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. 31

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World of Heineken | 2008 | | pagina 33