Europe
Sales proceeds in Europe
were 1.6% lower at
NLG 6,464 million.
Earnings increased.
During the year under review the European beer market was
under pressure owing to the recession, considerable increases
in excise duty in various countries and less propitious weather
conditions in the second half of the year. The total market fell
by 5%. The non-alcoholic segment declined relatively
sharply, whilst the premium segment acquired additional
significance.
The creation of the internal European market has not
entailed any important changes for our enterprise. Viewed
over a longer term, European integration will be favourable
for us. It gives us the opportunity, in fact, to develop our
activities optimally throughout the European Union without
being hindered in doing so by different national regulations
and trade barriers of a technical nature.
Although we are in agreement with most of the regulations,
there are several developments which are a source of concern
to us. Thus the changes in European agricultural policy give
rise to unequal competitive relationships. In this context, in
fact, it was decided to let export rebates fall faster than grain
prices on the internal market. This means that artificial
differences in raw material prices arise between Europe and
the rest of the world. For companies which purchase their
barley, the principal raw material for beer, within the
European Union and sell their production outside it, this
constitutes a disadvantage.
The Netherlands
Spain
Greece
Italy
United Kingdom
Ireland
Other countries
Hungary
We welcome the conclusion of the GATT agreement, of
course, but deplore the fact that the agricultural component
of beer is not properly appreciated. This once again gives rise
to a form of distortion of competition. In point of fact, when
the zero rate has been reached in a few years' time and barley
prices in the European Union are still above the world market
level, breweries from outside the European Union will be able
to purchase barley at lower world market prices and then
offer the beer brewed with it for sale on the European market
without levies or import duties.
Another problem relates to the unequal treatment of wine
and beer, arising from the fact that on the basis of a European
arrangement a very low rate of excise duty - or sometimes
even a zero rate - is applied in a number of countries for
wine, whilst a minimum rate is applicable to beer. Both at the
European level and in the countries concerned, the brewing
industry has objected to this.
Finally, we take a negative view of the principle of state
monopolies for alcoholic beverages which has been accepted
by the European Union during the accession negotiations
with the Scandinavian countries. We believe that state
monopolies constitute an obstacle to free competition and do
not make any contribution to the combating of alcohol abuse.
Beer sales in Europe 1993
brewed under the
supervision of Heineken, per country
in millions of hectolitres
