Africa/Middle East
Africa
Regional Review
10
h-
r-'
-£> n? n?
Group volume
Africa/Middle East
in million hectolitres
The greater political stability and improving economic sit
uation in a number of important markets, including
Nigeria, Congo and Sierra Leone, fed through into growth
in beer consumption. Heineken Group's beer sales
increased from 9.2 to 9.9 million hi 7.8%), which translat
ed into a substantially improved result. Nigerian Breweries
accounted for much of this growth, due to a combination
of good performance and full consolidation of its figures as
from 2001.
The Heineken breweries in several African countries hold
substantial positions in their national markets. As well as
local brands, these breweries also sell Amstel beer in some
of these countries. Most of the companies also produce
and market soft drinks. In some African countries our
Heineken, Amstel and MLitzig brands are brewed under
licence and marketed by third parties. Sales of imported
Heineken, which is available on a limited scale, rose by 10%.
The Heineken brand is developing well in Nigeria in partic
ular and sales were also substantially higher in Gabon,
Ivory Coast and Algeria.
Staff training and development, which is a critical success
factor for any brewery, is a priority in Africa. New systems
were introduced and many training courses in sales,
distribution, supply-chain management and cost control
were provided. Heineken University's regional program
mes played an important part in this effort.
A start was made at several breweries on replacing the
filling lines. As well as reducing costs, the new equipment
also offers improved safety.
Although there were a number of local incidents, the
political situation in Nigeria remained stable, thanks to
the positive role played by the democratically elected
president. With the economic situation improving and
inflation under control, 2001 also saw growth in the
Nigerian beer market, the second largest in Africa. Sales
by Nigerian Breweries, the market leader, increased so fast
that the company had problems meeting the rising
demand. The financial result was sharply higher, reflecting
heavy demand for Star, the country's leading premium
beer. Nigerian Breweries has also taken on the marketing
and distribution of Heineken, sales of which are growing
steadily.
The five Nigerian Breweries plants operated at
maximum capacity. The construction of a sixth brewery in
Enugu, which will provide sufficient capacity to meet the
HEINEKEN N.V. ANNUAL REPORT 2001
36