Heineken finds European Commission decision excessive and unjustified
Amsterdam, 18 April 2007 - Heineken N.V. announced today that it has
received the decision of the European Commission stating that
Heineken and other brewers operating in the Netherlands restricted
competition in the Dutch market during the period 1996-1999. This
decision follows an investigation that commenced in March 2000.
As a result of its decision, the European Commission has imposed a
fine on Heineken of ¤219,275,000.
Heineken is highly surprised by the decision and finds the fine
excessive and unjustified given the strong arguments that the company
put forward to the European Commission.
The company disagrees with the suggestion made by the European
Commission that prices in the Dutch market were increased via
co-ordinated practices. The company demonstrated to the European
Commission that consumer prices in the off-trade (food) market
actually declined during the time period in question. In the
on-trade (horeca) market, the company's price increases were in line
with the CPI (Consumer Price Index). In addition, Heineken also
argued that in the Netherlands, it has absolutely no involvement in
the private label segment of the market, one of the areas that the
European Commission investigated.
Once it becomes available, Heineken will study the details of the
full version of the decision with the intention to appeal. The
company has two months and ten days following the receipt of the full
decision in which to file an appeal.
The imposed fine will be treated as an exceptional item in this
current year and will have no impact on the Heineken N.V. 2007
full-year forecast of 10-13% organic growth in net profit.
Pending any decision on its next steps, Heineken will refrain from
further comment.
Editorial information:
Heineken N.V. is the most international brewer in the world. The
Heineken brand is sold in almost every country in the world and the
company owns over 115 breweries in more than 65 countries. With a
Group beer volume of 132 million hectolitres Heineken ranks fourth in
the world beer market by volume. Heineken strives for an excellent
sustainable financial performance through marketing a portfolio of
strong local and international brands with the emphasis on the
Heineken brand, through a carefully selected combination of broad and
segment leadership positions and through a continuous focus on cost
control. In 2006, revenues amounted to ¤12 billion and net profit
before exceptional items and amortisation of brands amounted to ¤930
million. Heineken employs 57,500 people.
Heineken N.V. and Heineken Holding N.V. shares are listed on the
Amsterdam stock exchange. Prices for the ordinary shares may be
accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on
the Reuters Equities 2000 Service under HEIA.AS and HEHN.AS.
Additional information is available on Heineken's home page:
http//www.heinekeninternational.com.
Press enquiries
Véronique Schyns
Tel: +31 (0)20 52 39 355
veronique.schyns@heineken.com
Investor and analyst enquiries
Jan van de Merbel
Tel: +31 (0)20 52 39 590
investors@heineken.com