Africa/Middle East
Africa
Regional Review
11
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Group volume
Africa/Middle East
in millions of hectolitres
Sales increased in virtually all markets in Africa and
the Middle East. Heineken's overall result improved
and beer sales in this region rose from g.g million hi to
io.6 million hi (+6.7%). Sales of Heineken beer in Africa
and the Middle East were especially strong, with
growth of over 22%. Heineken acquired two brewery
companies in the Middle East, which will provide valu
able support for our expansion strategy in the region.
Heineken owns breweries in several African countries
which have substantial shares of their respective 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 several
countries, the Heineken, Amstel and Miitzig brands
are brewed under licence and marketed by third parties.
Heineken beer is imported on a modest scale.
The Heineken brand performed particularly well in South
Africa and Nigeria.
One of Heineken's main priorities in Africa is staff train
ing and development, which is a critical success factor for
any brewery. Heineken runs training centres in the region
and also provides training courses in the Netherlands.
A number of common pan-African sales, distribution, inter
nal organisation, supply-chain management and account
ing systems were introduced at our breweries last year.
The bottling lines at breweries in several African coun
tries were replaced with modern equipment offering
not only greater capacity and lower operating costs, but
also improved safety. Construction work is in progress
on waste-water treatment plants at a number of locations.
Although economic and political stability has been
restored to some extent, Nigeria is still heavily depend
ent on oil revenues. Inflation remained high and beer con
sumption increased only marginally, due to the protracted
wet season. Nigerian Breweries also reported higher sales,
but was held back for much of the year by a shortage of
production capacity. The result improved despite higher
costs incurred in modernising the breweries and a
substantial general pay rise imposed by the government.
Competition intensified with the entry of a new player in
the Nigerian beer market. Nigerian Breweries' five existing
production facilities were modernised in 2002 and capaci
ty was extended with the installation of new fermentation
and lagering tanks and additional bottling lines.
Sales of imported Heineken doubled and Amstel Malta
HEINEKEN N.V. ANNUAL REPORT 2002
32
