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Beer sales in the Netherlands
(in millions of hectolitres)
1977/78 P
1976/77 F
6.8
6.6
1975/76
1974/75
1973/74
6.6
5.9
5.6
Operating areas
Netherlands
Some years ago we already stated that a slower
growth in beer consumption per capita would have
to be expected than was the case in the years
immediately after the Second World War.
The sales in the past year have again confirmed
this expectation. As a product, beer has already
achieved such a large degree of general social ac
ceptance that a substantial further increase in the
number of beer consumers is not to be anticipated.
The effects of weather in the summer period only
have a limited influence on consumption in the
Netherlands. The effect of poor summer weather
during the year under review is estimated by us at
approximately 200,000 hectolitres. Although this
loss of sales is negligible in proportion to the annual
sales volume, it must be noted that the profit con
tribution of these 'peak' hectolitres is bigger than
that of the average hectolitres.
Beer consumption in the Netherlands was 84.9 li
tres per capita, compared with 83- litres in the
previous financial year.
Our enterprise managed to enlarge its national mar
ket share fractionally from 57.6% to 57.9%.
The stagnant economy, the developments in the
beer market itself and the ever-rising costs have
increased the pressure on margins. Internal cost
control will therefore have to be intensified to an
even greater degree. In the years ahead the ef
ficient use of resources as well as a still further
increase in our ability to make a quick response will
have to occupy a central position in our market
approach.
The effectiveness of our organization is determined
to a considerable extent, amongst other things, by
the relationship which we maintain with our cus
tomers. The guiding principle in the contacts with
our retailers is the joint interest which the manufac
turer and the trade have in being able to present our
products as efficiently as possible to the consumer.
The continuing cost increases in the channels of
trade necessitate further concentration, a con
centration which has recently been taking place
more between multiple stores and commercial or
ganizations instead of, as previously, between indi
vidual wholesale firms. Our approach to the
foodstuffs channels has accordingly undergone a
further adjustment in order to make it better attuned
to our customers.
In the previous Annual Report it was already an
nounced that our method of operation in the hotel,
restaurant and café market would be more regio
nal. The object of this new arrangement is to en
sure, as our enterprise becomes bigger, that the
close and often personal links between our selling
staff and the customers in the hotel, restaurant and
café sector are maintained. As a first step in this
direction, the Limburg regional marketing organi
zation became operational during the year under
review. After sufficient experience has been
gained with this new form, steps will be taken to
introduce it in phases throughout the country.
In the Dutch soft drinks market the consumption of
fruit juices and mineral water is increasing sharply,
whilst the declining trend in the sale of fruit lemo
nades has continued for several years.
The sales of cola and lemon/lime drinks continued
to develop satisfactorily, in which connection it may
be noted that the cola drinks now constitute the
largest flavour segment of the soft drinks market.
The market shares of Pepsi-Cola, Seven-Up and
the products sold under the Royal Club brand were
further improved. In particular the sales of Shandy
were good.
In the fruit juices market we aimed especially at the
hotel, restaurant and café trade with the B3 prod
ucts.
In order to be also represented in the strongly
growing mineral water market, we purchased a min
eral water source at Harre in the Belgian Ardennes.
In August 1978 this mineral water was introduced
under the name PUR.
In the fruit lemonades sector we maintained the
policy of not joining in the disastrous price war.
In the past year our soft drinks group was again
able to achieve some improvement in its market
share in the total soft drinks market.
In the light of the above we can be reasonably
satisfied with the earnings of the group.
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