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. 

 

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.