Central Africa: well
positioned for growth
^respective of the conflict in the country, our
rewery in Lebanon remained operational,
in Israel, EBIT grew slightly. Our partnership
rocco in the United Arab Emirates continued
o perform well.
Ve recorded excellent results in our soft drinks
derations, with double-digit volume growth.
iese activities are mainly based in the sub-
aharan region, Israel and Egypt.
December, we acquired 49.99 per cent of
e shares in the Tunisian company, Société de
oduction et de Distribution des Boissons S.A.
3DB) in Tunisia. This joint-venture company
II invest in the construction of a new brewery,
lich is expected to be operational early 2008,
d will brew and distribute Heineken and local
ainstream brands in Tunisia.
ican beers
ar is Africa's number 1 selling beer,
ar is brewed by Sierra Leone Brewery Ltd,
which Heineken has a 42.5 per cent stake,
irnus beer is another popular lager beer
ewed by the Congolese brewing company
ralima, owned by Heineken.
The Great Lakes area in Africa has gone through more than
a decade of civil strife, political turmoil, war and economic
decay that ended about two years ago. Heineken never ceased
operating in the region during these difficult years. Because of
our continued presence, we were well positioned to improve
our performance as soon as the political and economic
situation started to change for the better.
The economics of the region are still difficult, but the potential
in terms of population and volume growth is very attractive,
especially if the peace process consolidates. According to
external studies, the expected total beer volume growth in our
key markets - Congo, Burundi, Democratic Republic of Congo
(DRC), Reunion and Rwanda - should exceed 3.7 per cent per
year until 2010, making this area one of the most attractive
in terms of organic growth.
Heineken is widely present in these markets, with majority
stakes in operations located in the area. We have a total of
13 production units for beer and soft drinks. We sell a wide
portfolio of brands: Amstel, Primus® and Mutzig® are present
in all the countries, together with Guinness for which we
have national licences. Other key brands, like Maltina® and
TurboKing® are mostly sold in Congo and DRC. In DRC we
recently reopened two breweries after years of inactivity.
Consolidated volumes in the region totalled 4 million
hectolitres by the end of 2006, or 1 million hectolitres higher
than at the end of 2005. As a result, EBIT contribution in those
countries increased by 60 per cent.
Heineken N.V. QQ
Annual Report 2006 O «7