decline of
the beer market in Hungary. The price war between
HEINEKEN
REVIEW OF
EXECUTIVE
19 9 9
THE
BOARD
25
