Developments by country and region
Europe
Heineken is the largest brewery company
in Europe. We have excellent market positions in
several major beer markets. These positions were
further reinforced and expanded in 1997.
Heineken is Europe's undisputed number one
beer brand. Once again in 1997 we increased the
brand strength and sales of Heineken. Amstel,
our second beer brand in Europe, also realized
higher sales.
The Group seeks to increase growth of its
corporate brands while expanding market
positions and controlling costs. Thanks to these
successful strategies we have achieved higher
net turnover and a higher result in Europe.
The contributory factors here were an improved
sales-mix, cost controls, lower purchasing prices
for raw materials and packaging materials and -
certainly not least - the concrete benefits of
acquisitions in France and Italy. This adds up to
a strong situation, setting Heineken apart, in a
positive sense, in the context of a stable European
beer market. Concentration within the home-
consumption segment of the European market,
a growing market share of low-priced beers,
and declining sales in hotel, restaurant and café
trade are exerting pressure on prices and margins
for the beer industry in general.
The Netherlands
Beer consumption in the Netherlands was slightly
up on last year. The importance of specialty beers
increased again. Amber beers are particularly
successful, while white beers appear to have
peaked. The share of non-alcoholic beers was
down again. Lager continued to dominate the
Dutch beer market with an 88% share.
Heineken Nederland realized a further
increase in sales volume while the result rose
favourably. We maintained the market share
satisfactorily in a competitive market climate.
Cost controls and lower purchasing prices kept
margins intact with unchanged selling prices.
The Heineken brand successfully defended
Total export volume
worldwide
in millions of hectolitres
Geografical
breakdown of personnel
in numbers
7-5
16,000
14,000-
8,000
6,000 -
4,000-
1997
1996
1995
1994
1993
1992
1991
1990
1989
The Netherlands 5,791
Rest of Europe 13,998
Western Hemisphere 729
Africa 6,420
Asia Pacific 5,483
HEINEKEN N. V.
REPORT OF THE
EXECUTIVE BOARD
19 9 7
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