Chief Executive's Statement continued
Contents
Overview
Report of the
Executive Board
Report of the
Supervisory Board
Financial
statements
Other information
Heineken® and our other global brands
Heineken® continues to lead in the International Premium
Segment and we saw a solid performance in a number of key
countries such as Nigeria, South Africa, Russia, Chile, Brazil and
South Korea. And for the first time we surpassed 1 mhlforthe
Heineken® brand in China. However, the performance of Heineken®
was not at the level we have become accustomed to. This was
driven almost exclusively by lower growth in key markets such as the
U.S, Vietnam and France. We are confident that these markets
continue to represent positive growth opportunities for the
brand. Alongside Heineken®, we continued to invest in our global
portfolio of premium brands-Amstel Premium Pilsener, Strongbow
Gold cider, Sol and Desperados. Over time, our intention is to
grow these brands using our unigue geographic spread.
Transformation of ourglobal footprint
For a number of years, we have invested in the geographies and
segments that offer significant opportunities for future growth.
During 2013, we completed the integration of Asia Pacific
Breweries within HEINEKEN Asia Pacific. The business continues
to perform strongly. In May, we announced a new greenfield
brewery project in Myanmar and we have continued to invest
in capacity expansion projects in Papua New Guinea and
Vietnam.
In Mexico, we gained share and increased profitability. In Africa
Middle East, we continued to invest in capacity expansion projects
in Nigeria, Ethiopia and the Democratic Republic of Congo.
Despite the slower pace of growth in some emerging markets
in 2013, we are confident in the long-term growth prospects of
these markets. Our continued investment means that as growth
accelerates, our brands and businesses will be in a strong position.
Capitalising on the value of Europe
Europe remains a dynamic region. We are focused on effective
revenue growth management and a continued disciplined
approach towards driving down costs. The region has become
the Company's innovation hub. Through leveraging our leadership
positions, strong distribution network and relationships with
retailers, we have been able to launch record numbers of new
products in a matter of months. This, combined with higher
commercial investments, will continue to strengthen our market
positions across the region.
Fighting for the category
The brewing industry is a vibrant, important contributor to
economic and social life in many countries across the globe.
However, in difficult financial times governments search to find
ways of raising additional revenues. Whilst we expect to pay our
share, for our industry this invariably means disproportionate
increases in excise and other taxes.
This puts an even greater financial burden on the brewer and
increases prices for consumers. The reality is that such measures
have a negative impact on investment and jobs across the
agricultural, brewing, hospitality and associated industries.
We have thus been more active in engaging governments and
sharing with them the economic and social impact of excessive
taxation. We have seen some positive outcomes from our efforts
and we will continue to fight our case.
Brewing a Better Future
In the middle of the year, we recognised the importance of
sustainabilityto our future by identifying Brewing a Better Future,
our global sustainability strategy, as a core business priority.
From water to C02 emissions and from sourcing to responsible
consumption we are using our global scale throughout our value
chain to find ways to make a positive impact in the communities
where we operate and in society as a whole.
Company Rules
Nothing is more important than ensuring that we all work in
accordance with the values that have made the Company so
successful. We want to win and we want to do so the right way.
In 2013 we began the process of training our employees to fully
understand what is expected from them via our renewed Code
of Business Conduct. It is important that all our employees are
eguipped to make the right decisions, whatever their role and
wherever they may operate.
Thank you
As I do every year, I want to thank all my colleagues around the
world for their professionalism and commitment. It has been a
challenging year but the passion for the business and the desire
to win the right way remains as strong as ever. It is a privilege to
work with such a dynamic and diverse group and to lead this
exceptional Company. I would also like to thank every one
of our consumers who make the choice to enjoy our brands,
our business partners for their continuing support and all our
stakeholders for their input into what we do and how we do it.
Jean-Franqois van Boxmeer
Chairman of the Executive Board/CEO
Amsterdam, 11 February 2014
Heineken N.V. Annual Report 2013