should not be detracted from by European policy in this
In the past we have frequently advocated the introduction
of special regulations per product, including beer and soft
The present approach by the European Commission to the
creation of a single internal market implies that such a
vertical directive will only come about in very few cases.
Regulations relating to raw materials, additives, production
methods and labelling, applicable to a large number of
products, will now have to ensure the maintenance of the
level of quality and the provision of meaningful information
to the consumer.
Another subject of importance to our industry is the new
approach to European agricultural problems put forward
by the European Commission in the 'Green Paper'. Our
industry is incessantly demanding attention to two essen
tial elements of this, namely the availability of the necessary
quantity of raw materials of the required quality at a
reasonable price and the possibility of being able to
continue to compete on the world market on the same cost
price conditions for raw materials as our competitors.
It is therefore vitally important to maintain the principle that
the consequences of the European agricultural policy
should not bear on industries which market agricultural
products in processed form outside the Community.
During the year under review the European directive
regarding packaging for beverages was approved by the
Council of Ministers. A lengthy procedure with intensive
consultation between all concerned has resulted in the
existence now of a directive which provides the possibility
of following a meaningful policy in the field of packaging,
environment and energy without denying industry, trade
and users the advantages of the many forms of pack
In order to implement the policy for the creation of a single
integrated internal market the Commission has also made
proposals with regard to excise duties. In the first instance
they envisage the removal of the obstacles to trade which
would exist as a result of the various systems of levying
excise duty in the member states. In the majority of the
member states - including the Netherlands - the determi
nation of the beer duty payable takes place during the
production process, an objective method to arrive at the
correct levying of duty. A change-over to a system of
levying on the end product, as is the case in some countries
and as has been repeatedly advocated by the Com
mission, would entail many disadvantages. Constant
efforts are being made at the European level to create the
possibility for the two systems to continue to co-exist in the
Community, without thereby distorting competitive relation
In the Netherlands the 'Foundation to encourage the
Responsible Use of Alcohol' (STIVA) was set up a few years
ago by the alcoholic beverages industry; its activities are
aimed at preventing the abuse of alcoholic drinks. In 1985
an information campaign was conducted by means of
television advertising, newspaper advertisements and
leaflets. Having regard to the good progress of self-
regulation by the branch of industry in the Netherlands, we
regret that the ministerial 'Draft Memorandum regarding a
cohesive policy of restraint in the use of alcohol', which
appeared at the end of 1985, nevertheless gives preferen
ce to statutory measures. Our objection is all the more
cogent because on the basis of experience in other
countries the statutory measures referred to in the Memo
randum will not prove effective in preventing abuse of
alcohol. In addition, we find it disappointing that no
distinction is made in the Memorandum between abuse
and a responsible use of alcoholic drinks.
Output of beer per capita rose from 83.0 litres in 1984 to
84.2 litres in the year under review. It cannot be concluded
from this that the total beer market has increased. The 1984
picture was in fact distorted by additional stocking-up in
the previous year in anticipation of the increase in excise
duty as from January 1, 1984.
The poor summer again had a detrimental effect on beer
consumption. Sales by Heineken Nederland BV were more
or less in line with the trend of the total market.
In the take-home sector there was some decrease in 1985
in competitive pressure from the cheaper brands. Conse
quently there was only a marginal decline in this sector in
the market share of the quality beers sold by us.
Beer sales in the 10-litre 'Heineken Thuistap' (Home
Draught), which were started in the previous year through
the retailers channel, showed a positive growth in 1985.
Our share in the hotel, restaurant and café market re
mained stable in the year under review.
The total earnings of our Netherlands operating company
were somewhat improved owing to a slight increase in
volume and the possibility of passing on certain cost
increases in prices.
It was decided also to market the Limburg brand 'De
Ridder' in the other parts of the country. The capacity of the
brewery in Maastricht will be expanded for that purpose.
In the field of packaging and the environment, a common
code of conduct has been arrived at between the govern
ment authorities, the packaging industry and user groups.
In that connection agreement has been reached on the
limitation and where possible reduction of the flow of waste,
as well as on the responsible use of packaging mate