Heineken Announces Reorganisation and Invests in Breweries in France

30/05/08 Heineken N.V. announced an investment in its breweries in France and a reorganisation of its production units in order to drive efficiency improvements. The reorganisation will further focus Heineken’s business in France on the branded and growing premium segments of the market.
 
The reorganisation includes:

* An investment of EUR 124 million over the next three years to upgrade the breweries in Mons-en-Barœul (North of France), Schiltigheim (Alsace) and Marseille
* The closure of Brasserie Fischer in Schiltigheim by the end of 2009 and the gradual transfer of its production to the l’Espérance brewery in Schiltigheim
* The sale of the Saint Omer brewery, the non-branded beer business

The exceptional restructuring costs associated to the reorganization will be charged to the 2008 and 2009 consolidated profit and loss accounts and will be recovered in 3 years after completion of the program. For 2008, these restructuring costs are included in the F2F program. For 2009, Heineken forecasts additional assets write-off of approximately EUR 20 million, which will be treated as exceptional items.
 
It is expected that the total reorganisation will lead to 126 job losses in Alsace and 62 in Mons-en-Barœul by the end of 2010. Heineken will collaborate with the trade unions to offer impacted staff a sound social support programme. Regarding the sale of the Saint Omer brewery, negotiations are under way with its former owner and current chairman. This transaction will not impact current jobs or activities of the Saint Omer brewery.