Accelerate efficiencies
Generating top-line growth is only part of the
journey towards sustained high performance.
Becoming more efficient in our production and
our ongoing operations is also a prerequisite
if we are to remain strong, independent and
competitive.
That is the reality and the aim of our three-year
'Fit2Fight' initiative. It is this initiative that aims to
make gross savings of €450 million of our fixed-
cost base by the end of 2008. The savings will
be split across our regions, operations, functions
and head office.
In 2006, we made some tough choices linked
to this initiative. In total, in 2006, we achieved
approximately 25 per cent of the total savings.
In 2007 we expect to achieve 30-34 per cent
and in 2008, the remaining 41-45 per cent.
Whilst we have made progress, and I am confident
that we will achieve our goal, no-one in Fleineken
underestimates the impact of the programme on
those of our employees directly involved and we
do all we can to support those affected through
the process. We also recognise that we have to
balance our cost reduction with investment in
generating top-line growth.
In 2006, it was not just new initiatives such as
Fit2Fight, which helped us improve our efficiency.
The continued focus on Total Productive
Management (TPM) throughout our organisation
is allowing us to continually reduce the cost of
brewing our beers. TPM is now established in
every significant operation within the Heineken
Group and will continue to be a major programme
within the organisation for the foreseeable future.
Efficient business
Internal programmes enable us
to be in top condition to tackle
competition. Not only by cutting
costs but also by changing the way
in which we do business. Our focus
is on our core business, whilst
economies of scale and IT support
functions are leveraged.