Africa and the Middle East
Review by region
Africa In Africa we own a number of breweries that hold substantial market shares in various countries.
The breweries produce local brands and in a number of countries Amstel as well. In addition, most
of the companies produce soft drinks. In some countries Heineken, Amstel or Miitzig are brewed
under licence and marketed by third parties. Imported Heineken, available on a modest scale, grew
On the whole, 2000 was a reasonable year for Heineken in Africa. In a number of countries the
political and economic situation improved and sales of beer and soft drinks recovered. In Nigeria
Heineken acquired a majority interest in Nigerian Breweries, the market leader in that country.
In central Africa, especially in the Democratic Republic of Congo and in Angola, our breweries once
again had to operate under adverse political and economic conditions. The profitability remained at
the level of 1999.
We are placing increasing emphasis on the training of our local personnel and the reinforcement
of our organizations. In particular much has been invested in Africa in educating and training our
employees. This approach contributed to better performances in our African companies in spite
of the sometimes difficult working conditions. An additional goal of this training is reinforcement of
the Heineken culture in the organizations in Africa.
Last year a programme to study health and safety aspects was set up in all our companies. At the
moment plans for optimization are being prepared for each location.
The investments made to modernize our breweries and soft drinks facilities have been substan
tially increased. As a result, the efficiency of our breweries improved. We updated and standardized
procedures and systems in every part of our organization. The improvements implemented were
backed up by education and training. In this context great progress has been made in reducing
water and power consumption. As part of our environmental policy all the breweries in Africa will
in the next few years be equipped with a wastewater treatment plant.
At the end of December we increased our interest in Nigerian Breweries in Nigeria to 54% by
converting a loan which had been granted to finance investments for modernizing and expanding
the breweries. From 1 January 2001 Nigerian Breweries will be fully consolidated in our annual
accounts. The beer market in Nigeria has a size of more than 7 million hectolitres and is the second
largest beer market in Africa.
The beer market expanded thanks to the improving economy, although the reintroduction of excise
duties on beer at the start of 2000 caused a slowdown in growth. Nigerian Breweries increased its
sales and market share considerably, with sales of lager and malt beers in particular rising. Its prof
itability also increased.
Another Nigerian brewing group, Consolidated Breweries, appointed Heineken as a technical con
sultant. As part of the agreement we participated in a share issue, through which we acquired a 23%
interest in Consolidated Breweries.
The political and economic situation in the Democratic Republic of Congo showed no im
provement. Nonetheless, our subsidiary Bralima succeeded in raising its sales of beer and soft
drinks. Sweeping government price controls and fierce competition had an adverse effect on prof
The peace agreement in Burundi opens the way for economic recovery. The economy has suf
fered badly from the trade embargo and the political situation in recent years. In 2000 we finally
received permission to adjust selling prices to the rising costs, but the increase was not enough to
realize a better profitability.
The situation in Congo improved considerably following the unrest of the last few years.
Brasseries du Congo achieved higher sales and improved its profitability.
HEINEKEN N V. ANNUAL REPORT 2000