Europe
45.4%
18
78.8mhl
36.1%
13.8mhl
€10,237m
€1,371m (2016: €1,261m) 35.1% (2016:35.2%)
Regional Review (continued)
The region delivered another strong year. Our strategic focus on
operational excellence, premiumisation and innovation, alongside
further sales increase in bars and restaurants translated into revenue
and profit growth.
ïïchnusül
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
Key brands
Heineken®, Cruzcampo, Birra Moretti,
Zywiec, Strongbow
Regional revenue (beia) as of total
(2016:78.6mhl) JU. I /0 (2016:39.3%)
Consolidated beer volume Consolidated beer
volume as of total
Heineken® volume
(2016:13.4mhl)
Revenue (beia)
(2016: €10,112m)
Operating profit (beia) Operating profit (beia) as of total
Beer volumes across Europe grew moderately,
but key markets including France, Italy, Spain
and Portugal delivered a particularly strong
performance. Our strategy of focusing on further
premiumisation and innovation supported margin
expansion, while our operational performance was
helped by continuous cost management.
Beerwulf
Beerwulf, our online craft variety
e-commerce platform, isa great example
of our e-commerce strategy, andhasbeen
successfully launched in the Netherlands,
Belgium, UK, France and Germany.
During 2017, HEINEKEN Netherlands entered into
a strategic partnership for its Beer Cider logistics
in the Dutch Out-of-Home market with Sligro Food
Group N.V. (Sligro). Simultaneously, HEINEKEN
Netherlands divested its wholesale operations for the
other (non-Beer Cider) product categories to Sligro.
As part of our strategy to selectively expand in the craft
variety segment, HEINEKEN entered a partnership
in the UK with Brixton, a London based craft brewery,
and in Italy we acquired craft brewery HIBU.
Poland decreased in beer volume partially due
to fewer promotions at retailers. The UK also
experienced a decline as a result of a partial
delisting by a large customer.
Our UK pubs business continued to perform well and in
2017 we completed the acquisition of approximately
1,900 pubs from Punch Taverns. HEINEKEN now owns
the largest pubs business in the market and, more than
ever, this route to market is a key aspect of our strategy
We launched Heineken® 0.0, demonstrating our
commitment to growing in the low- and no-alcohol
category. Its performance so far has been very
positive across Europe.
HEINEKEN's cider strategy continuesto deliver.
We experienced particular strong performance
in Austria, Poland, Greece, Croatia, Romania and
Ireland. Strongbow Dark Fruit showed excellent
performance, which is one-third of Strongbow
volume in the UK, and now also launched in Poland,
Czech Republic, Hungary, Slovakia and Slovenia.
Orchard Thieves is growing fast and is now available
in 14 European markets.
Ichnusa
As an example of our premiumisation
strategy, HEINEKEN expanded Ichnusa,
our local jewel brewed for over 100 years
with passion in Sardinia, to the mainland
of Italy. This was supported by an award-
winning campaign showing the unique
Sardinian soul of Ichnusa. As part of this
roll-out we also launched Ichnusa Non
Filtrata, a very successful innovation that
builds on the craft variety trend.
Renewable energy, Spain
As part of our sustainability drive,
HEINEKEN undertook a number of
sustainability initiatives in Spain, including
the creation of a renewable energy plant
that will fulfil 100% of HEINEKEN Spain's
electricity demand from 2020, a biomass
plant that will fully power Jaén Brewery
and a solar powered brewery in Seville.
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