Chief Executive's Statement
2016 was another strong year for HEINEKEN despite a tough economic environment,
significant currency fluctuations and geopolitical instability. Organic revenue grew by
4.8% with revenue per hectolitre up 2.2%. In addition, our operating profit (beia) grew by
9.9%, Diluted Earnings Per Share (beia) increased by 2.9% to EUR 3.68, and we delivered
a margin expansion of more than 50 basis points.
We benefited from our unique diversified footprint. Whereas our Africa, Middle East
and Eastern Europe region was negatively affected by adverse economic circumstances,
Europe, Asia and the Americas performed well, with Vietnam and Mexico
The Heineken® brand grew 3.7%, with positive volume performance across all regions.
Innovations under the brand include the new 'wild lager' beers H41 and H71, which
were launched in selected markets in Europe. In addition to our UEFA Champions
League, Rugby and James Bond sponsorships, we announced a five-year partnership
with Formula 1® in May. The partnership allows us to connect with more consumers,
particularly in high growth markets, and to build a bold responsible marketing campaign.
In the next five years, we will commit EUR 200 million and our best marketing brains to
reinforce our 'When You Drive, Never Drink' message with campaigns in markets around
Our International Brands portfolio outperformed overall portfolio growth. Amstel, which
now sells in more than 100 markets, reached 11.5 million hectolitres and is a challenger
in its segment. Tecate and Tiger delivered stellar growth. Tiger reached the 10 million
hectolitre milestone much earlier than anticipated and expanded sales to a total of
almost 60 markets. Both Tecate and Tiger are connecting with consumers through the
positions they are taking on things that matter to these brands and consumers alike.
In the last two years, our Cider portfolio has grown from 25 markets to now being
enjoyed in a total of 41In 2016, the UK, the home of ciders, also grew. Overall, our
consolidated cider volume grew to 4.8 million hectolitres. The growth of cider has been
fuelled in particular by Strongbow Apple Ciders, our flagship brand, but is also supported
by the growth of our other cider brands, including our newest, Orchard Thieves, and the
continuous ingredient and flavour innovations of the portfolio.
We see a lot of potential for our low- and no-alcohol portfolio, which in 2016 reached
a consolidated volume of 12.3 million hectolitres. The portfolio continues to develop
with new innovations that expand consumer choice. We are learning a lot from brands
like Amstel, Fayrouz, Bintang and Cruzcampo and in markets like Nigeria, Indonesia
and Spain where this part of the business is thriving. In 2016, Radler extended beyond
European markets into Mongolia, Egypt and Chile and Radler 0.0% launched in
five markets. We see a lot of opportunity for growth and are very excited to launch
Heineken 0.0 in 2017.
In 2016, HEINEKEN continued to invest in key developing markets. We added capacity
in Ethiopia and Cambodia. We opened a brewery in Shanghai, acquired a brewery
in Vietnam, and we are building a new brewery in Mexico.
Report of the
Report of the
Annual Report 2016