Chief Executive's Statement
02
HEINEKEN delivered a strong performance in 2017, in spite of continued challenges in the
external environment, including geopolitical instability and volatile currencies. All of our regions
contributed to organic volume, revenue and profit growth.
We have a broad, balanced geographic footprint which provides stability from mature markets
paired with faster growth from emerging economies.
During 2017, we significantly expanded our operations in Ethiopia, Mexico, Cambodia, Vietnam
and Haiti, and we opened our first brewery in Ivory Coast.
The acquisition of Brasil Kirin makes us the second largest beer company in Brazil and better
equips us to capture future profitable growth in this exciting beer market. Another key
investment during 2017 was our acquisition of approximately 1,900 pubs from Punch Taverns,
making us the owners of the third largest pubs business in the UK.
The Heineken® brand continued to benefit from its position as a progressive and innovative
leader in the premium segment, delivering its strongest performance in recent years. As the
premium segment continues to outpace the overall beer market, the brand power of Heineken®
is more important than ever. The launch of our latest innovation, Heineken® 0.0, has been very
promising, in tune with an increasing emphasis on health and wellbeing that is driving changes
in consumer behaviour worldwide.
Our international brands portfolio volume growth, outperformed our total beer portfolio
growth for the third consecutive year. Our local brands are more relevant than ever as local
identity and provenance increasingly matters in many markets. These brands also provide
scale and route-to-market power to build our premium portfolio and new categories.
The craft variety segment continues to be very dynamic and is a priority area for future
growth. In May 2017, we acquired the remaining stake in Lagunitas (having entered a
50/50 partnership in 2015), allowing us to accelerate the roll-out of the brand to many more
markets around the world. Our other international craft brands, Affligem and Mort Subite,
are performing strongly; and we are successful with our crafty line extensions for brands such
as Birra Moretti, Brand and Zywiec.
Heineken® 0.0, as well as our other low- and no-alcohol offerings, represent an opportunity
to access our existing base of loyal consumers who would prefer an alcohol-free drink at
times, as well as new consumers who wouldn't otherwise drink an alcoholic beer. In 2017
we sold almost 13 million hectolitres of our low- and no-alcohol products and we see growth
opportunities in this category.
We continue to make inroads in the cider category, which allows us to reach new consumer
groups. One in four alcohol drinkers does not drink beer. Cider can provide a great alternative.
From our position as the world's leading cider producer, we have a unique ability to help
consumers in new markets to develop an understanding of cider-what it is, when to drink
it and the heritage and authenticity that the category represents. The potential of this
global opportunity is highlighted by the double digit volume growth of our cider portfolio
delivered outside the UK during 2017.
Report of the
Report of the
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Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
