Africa, Middle East
and Eastern Europe
13.6%
0% BKYCA
15
40.1 mhl
18.4%
5.2mhl
€3,059m
€388m (2016: €376m)
9.9% (2016:10.5%)
o% AJiKorojin
Regional Review (continued)
We saw an acceleration of volume growth, despite a challenging
trading environment across the region. Growth was particularly strong
in Ethiopia, South Africa and Russia.
4
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
♦•IT
Key brands
Heineken®, Primus, Amstel, Walia, Ivoire
Regional revenue (beia) as of total
(2016:38.4mhl) IO.M/0 (2016:19.2%)
Consolidated beer volume Consolidated beer
volume as of total
Heineken® volume
(2016:4.6mhl)
Revenue (beia)
(2016:€3,203m)
Operating profit (beia)
Operating profit (beia) as of total
In 2017, macro economic challenges continued in
the region. Rising inflation and currency pressure
weighed on performance, particularly in Nigeria and
Egypt. Despite this, 2017 marked a return to positive
volume growth in the region.
Heineken® performed well in South Africa with
double digit volume growth and Strongbow saw
triple digit growth. In Sedibeng, South Africa, we
invested in additional capacity. In Ethiopia our
Walia brand had continued success with double
digit volume growth and consequently, we are
extending our Kilinto brewery to add 1.5 million
hectolitres capacity. In Russia, we saw strong
performance of Heineken® 0.0.
Our balanced portfolio of premium, mainstream
and economy brands continues to be part of our
success in the region. We continued to invest in
our existing brands and in product innovation.
Following the successful launch of Ivoire, we also
launched Mützig in Ivory Coast and, to support our
strong growth in the country, we have invested in a
new bottling line.
At the end of last year we commenced the
construction of HEINEKEN's first brewery with the
latest technologies in Mozambique, which is a major
step forward for our presence in the country.
Hard currency shortages and devaluations in Africa
have increased demand for local raw materials, which
has put pressure on both availability and pricing.
Our 2017 local1 sourcing percentage dropped
to 42%2, primarily because of a reduction in the
availability and quality of sorghum in Nigeriainthe
early part of the year. We continue to invest in local
sourcing to reach ourtarget of 60% in 2020 and
positively contribute to the communities where
we operate.
1 More than 80% of local raw materials are sourced domestically,
with the remainder coming from other markets within the region.
2 Estimate.
First HEINEKEN brewery
in Mozambique
In December 2017, we laid the foundation
stone of our frst brewery in Mozambique.
This new brewery, incorporating the latest
technologies, in the province of Maputo, will
have a production capacity of 0.8 million
hectolitres. The first bottle of beer is
expected to come offthe production line
in the frst half of 2019. Aligned with our
ambition of sourcing 60%ofouragricultural
raw materials locally in Africa by 2020,
HEINEKEN Mozambique is exploring
the possibility of locally sourcing the raw
materials it will need to produce its beers.
Successful launch of
Heineken® 0.0 in Russia
In Russia, Heineken® 0.0 has been very
well received by consumers since its
successful launch in 2017. Due to the
strong Heineken® brand recognition
in Russia and effective TV and digital
campaigns for Heineken® 0.0, we are
shaping the non-alcoholic beer segment
in the market and making responsible
beer consumption aspirational.
Local sourcing project
for rice in Ivory Coast
At the end of 2017, we launched the
Korhogo Rice Sector Performance
Improvement (KRISPI) pilot
project, which is a partnership
between Deutsche Gesellschaftfur
Internationale Zusammenarbeit (GIZ)
GmbH, Fair Match Support, Office
National de Développement de la
Riziculture, Société Conseil Organisation
et Management de Cote d'Ivoire
and HEINEKEN. The KRISPI project
ai ms to help the local rice farmers to
increase their livelihood and Brassivoire,
our brewery in Ivory Coast to secure
sufficient quantities of broken rice to
use in beer production. The broken rice
is a by-product of rice processing, which
is not widely used as food.
View
case
study
online
