Middle East
58 Heineken N.V. Annual Report 2004 Report of the Executive Board Regional Review Africa and the Middle East
In Sierra Leone, after years of interrupted production due to war and unrest, the Sierra Leone
Brewery was partly renovated in 2004. A new bottling line was officially opened in April by the
country's President. However, skyrocketing inflation and plunging purchasing power have curbed
consumption.
In Burundi, Brasseries et Limonaderies du Burundi reported considerable profit growth as a result
of a strong volume increase, a stable exchange rate and effective cost management.
In Rwanda, Brasseries et Limonaderies du Rwanda turned in a higher operating result, despite an
erosion of consumer purchasing power due to the difficult economic environment and sharp
increases in utility rates. We improved nationwide distribution and production productivity increased
once again.
The market in Congo was under continued pressure as a result of weak consumer purchasing
power, although Brasseries du Congo was again able to match its 2003 performance. Volumes were
flat but did not impact the operating result, thanks to tight cost control.
On lie de la Réunion, Brasseries du Bourbon experienced intense competition from the
ready-to-drink segment, but despite this reported an improvement in operating result compared to
2003, thanks to a modest increase in volume.
In Ghana, the merger between Ghana Breweries and Guinness Ghana to form Guinness Ghana
Breweries was concluded in December. This venture addresses over-capacity in the Ghanaian market
and is expected to lead to improved profitability. Heineken has a 20% stake in the combined company.
In Cameroon, sales of Amstel and Mützig, which are brewed under licence, were slightly higher.
In Morocco, sales of Heineken, which is brewed under licence by Brasseries du Maroc, were up
7% compared to 2003.
Heineken has fully consolidated breweries in Egypt and Lebanon. A1 Ahram Beverages Company in
Egypt and Almaza in Lebanon are both market leaders in their countries. A1 Ahram Beverages
Company has brewed Heineken beer since late 2003.
At the end of 2004, we established Fayrouz International to sell the non-alcoholic malt-based beverage
Fayrouz brand internationally. Heineken has a minority interest in Tempo Beer Industries in Israel and
General Investment Ltd in Jordan.
