production capacity will be over 3.5 million hectolitres, compared with 1.5
million hectolitres when the brewery came into operation in 1975.
Agreement was reached with the 'Rijnland' Polder Board regarding expansion
of the waste water purification plant.
In view of the transfer of the Nation-wide Commercial Departments to Zoeter-
woude, a start was made on the extension of the office building at the establish
ment there.
Modernization of the brewery on the Mauritskade in Amsterdam calls for in
vestments which will exceed the figure of 100 million guilders. There would,
of course, only be any point in proceeding to such investment if the long-term
operation of the plant is guaranteed. Serious doubt has arisen in our mind on
this aspect, partly in the light of the draft zoning plan for the Mauritskade and
vicinity which has been laid open to inspection by the Municipality of Amster
dam. Having regard to the basic assumptions for the reconstruction of this
residential area, the continuation of an industrial enterprise such as a brewery
may, in our opinion, entail insuperable problems.
We have submitted a statement of objections to the proposed plans of the Muni
cipality of Amsterdam.
Discussions on the problems involved are being held with our Staff Councils,
the employee organizations and the Municipal Council of Amsterdam. In this
connection a study is in progress, dealing inter alia with the question of how
the capacity would have to be replaced.
It goes without saying that the interests of the employees in the Mauritskade
establishment constitute an important element of this study.
These problems do not arise to the same extent for our establishment in Am
sterdam on the Van der Helststraat. For the time being there are no definite
zoning measures for this neighbourhood. Furthermore, we are not confronted
here with the necessity of making substantial investments.
soft drinks The situation in the Netherlands soft drinks industry is causing concern. During
the year under review the total domestic sales of soft drinks and fruit juices were
below the level of the previous year, partly as a result of the poor summer.
The shift in the various market segments, to which reference was already made
in our previous Report, was continued.
The share of fruit juices (containing 100% fruit juice), cola and lemon-lime
drinks (containing vegetable extracts) continues to increase.
The market for fruit lemonades (containing 10% fruit juice) is still characterized
by an intense price war. The prices in this sector fell to a level which is lower
than that of several years ago.
Although the earnings of our soft drinks group were below expectation, it was
able to achieve a slight improvement in its position in the total market.
In the fruit lemonades sector there was a decline in our market share as a result
of our policy of not joining in the price war in this market.
The positions of the Royal Club, Pepsi-Cola and Seven-Up brands were
strengthened. Precisely in this sector the demand increased.
Sugarfree Seven-Up was successfully launched.
Following its introduction in 1976, demand for Royal Club Shandy was well
sustained. This product, composed of beer and lemonade, was recently also
put on the market in cans.
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