World of Heineken 39 winter 2008/2009
The devaluation of the forint means that imports, such as oil and raw
materials, are becoming pricier. That's a double-edged sword for the
Hungarians, since a drop in the cost of raw materials served as a silver
lining to the financial crisis in most parts of the world.
Laszlo Benedek, Sales Director of Heineken Hungary says "We are
supporting our wholesalers by giving them advice on reducing costs
and sharing best practices. In addition, we have set up a purchasing
union that they can join to leverage lower prices from numerous
suppliers."
NIGERIA: STILL GOING STRONG
Although no nation is totally immune to the effects of the credit crisis,
some countries have fared better than others in the financial turmoil.
Nigeria is one such nation whose economy continues to grow. "We are
seeing some of the impact in decreasing oil prices," says Oladele Ajayi,
Sales Director of Nigerian Breweries. Nigeria, a member of OPEC, is
one of the world's major producers of oil. The nation's welfare depends
largely on the rise and fall of oil prices. The price of oil is still higher
than the Nigerian government originally budgeted for, which is one of
the reasons the credit crisis has had such little effect here so far. Also,
the country's banking system was relatively unexposed to the credit
crisis.
A further decrease of oil prices might have a small effect on the
economy. "The effect on disposable income should be limited
however, under the current circumstances," Oladele thinks. "Foreign
direct investment might decrease due to a worsening global economic
climate, but I think that gross domestic product will continue to grow,
in the absence of a global recession."
TOUGH TIMES AHEAD?
It is impossible to predict the future, and that has never been as true
as now. No one truly knows how consumers in different markets will
react to the slowdown. Worldwide, companies are looking to save
costs and are looking for additional sources of capital to weather the
tough times ahead. Heineken of course has also focussed on its own
operations, and cut costs wherever it can.
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