15 Regional developments Europe In Europe, apart from the beer brands Heineken and Amstel, a number of national and international brands are brewed. The enterprise has breweries in the Netherlands, France, Spain, Italy, Greece and Ireland. In addition, Group brands are brewed by independent licensees in Britain, Norway and Sweden. Soft drinks are produced in the Netherlands, France and Italy. Production of spirits takes place in the Netherlands. Wines, spirits and aperitifs are marketed in the Netherlands and France. Exports from the Netherlands, especially of beer, occupy an important position in our activities. A recurrent theme in 1988 was the creation of the internal market within the European Community, which according to the plans is due to be achieved in 1992. Heineken has already been active for some considerable time in many important European markets, in many cases with its own breweries. Adjustment to the new situation will therefore not mean a drastic process for the enterprise and will be able to take place by gradual means. By using our brands, market positions and production and distribution facilities in the most efficient manner we shall make optimum use of the possibilities presented by European integration. In addition, we expect increasing competition, also from non-European enterprises. In point of fact, a large European market may be attractive to enterprises which have not been active hitherto in this part of the world. In 1988 a general definition of the product 'beer', which may contribute towards maintaining quality, was developed by the organization of European brewers. Efforts are being made to gain acceptance for this definition at the national and the European level. The proposals by the European Commission regarding the harmonization of excise duties on alcoholic beverages are still subject of discussion. The consequences of these proposals differ widely in the various countries where we have establishments. We accordingly advocate a very gradual introduction of the changes in question, ensuring that the relationship between rival products is not distorted. Towards the end of the year under review a trade conflict again arose between Europe and the United States. Although the exports of our products are not suffering from this, as an international enterprise we deplore the existence of such dissensions, especially as the danger of escalation is great and this would not benefit any of the parties concerned. The Netherlands Beer consumption per capita in the Netherlands fell in 1988 from 84.3 litres to 83.3 litres. Imports of beer rose, whilst there was an increasing segmentation of the beer market which is leading to a greater consumer interest in other types of beer. Sales in the lager segment were consequently under pressure. Our operating company Heineken Nederland B.V. was virtually able to maintain the sales of bottled beer, but as a result of the higher imports of beer specialties there was a slight decrease in sales of draught beer. Total sales and margins were consequently under pressure. The sales of Brouwerij de Ridder B.V., Maastricht, continued to do well. In April Amstel Light was introduced. This beer, with a lower alcohol content and fewer calories, was well received by both the trade and the consumer. In September we launched Buckler, a beer with a very low alcohol content; market reaction was positive and sales exceeded expectations.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 1988 | | pagina 27