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.