Deliver top line growth
I
10
Our business priorities (continued)
In 2017, we made good progress in building and leading the
premium segment, led by Heineken® and supported by our portfolio
of international and local brands, alongside our focus on
craft variety, low- and no-alcohol and cider category growth.
Report of the
Executive Board
Report of the
Supervisory Board
Financia
Statements
Sustainability
Review
Other
Information
Heineken N.V. Annual Report 2017
Our strategy is to lead the premium segment
in beer and cider across the world and leverage
the brand power of Heineken®, supported by a
strong portfolio of international premium and
local brands. As beer remains a local business,
our goal is to be the number one, or a strong
number two, in the markets where we compete
with a full brand portfolio. We will also continue
our focus on growing and leading the craft
variety, low- and no-alcohol and cider categories,
which is becoming more important as we drive
additional customer penetration and target
more households.
In 2017, Heineken® volumes grew 4.5% showing
one of its strongest performances in recent years.
Our international brands portfolio continued to be
a strong driver of volume and premium revenue
growth. The portfolio represents all corners of the
globe and includes Amstel (which is now available
in over 100 markets), Desperados, Sol, Tiger, Tecate,
Red Stripe, Krusovice and Birra Moretti.
The rise of the craft variety segment continues to
gain momentum as more people want to explore the
taste of beer. Craft variety is an important emerging
category within HEINEKEN that complements the
growing international premium beer segment.
We continue to innovate with products including non
alcoholic beer, low-alcoholic beer, Radlers, nourishing dark
malts and refreshing light malts. We launched Heineken®
0.0 during the Formula 1® Grand Prix in Barcelona
and it is now available in 16 markets - a clear sign of
commitment to the category. Our low-and no-alcohol
portfolio showed consistent double digit volume
growth in Europe.
We are capturing the cider opportunity and growing
the category. Our cider brand portfolio expanded to
over50 markets. Consumertrends play well to the
strength of cider, with its unisex appeal, naturalness,
authenticity, range of different flavours and sweeter
taste. We continued to shape the cider portfolio led by
Strongbow Apple Ciders, as well as Orchard Thieves, Blind
Pig, Old Mout, Stassen and Bulmers. Consolidated cider
volume increased low single digit to reach 4.9 million
hectolitres (2016:4.8 million hectolitres).
E-commerce and innovations continued to be important
for us. In 2017, we launched Beerwulf which is our new
craft variety online business channel for consumers.
We also introduced The Blade, a countertop draught
system with 8 litre kegsthat can be ordered online
for bars or smaller restaurants that traditionally only
sell bottles.
International brands
Ourinternational brands portfolio
strengthens our presence in the premium
segment by tapping into consumer
appetite for diversity, unique stories,
purpose, and new brand experiences.
In 2017, for instance we created the world's
f rst electronic orchestra in hot air balloons
with Desperados SkyFest.
a Heineken®
With a presence i n more than
190 markets, Heineken® is the world's
most international beer brand.
Craft variety
Consumers around the world are
seeking more choice and taste variety,
and it is important we have the right
brands available as consumers navigate
through a greater assortment of beer
styles. We have an attractive portfolio
of local craft line extensions such as
Brand IPAand Birra Moretti Regionale,
international craft brands that can
travel -Lagunitas,Affligem and Mort
Subite and selectively acquired local craft
breweries, for example HIBU in Italy and
Tuatara in New Zealand.
MOET
SBfiïIÏ
Low- and no-alcohol
Our low- and no-alcohol category is
benef ting from consumer trends towards
alcohol moderation, naturalness and
health consciousness. We have a growing
portfolio in the category made up of
distinct products. Our latest innovation
in thiscategory isHeineken®0.0.
Global cider portfolio
We are the world's biggest cider producer.
Around the world, a growi ng number of
consumers are discovering the appeal
of cider. HEINEKEN is shaping the cider
category with our portfolio of global and
local cider brands.
