that the way in which we implement our strategy in a company that
had become so much bigger needed to be adapted. We wanted to
get closer to the market again and to operate in closer conjunction
with our business partners." The Executive Board put its ideas on
paper and presented the plan 'Taking Heineken to the Next Level'
to the managers of the Operating Companies at a two-day session.
After the first day all the managers were of one mind. "They felt
that the direction we were proposing was the right one."
Just eight months after the launch, with the full cooperation of
the Works Council, 'Taking Heineken to the Next Level' is already
at an advanced stage. Bringing the organisation into line with the
new method of working is now in full swing. Thony Ruys is on his
guard against excessive optimism. "We haven't got there yet.
The next months will need to show whether the adjustments can
be introduced smoothly."
In recent years the outside world has placed question marks against
Heineken's expansion in relation to its competitors. Ruys: "We are
charting our own course and try not to make any acquisitions that
do not contribute properly to our profit growth. Our concern is not
with the hectolitres but with the profitability of those hectolitres."
Heineken waited patiently for its opportunities and sprang into
PAGE lO
action if interesting deals arose that were unlikely to harm it in
the longer term. "We certainly weren't sitting on our thumbs in
those years, just making a number of smaller and larger
acquisitions to strengthen our position in various countries and
expand it in others. There are economic laws which we have to
abide by. At the same time it is worth noting that our strategy
in relation to our competitors is now in fact viewed with
appreciation."
Mr Ruys shrugs his shoulders at the sudden positive reassessment.
He is not one for looking back, simply because it is a snapshot in
time. Since the financial year has only just concluded he is
however prepared to make an exception for 2002. "It's gone well,"
says the Chairman of the Executive Board with a sense of under
statement. Despite external factors such as the economy and the
bad summer in southern Europe, Heineken managed to record a
net increase in profits of 11.2%. The forecasts for 2003 are
cautious. "Things aren't getting any easier. One may wonder
whether the political uncertainties will stop people from going
out for a drink. Sars does not help either e.g. in the Far East.
However, we should still be able to improve our long-term
performance."
