In general it can be said thai the financial results of many of our customers in the
hotel and restaurant trade ha ve been affected by the price rises caused by the intro
duction of the value added tax and the increase in excise duty. We stronedy advocate
a reduction of the value added tax for the hotel and restaurant trade, with regard to
food and drinks, from 12% to the lowest rate-namely the 4% which is also applicable
to accommodation. Whilst on the one hand the wages and social security provisions
in this sector are being raised to the level of industry at an accelerated pace, the Go
vernment authorities are rendering an often urgently necessary adjustment of prices
impossible by their stringent supervision of the way in which prices are determined.
It is logical that this deadlock has prompted us to continue with the development of
new ideas for the benefit of the hotel and restaurant trade, thereby seeking to make
a positive contribution toward improving the return on the capital invested in this
branch of business.
As regards spirits it can be reported that the distilleries in which we participate have
achieved satisfactory results.
In the soft drinks sector it is noteworthy that the per capita consumption, which
had already reached a level of 43.5 litres for the calendar year 1968, showed a rise of
26% up to the end of August 1969, compared with the same period of 1968. Vru-
mona N.V. has more than maintained its position in this growth. In this market
there is a clear trend towards larger containers. By an aggressive marketing approach
in the light of these trends, Vrumona has developed satisfactorily in the financial
year 1968/1969, as regards both turnover and earnings.
Vrumona N.V.'s earnings are included in the consolidated Profit and Loss Account
appearing on page 18.
techxicat division During the year under review a total of about 4.5 million hectolitres of beer was
produced in the Heineken and Amstel breweries in the Netherlands. Nearly 3.5 mil
lion hectolitres (approximately 78%) was sold in the home market, whilst more than
1 million hectolitres (approximately 22%) was exported.
With regard to the plans for demolition and reconstruction of the brewery at Rotter
dam the question was raised whether it was still justified, in view of the present
trend towards increase of scale, to set up a production unit which would probable
have reached its maximum capacity within the not too distant future, owing to the
limited area of the site available.
We decided to abandon the reconstruction plan and to set up production facilities as
close as possible to the present establishment at Rotterdam, in so far as the demands
to be made on the site would allow.
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