Poland Work started on the construction of a new brew-house at the Chur brewery which will enter service in the second half of 2002. The concentration of production facilities in Chur will improve the cost structure. Heineken Switzer land acquired several more beverage wholesalers in 2001. Rising market share in a static market The Polish beer market had to cope with sharp rises in excise duties in 2001, as well as a downturn in consumer expenditure as the economy weakened. For the first time in seven years, there was no growth in the market. Grupa Zywiec's beer sales increased from 7.5 to 7.6 million hi. Its market share increased slightly and its financial per formance was greatly improved. Zywiec's financial position was strengthened in November by a successful share issue, which gave Heineken the opportunity to increase its stake from 51.6% to 61.8%. Strong national mainstream brands increased their mar ket share at the expense of many regional brands. Grupa Zywiec's national brands- Warka lager andTatra in the mainstream segment and Warka Strong in the strong beers segment - performed particularly well. Warka lager andTatra, former regional brands which were launched nationally in 2001, achieved growth rates of 36% and 50%, respectively. Sales of Zywiec in the national premium segment remained stable. Sales of regional brands Specjal and Lezajsk were higher. Some of the weaker regional brands were withdrawn from the market. Grupa Zywiec focuses primarily on brands which have strong development potential at the national level. Sales of Heineken beer increased and further growth of the brand is expected to accrue from its full integration into the Zywiec organisation in 2002. In the second half of 2001 the government introduced tight restrictions on the advertising of alcoholic drinks, including a ban on TV, radio and cinema advertising between 6 a.m. and 11 p.m. Higher excise duties and lower consumer spending brought pressure to bear on sales throughout the brewing sector. Competition inten sified in 2001 and is expected to remain strong in the years ahead. Substantial improvements in cost structure REPORT OF THE EXECUTIVE BOARD 29

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2001 | | pagina 36