SPIRITS
There was only a very small growth in the total market for spirits in the Nether
lands in the first nine months of the year under review. This was mainly reflected
in the sales of Dutch spirits as a result of the favouring of foreign products, to
which no floor price or minimum price was applicable.
After the end of June 1977, when as a result of price competition the fixed
consumer prices for several kinds of Dutch spirits were in practice no longer
maintained, there was a slight improvement in sales.
In our previous Annual Report we drew attention to an additional increase in
our sales and in our market share. This proved to be largely a consequence of
excessive stocking-up.
We have not succeeded this year in entirely maintaining our market share.
The earnings of Gedistilleerd Groep Nederland, in which our spirits activities
are combined, were at a lower level than was foreseen.
With Jagermeister we were able to maintain our position in the herbal bitter
market, on the basis of an unchanged price level.
A start was made on the implementation of the plans for construction of a new
distillery together with a grain alcohol plant at Zoetermeer. The first pile is due to
be driven early in 1978. Production is expected to commence in mid-1979.
The capital investment will be over N.fl. 60 million.
The existing production units in Schiedam (Coebergh) and Rotterdam (Hoppe,
Hulstkamp, Meder) as well as the warehouses of the Rotterdam wine firm
Reuchlin will be concentrated in these new buildings.
WIN E
Our sales of table wines and aperitifs imported in bottles again increased.
Sales of wine under the Bistro brand and also of fruit-based wines were under
pressure as a result of very keen price competition.
Following the launching of the Garvey sherry range, which took place early in
1977, sales are developing according to expectations.
There was an increase in the market share of the egg liqueur 'Advocaat' sold
under the Zwarte Kip brand.
The reorganization of our wine sector, mentioned in the previous Annual
Report, was completed.
Sales of the range of proprietary brands marketed by Van Olffen B.V. were
combined with the activities of Wijnhandel Reuchlin B.V. in a new unit set up
for that purpose at the beginning of the new financial year, Wijngroep Neder
land B.V.
PERSONNEL
The extensive negotiations on the Collective Labour Agreement for 1977 with
the Industrial Unions of the Socialist Trade Union Federation (N.V.V.), Catholic
Trade Union Federation (N.K.V.) and Protestant Trade Union Federation
(C.N.V.) and the Union of Clerical, Supervisory and Executive Staff (B.L.H.P.)
took place in an atmosphere of understanding for respective standpoints and
were concluded with a positive result.
Despite the high unemployment figures it was once again very difficult this
year, especially for our two Amsterdam breweries, to meet the need for personnel
in the production sector.
The percentage of foreign employees in the total number of personnel of our
establishments in the Netherlands remains considerable. In point of fact, of the
production workers covered by the Collective Labour Agreement 19% are of
non-Netherlands nationality.
The degree of absence owing to sickness continues to increase. In several
establishments a further investigation into the causes of such absence has
been carried out.
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