the large breweries continued unabated and
is resulting in insufficient returns for the entire
brewing industry, which is suffering from excess
capacity. Amstel Hungary improved its sales and
achieved a slight increase in its market share.
The increase in sales was attributable to the
success of locally brewed Heineken beer and the
introduction of imported Zlaty Bazant, a beer
produced by our brewery in Slovakia. Both brands
strengthened the company's position in the higher
priced beer segment. At the start of the financial
year Amstel Hungary was awarded the ISO 9002
quality certificate.
Slovakia
A weak economy and the associated reduction in
purchasing power resulted in a marginal decline
in the beer market and pressure on selling prices.
Nonetheless, the sales of our Zlaty Bazant and
Corgon breweries increased thanks to the good
performances of their brands of the same name.
Their joint market share likewise increased.
The brand strength of Zlaty BaSant in the regional
market renders it possible to export this beer to
neighbouring countries. A new brand, Kelt, was
successfully introduced and positioned in the
segment of Czech beers. The Zlaty Bazant
malthouse has been modernized and expanded.
The malthouse is one of the largest suppliers of
malt in Central Europe.
During the financial year we increased
our participation in Zlaty BaJant from 66% to
100% and in Pivovar Corgon from 51% to 59%.
Heineken also acquired a 51% interest in the
Martiner and Gemer breweries, thereby increasing
its total market share in Slovakia to 37%. Martiner
and Gemer together brew 570,000 hectolitres.
They hold strong positions in their home regions.
Bulgaria
An improvement in the economy and consumer
purchasing power resulted in a rise of the beer
market. The Ariana and Zagorka breweries
suffered from competition from low-priced beers.
Both breweries have developed plans to handle
the situation. Implementation of the breweries'
comprehensive programme of modernization and
their programme for improving distribution is
proceeding to plan.
Macedonia
The beer market in the former Yugoslav republic
of Macedonia showed strong growth. Pivara Skopje
increased its sales and improved its result. Both
the premium brand Skopcko and the mainstream
beer Star Lisec grew. Sales of soft drinks also
increased. The brewhouse of the Pivara Skopje
brewery and the production facilities for soft
drinks have been modernized.
Other countries in Europe
The beer market in the United Kingdom declined
further. Sales of our brands Heineken Export and
Murphy's Irish Stout were also down compared
with 1998. Sales of Amstel beer increased thanks
in part to the prestige sponsorship of the UEFA
Champions League.
Exports to Germany rose once again. The number
of Heineken bars in the on-premise sector
increased sharply. Distribution was given a new
impetus thanks to the conclusion of a contract
for the sale of Heineken via shops linked to a chain
of petrol stations. Sales of the imported specialty
beer Desperados rose sharply.
A new distribution network was established in
Ukraine.
The Albert malthouse in Belgium expanded and
modernized. The malthouse is one of the largest
and most modern in Europe.
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