O A
Our business priorities (continued)
Deliver top line growth
Our strategy remains the same: to lead the premium segment in beer
and cider across the world and leverage the strength of Heineken®,
supported by a strong portfolio of international premium and local
brands. Our goal is to be the number one, or a strong number two,
in the markets where we compete with a full brand portfolio.
Heineken® and international
brands growth
Consumer trends and behaviours
Continue to shape the cider category
E-commerce and digital marketing
Our brands and e-commerce are the drivers of our top line growth...
Our global brand -
Heineken®
Our international
brands portfolio
Our international craft and
variety brands
Our low- and no-
alcohol brands
Our global
cider portfolio
Our e-commerce and
digital marketing
Introductio^^^^^^^^^^H Report of the Executive Board^^^^^l Report of the Supervisory Board
In 2018, the Heineken® brand continued to
outperform. Volumes grew strongly by 7.7%,
which is the best performance in over a decade.
Our international brands portfolio is comprised of a
strong group of premium brands that complements
Heineken® and taps into consumer appetite for
diversity, new taste and brand experiences, and unique
stories. These brands are Amstel, Desperados, Sol,
Tiger, Tecate, Red Stripe, KruSovice and Birra Moretti.
They continue to be a strong driver of premium
revenue growth with double digit growth outside
their home markets.
Consumer tastes and preferences continue to
evolve and shape our industry. The most noticeable
change has originated from the popularity of craft
beer, but more gradual changes have emerged from
changing demographics and a growing awareness
of health and wellbeing.
Craft and variety is an important category for
us that complements the growing international
premium beer segment. It has put beer at the centre
of the conversation among a broader group of
discerning consumers. Around the world, consumers
are seeking more variety and our consumer-oriented
approach has increased our understanding and
accelerated the international growth of our craft and
variety range. This is led by iconic international craft
brands such as Affligem, Mort Subite and Lagunitas,
and supported by craft line extensions such as Brand
IPA in the Netherlands, and Birra Moretti Regionale
in Italy, strong local craft brands such as Beavertown
in the UK and La Cibeles in Spain.
The relatively recent trend towards health and wellness
in the developed world is driving growth in low- and
no-alcohol drinks. Consumers are demanding more
variety and we continue to innovate with low- and
no-alcohol beers, Radlers, dark and clear malts and
malt-based energy drinks. Volumes in our low- and no-
alcohol portfolio increased mid-single digit, delivering
13.1 million hectolitres in 2018 (2017: 12.5 million
hectolitres). In Europe, volumes grew high single digit.
The trend towards variety in flavours and tastes
means cider is the fastest growing category in alcohol.
Albeit still small in size, we are shaping the category
i n many markets where modern cider is new, such as
in Spain, Vietnam and Mexico. We are strengthening
our position in more developed cider markets
such as South Africa and Ireland with our global
brands Strongbow and Orchard Thieves. Active in
over 40 markets, our consolidated cider volume
increased double digit, including the UK, to reach
5.6 million hectolitres (2017: 4.9 million hectolitres),
with more than 2 million hectolitres outside the UK.
E-commerce and innovation are important for
us. As new developments affect the shape of the
beer industry's route to market, being close to
the consumer and to customers is critical. We are
creating new opportunities through our B2C and
B2B e-commerce platforms (see page 15) and other
digital commerce initiatives.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2018^ 09
Other Information
HEINEKEN has more than 300 brands around the
world. Over the following pages we take a closer
look at just some of the brands which are continuing
to deliver top line growth for the business.
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MORT
SL'BiTO
Further information about our brands at:
theHEINEKENcompany.com/Brands
