03
During the year, HEINEKEN launched new e-commerce initiatives, both Business-to-Business
and Business-to-Consumer platforms, such as Beerwulf, which is our new craft variety online
business channel for consumers. We also continued to introduce innovations. In 2017, for
instance, we launched The Blade, a countertop draught system with 8 litre kegs that can be
ordered online by the trade.
We have a clear strategy which is aligned with our commitment to long-term value creation,
with four priorities for action: deliver top line growth, drive end2end performance, Brew a Better
World, and engage and develop our people. You can read more about each of these priorities in
more detail later in the report.
We are making good progress with our 2020 Brew a Better World commitments.
Climate change is a major societal and environmental threat. We have the responsibility
to reduce our usage of fossil fuels and to reduce our CO2 emissions, playing our part in the
commitments set by the COP21 Paris Agreement. We are setting a new ambition for 2030 to
reduce our carbon emissions through a programme called 'Drop the C'. Our new commitments
will cover not just production, logistics and cooling, but also for the first time packaging as an
important component of our carbon footprint. Our aim is to drive an authentic transformation
to renewable energy, deliberately excluding the possibility to achieve targets through purchasing
unbundled certificates. The name 'Drop the C is inspired by the idea that taking the C out of
CO2 leaves Oxygen. The play on words is also about ensuring sea levels do not continue to rise.
We strongly believe that by fully integrating sustainability into the way we do business, we are
best placed to make a meaningful impact on the world around us. As with last year, for that
very reason, this is a joint financial and sustainability report.
Looking ahead to 2018, we are committed to long-term value creation and will continue to
strive for superior top line growth whilst working on improving our operating profit margin.
For 2018, excluding major unforeseen macro economic and political developments, we expect
to deliver an operating profit margin expansion of around 25bps. This includes a residual dilutive
effect on margins from the acquisition of Brasil Kirin and excludes the one-time benefit of IFRS
15 implementation.
With a rigorous focus on our strategic priorities, and with the engagement and energy of all
of us working at HEINEKEN, I am looking forward to 2018 being another year of progress for
our business.
Report of the
Report of the
Financial
Sustainability
Other
Introduction
Executive Board
Supervisory Board
Statements
Review
Information
Heineken N.V. Annual Report 2017
Jean-Fran^oisvan Boxmeer
Chairman of the Executive Board/CEO
Amsterdam, 9 February 2018
