Heineken's strategy: Broad leadership positions Selective segment leadership positions for Heineken Or we are competing only in the premium segment of the market with the Heineken brand as our premium lager. This is what we call a segment leadership position. Operational excellence Acquisition of production and distribution platforms in attractive markets NOVEMBER 2004 Fürstenberg brewery has a long-standing history and is situated in the town of Donaueschingen in the South-German Black Forest. Its tradition dates back to 1283 when King Rudolf von Flabsburg granted the right to brew beer to Count Heinrich von Fürstenberg. The following generations made use of this privilege and created an efficient brewery business. In 1705, Prince Anton Egon decided to put the brewery on a proper commercial footing. Over the centuries Fürstenberg has gained an enviable reputation for the taste and quality of its hand crafted beer. Fürstenberg beers are all pure and natural products and are only brewed with the finest hops, selected malts and fresh Black Forest water. Jean Franpois van Boxmeer is pleased that the Fürstenbergische Brauerei has become part of the joint venture with Brau FHolding and explained: "This acquisition expands Brau Holding International's presence in Southern Germany. It will deliver synergy gains through both cost reductions and central purchasing. Furthermore, the Fürstenberg brand fits well within Brau Holding International's portfolio of German premium brands." The Fürstenbergische Brauerei had a sales volume of 700,000 hectolitres in 2003 and operates a brewery in Donaueschingen with a production capacity of one million hectolitres. The brand portfolio includes the company's leading brand Fürstenberg and the brands Riegeler, Baren Pilsner and Qowaz (cola/beer mix). The Fürstenberg brand is also exported to Italy, France, Switzerland, the UK and Spain. Combining the power of local and international brands, Heineken's strategy is aimed at creating an excellent financial position based on leading market positions, based on four elements. All four elements leading to excellent and sustainable financial performance. We are either competing in all relevant segments of a market by combining strong local brands with our international brand portfolio. This is what we call a broad leadership position. Together with operational excellence these two items form the autonomous growth engine of the company. We pursue a balanced expansion through autonomous growth and value adding acquisitions. Acquisitions should provide us with local production and distribution platforms in (potentially) attractive markets. By adding our know-how and our international brand portfolio, we are growing these companies, striving for operational excellence and making them more profitable. FÜRSTLICH FÖRSTENBERGISCHE BRAUEREI

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World of Heineken | 2004 | | pagina 37