Review by region
Europe
Strong growth in Heineken
An end appears to have come to the years of decline in the Hungarian beer market. Although
margins are still low, the beer industry is starting to become profitable.
Amstel Hungary increased its sales and improved its sales mix. Together with cost savings this
resulted in a higher profitability. Heineken beer, which has been brewed locally since 1999, contin
ued its advance. Sales volume of Amstel was down on 1999. The introduction of the five-litre party
can and other attractive seasonal packagings are intended to give the brand a boost.
Modernization of production facilities
The beer market remained stable. Sales of Pivara Skopje's two main brands, Skopscko and Star
Lisec, were at the level of the preceding year. The profitability of the company was lower due to the
devaluation of the local currency.
Pivara Skopje started a programme of modernization for its production facilities. The brewery and
soft drinks facility will in three years be housed in two separate, modern production units.
Other countries in Europe
In the United Kingdom sales volumes of Heineken Export and Heineken Cold Filtered were below
last year. Our licencing partner Whitbread Pic sold its brewery interests, but will for the time being
continue to brew and market Heineken beer. The repositioning of Heineken beer in the premium
segment of the UK beer market is being studied. The UK customer's strong interest in Heineken Cold
Filtered is playing an important part in this. A potential repositioning will involve considerable mar
keting efforts. Murphy's Irish Stout felt the effects of the declining popularity of stout in the United
Kingdom.
In Belgium the third production unit of the Albert malt-house was completed. The malt-house
now has a capacity of 230,000 tonnes of malt, making it the largest in Europe. In May we acquired
a 50% interest in Belgium's Affligem brewery, which was increased to 95% at the beginning of 2001.
The brewery mainly brews the abbey beer Affligem, which is a valuable addition to our range of spe
cialty beers.
In Germany sales volume of Heineken beer continue to increase, even though the market share
is still modest. The number of outlets in the large cities was again expanded. Desperados beer,
imported from France, is doing particularly well.
In Scandinavia sales of Heineken beer are growing. Heineken has concluded a licence agreement
with Spendrups Bryggery for the production and sale of Heineken beer in Sweden. Heineken fits
well into Spendrups' brand portfolio and can exploit the Swedish brewer's knowledge of the market
and its distribution network.
The export of Heineken beer is making good progress in Eastern Europe.
Hungary
Macedonia
HEINEKEN N.V. ANNUAL REPORT 2000
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