These are agreements between breweries and custo
mers whereby the latter receive a number of mostly
financial facilities in exchange for the offtake of the prod
ucts of the brewery concerned. The European Commis
sion has concerned itself for some considerable time
with the possible restraint of competition involved in such
agreements. We hope that a satisfactory solution for the
legal position of these contracts will soon be found, lead
ing to a balanced relationship between the rights and
obligations of the respective parties.
The soft drinks industry continued its consultation with
the European Commission regarding a special directive
of its own. It is our hope that this will be introduced in the
course of 1981. It will enlarge the possibilities for the
trade in soft drinks within Europe and also provides a
legal guarantee for a proper composition of the products.
Once again, no progress was made during the past year
regarding the creation of a market regulation for alcohol
within the Community.
We are following with apprehension the plans of the
European Commission with regard to the harmonization
of excise duties. The differences between the European
countries in level of duty and in systems of levying are
not, in our opinion, at present a material obstacle to
inter-state traffic in beeraslongas not every fiscal/admin
istrative procedure has been abolished in the movement
of trade within the Community. Different taxation of com
peting products may, however, indeed have a distorting
effect. We are afraid that at the present moment too much
account is taken in European Community circles of the
position of wine, as a result of which there is a risk that
beer will come to find itself in a relatively unfavourable
position.
In 1980 the beer market in the Netherlands showed a
slight increase. Despite the less clement weather beer
consumption rose somewhat, namely from 84.9 to 86.4
litres per capita. In this market, which was characterized
by intensified competition, we managed to maintain our
share.
As a result of government price measures the selling
prices could not be raised sufficiently. Consequently the
cost increases could not be completely offset. Control of
costs is therefore more than ever essential. The measur
es taken hitherto have for the time being not been effect
ive enough. The efficiency and flexibility of the organiza
tion will have to be further increased.
The Netherlands soft drinks market was affected by the
poor summer months and the economic recession. Our
market share remained practically constant. The leading
brands, in which we hold a strong position with for exam
ple Pepsi-Cola, Seven-Up and Royal Club, enjoy an
increasing interest on the part of the quality-conscious
consumer. In particular, our own brand Royal Club per
formed well with products such as tonic, bitter lemon and
shandy.
In order to strengthen our position in the soft drinks
market, the launching of a number of new products is in
course of preparation.
In consultation with the government authorities, the Ne
therlands soft drinks industry has made proposals for the
introduction of a compulsory deposit arrangement with
regard to packaging made of glass or plastic.
The spirits market in the Netherlands showed an un
balanced trend. This was a consequence of the early
announcement of the sharp increase in excise duty to
take effect from January 11980, which led to exceptio
nally large purchases towards the end of 1979. Owing to
this buying surge the sales in 1980 dropped conside
rably.
Our new grapefruit liqueur Paradisi is meeting with grow
ing interest both in the Netherlands and abroad.
Partly as a result of the rise in imports of foreign products
we foresee little growth for Dutch spirits in the years
ahead.
In the wine sector we represent mainly quality wines. The
sales of these proceeded satisfactorily. We are endeav
ouring to expand our position in the segment of plain
wines, too.
The reorganization started in the previous year of the
marketing apparatus for the hotel, restaurant and café
sector, in which our full range of products is sold, has
now been introduced throughout the country. As a result
we are closer to the customer and the rendering of ser
vice can be improved. We expect positive effects from
this in the years to come, as well as from the greater
involvement of the marketing apparatus in the course of
affairs in the area concerned.
Numerous extensions took place in the brewery at Zoe-
terwoude. The investments include the installation of
eight brew-kettles and the doubling of capacity of the
filling plant for barrelled beer.
We are studying the possibility of installing a heat/power
plant at Zoeterwoude for the co-generation of heat to be
used in the brewing process and electricity. In this way,
through arrangements with the government authorities,
we can also be assured in the longer term of the supply of
the necessary natural gas. If at a certain moment it is not
required in the brewery itself, the electricity generated
can be supplied to the public grid.
As the employers' and workers' organizations in the
Netherlands could not reach agreement on voluntary
wage restraint, the Government curbed the growth of
wage costs in 1980 by means of specific measures.
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