For marketing and organizational reasons it was decided during the year under
review to regard Benelux as a single market.
The examination of the potential which the Belgian market, in particular, offers for
the sale of our products is being continued. In this connection special attention is
being paid to spirits.
Beer
Total beer consumption in the Netherlands rose during the year under review by
6.7%. This increase was lower than in the previous year (11.6%) and was somewhat
below our expectations. The per capita consumption rose from 61.2 litres in 1970/1971
to 64.7 litres in 1971/1972.
The slowing-down in the growth of Netherlands beer consumption is mainly due
to the poor weather in the summer of 1972. Sales of bottled beer rose rather more
than those of draught beer.
Beer sales by the concern in the domestic market increased by 6.7% from 4,441,000
hectolitres in 1970/1971 to 4,739,000 hectolitres in 1971/1972.
An increasing and intensified price competition was evident in the Netherlands beer
market during the year, partly from foreign sources. It is gratifying that in spite of
this the share of the concern in the domestic market was maintained.
It continues to be our expectation that the per capita consumption will increase in
the longer term, also bearing in mind the consumption in the neighbouring coun
tries.
Soft drinks
The overall soft drinks market in the Netherlands showed an unsatisfactory develop
ment during the year under review. The per capita consumption did not rise during
the year under review. The less prosperous state of affairs in the soft drinks sector
is due to a combination of negative factors, i.e. the bad summer of 1972, the less
favourable economic development and, not least, the introduction of an excise duty
on soft drinks which led to not inconsiderable price increases. This introduction
took place in two stages, namely as of January 1 and as of September 1, 1972. The
second stage therefore only affected the year's results for a period of one month.
The pattern of turnover for Vrumona was more favourable than that for the market
as a whole. Sales were at a somewhat higher level than in the previous financial
year.
The Netherlands soft drinks industry is faced at present by a considerable over
capacity which has arisen through the anticipation of a continuation of the increase
in turnover evident in recent years. This circumstance, combined with the above-
mentioned unfavourable factors, has led to keen price competition, which has of
course affected profitability.
