Africa and the Middle East
56 Heineken N.V. Annual Report 2004 Report of the Executive Board Regional Review
Group Volume Africa and the Middle East in millions of hectolitres
2000 9.2
Reference to market positions 2001 9.9
and market shares in the relevant 2002 10 6
countries is based on available
market information and refer 2003 12.7
to an estimate of market ratios. 2004 13.5
Regional review
This volume growth came despite continuing difficult economic circumstances in many countries.
Since most currencies in the region shadow the US dollar, its decline against the euro eroded
purchasing power, as did inflation. On the positive side, higher earnings from rising oil and minerals
prices boosted some economies. In a number of countries locally-brewed Heineken became available
at an affordable price for the first time.
Sales volume of the Heineken brand grew almost 5%. Across Africa, sales of Amstel, including the
non-alcoholic Amstel Malta, rose sharply to 1.9 million hectolitres from 1.3 million in 2003.
Operations
Heineken has owned breweries and has enjoyed substantial market positions in several African
countries for more than 50 years. In Africa we produce a variety of local brands and in some countries
Heineken and Amstel beer are also brewed locally. Most of the operating companies also produce
and market soft drinks. Heineken beer is also imported on a modest scale. In South Africa Amstel is
brewed and distributed under licence.
The most important regional Heineken brands in Africa, however, are the 50-year-old Star and
Gulder in West Africa, the 70-year-old brand Primus, popular throughout Central Africa, and the non
alcoholic Maltina, of which we produce approximately 1 million hectolitres annually.
In 2003, we narrowed our focus to countries with attractive beer markets and the acquisitions and
portfolio adjustments made in 2004 reflect that more profitable focus. During the year we were active
in terms of defining our structure across the region. We acquired two new breweries, closed one and
put our two Ghanaian breweries into a new merged entity. In addition, we sold our minority stakes
in NOCAL (27%) and EKA (46%) breweries in Angola and in our subsidiary Brasseries du Logone in Chad.
In line with our strategy of expanding in Nigeria, we reached agreement in principle in late 2004
to increase our stake in Nigerian based Consolidated Breweries from 24% to a controlling interest
of 50.05%. Consolidated Breweries achieved a sales volume in 2004 of 877,000 hectolitres.
