2002 in Retrospect
in Germany, developed well. We see Paulaner Hefe Weisse,
which has substantial market positions in Germany, Italy,
Spain, France and the United States, as one of the main
stays of our portfolio of speciality beers.
In the UK and Ireland, stout continued to lose ground to
lager. Sales of Murphy's Irish Stout were down, mainly due
to lower sales in the UK, but Murphy's Irish Red achieved
significant growth in Spain.
Affligem, our Belgian abbey beer which has gained a
reputation as a high-quality beer for the connoisseur,
sold well in France and Spain and we expect it to find good
niche-market positions in other countries. Sales of Wieckse
Witte, a light, fresh-tasting white beer, were lower due to
the poor summer in Western Europe. Kriska, a vodka-
flavoured beer, was launched in France and sales have
exceeded our expectations.
Research and Development
Research and development are the basis of innovation
and therefore have strategic importance for Heineken.
Much of the R&D activity is carried out locally, but coor
dination is centralised. The R&D programme covers the
entire supply chain, from the evaluation of new and
improved strains of barley and hops to the development
of new products and packaging. On many projects,
Heineken works closely with other companies, suppliers,
research institutes and universities around the world.
The most significant innovation last year was the David
dispensing system for retail outlets with a relatively low
beer turnover. The David system, which uses a 20-litre keg,
offers good returns at lower sales volumes than the sys
tems based on a 50-litre keg. The patented David dispens
ing system is user-friendly, there is no wastage and no
pipework to be cleaned and, once connected, the keg
contents remain fresh up to seven times longer than with
the traditional dispensing systems. The number of David
systems installed since the launch has exceeded our
expectations.
A new 24-ounce (67-cl) can was developed for the US
market, to supplement our successful 12-ounce keg-
shaped can which had been introduced previously.
Warka in Poland became the first brewery to install a
membrane filtration system. This technology, which is
employed at the final filtration stage, replaces kieselguhr
and is therefore more environment-friendly.
Trials started with a new bottle inspection system known
as FBI (Filled Bottle Inspector) in 2002, which enables us to
detect glass fragments and other foreign objects in bottles
after filling. The FBI system, which has been developed by
Heineken in conjunction with other companies, is currently
undergoing extended testing at one of our breweries.
Health, Safety and Environment
Our operating companies achieved good results with
their water-saving projects. In the years ahead we shall
intensify our efforts in the area of energy-saving.
Our health and safety programme in Africa was extended.
Having previously published a two-yearly environmental
report, Heineken published its first biennial safety, health
and environment report last year, covering the period
2000-2001. This latest report was extended to include
information on the environmental performance of our
businesses outside Europe and our safety performance in
Europe. In recognition of our approach to reporting on
our social responsibility and sustainability policies and our
performance in those areas, Heineken was included in the
Dow Jones Sustainability STOXX Indices and the Store-
brand Index. Companies which perform well both finan
cially and in terms of their social responsibility are admit
ted to these indices.
Health and safety
Heineken makes every effort to prevent circumstances
arising at its breweries which might jeopardise the health
and safety of its employees and third parties such as sup
pliers and people living close to its plants. Where local
legal statutory requirements and rules do not exist or are
deficient, Heineken sees it as its responsibility to develop
and apply its own standards. Information and awareness
are essential to prevent employees being exposed to
unsafe and unhealthy conditions.
On the basis of a risk analysis performed on the findings
of a comprehensive health and safety study carried out
at our Bralima brewery in the Democratic Republic of the
Congo, guidelines have been drawn up for personnel
instruction and training which will be introduced at all our
breweries in Africa. One element of our medical policy in
Africa is care for employees who are HIV-positive or have
contracted Aids. Last year, we invested mainly in improv
ing the medical/social infrastructure in the Democratic
Republic of the Congo and the Republic of the Congo.
The exchange of expertise between our European loca
tions resulted in more consistent standards for our instal
lations and more extensive and better coordinated safety
training provision.
REPORT OF THE EXECUTIVE BOARD
15