tl Europe with
n
haps over the longer term, Russia, the
Ukraine and the Baltic Republics. In
Hungary a participation was realised
two years ago (Komaromi Sörgyar)
and, as regards the other priority
countries, Ypma can report that
serious work is being done on a num
ber of projects.
The government and the manage
ment play a crucial role in the priva
tisation of state-owned businesses.
But privatisation in the brewing
industry faces some opposition. Brew
eries are seen as part of the national
heritage and the authorities are
reluctant to offer those companies to
West European bidders. The other
side of the coin, however, is that most
breweries in Eastern Europe are
faced with a dilemma. They need
financial resources for further tech
nological development and to boost
their management skills; these are
the elements required to safeguard
the brewery's continuity.
Proof
Heineken is not necessarily looking
for breweries with big volumes and
high market shares. The participation
in Komaromi (market share approx.
4%) is proof of this. Though this is not
a hard and fast rule, Ypma believes
that big breweries often have a com
plex organisational structure, a sur-
-1 lie Ypma: 'The cards are now being
shuffled'.
plus of manpower and capacity and
are often managed bureaucrati-
cally. Smaller breweries are more
flexible, more efficient, faster to re
spond to change.
The results of Komaromi Sörgyar
have strengthened Heineken in its
belief that the chosen strategy will be
successful. The introduction of locally
brewed Amstel in Hungary outstrip
ped expectations and demand for the
product is still increasing.
Exports
The (future) participations in
Eastern Europe should ultimately
help to build a good position for
Heineken Beer in these markets.
Whether and when Heineken Beer
will be introduced depends entirely
on how spending power develops and
on the segmentation of the beer
markets.
Until that time the Heineken com
pany must not sit still. The image of
Heineken Beer is today already being
built up by means of exports. The
future will tell whether Heineken
Beer will ultimately be brewed locally
in Eastern Europe. There can be no
absolute certainty about this. Much
will depend on the developments in
the beer market.
Budapest, capital of Hungary. Heineken's
participation in this country is very success
ful.
THE WORLD OF HEINEKEN
