29.0mhl
12.4%
6.2mhl
€2,919m (2017: €2,922 m)
€943m (2017: €962m)
23.7% (2017: 24.6%)
Regional Review (continued)
Asia Pacific
In 2018, we signed an agreement with the largest
brewer in China to accelerate Heineken® brand volumes.
The Tiger brand - born in Singapore - is now firmly
established as the No.1 Premium Asian Beer.
Cheers "FFF Ganbëi
O Q,
Introductio^^^^^^^^^^H Report of the Executive Board^^^^^l Report of the Supervisory Board
Key brands: Heineken®, Tiger, Anchor, Larue, Bintang
This year, our volume growth performance in the
Asia Pacific region was led by Vietnam, Cambodia,
Myanmar and Indonesia. In Vietnam, the double
digit growth of Tiger and Larue was driven by our
execution and distribution expansion strategy
to secondary cities and rural areas. In Indonesia,
the iconic Bintang brand grew steadily while the
no-alcohol portfolio volume increased double
digit. In Cambodia, beer volume grew double digit
for the full year led by Heineken® and Tiger which
continued to grow strong double digit.
During the year we announced an agreement
with China Resources Enterprise, limited (CRE)
and China Resources Beer (CR Beer) to join forces
in China. Our long-term strategic partnership
will significantly expand the availability of the
Heineken® brand, and will strengthen CR Beer's
offering in the rapidly growing premium beer
segment in China.
In Vietnam, we announced our plan to integrate
our two operations - HEINEKEN Vietnam Brewery
and HEINEKEN Hanoi - into one combined
HEINEKEN Vietnam company. By integrating the
two operations, we will be better placed to serve
the total Vietnamese market with a full portfolio
of brands and an established distribution network.
We also extended the capacity of four of our
breweries and started the new brewery build in
Vung Tau. We were recognised for the second
year running as the most sustainable business
in Vietnam.
We invested for future growth in Cambodia by
adding a new canning line and started the next
extension to our brewery.
In New Caledonia, we completed the acquisition
of a local water business to add to our beer and
soft drinks portfolio.
The decline of Heineken® in Asia Pacific slowed
thanks to a return to growth in China, the successful
introduction of Blade for Heineken® in South Korea
and Taiwan and the launch of Heineken® 0.0
in New Zealand, Singapore, New Caledonia
and Tahiti.
Tiger's double digit growth continued, with the
brand selling more than 13 million hectolitres of
beer in 2018, supported by the Tiger Crystal launch
in the Philippines and New Zealand.
Our first global talent showcase, Tiger Roar event
in Seoul, kicked off the Tiger Roar Collective -
an incubator and community for every type of
emerging artist with different passion points.
We successfully launched Amstel in India and
Vietnam to strengthen our local offering.
We continue to prioritise the development of local
talent from Asia as we recruit a wide base of Asia
Pacific graduates across our markets and functions
to build the talent pipeline for our future success.
Financial Statements
Sustainability Review
Heineken N.V. Annual Report 2018
Other Information
(2017: 27.0mhl)
Consolidated beer volume
(2017: 12.4%)
Consolidated beer
volume as of total
Heineken® volume
(2017: 6.3mhl)
Net revenue (beia)
Operating profit (beia)
Operating profit (beia) as of total
HEINEKEN and China
Resources to join forces
In November 2018, we signed
definitive agreements with China
Resources Enterprise, Limited
(CRE) and China Resources Beer
(Holdings) Co. Ltd. (CR Beer) to create
a long-term strategic partnership
for Mainland China, Hong Kong
and Macau. In the context of this
partnership, HEINEKEN will become
CRE's 40% minority partner in holding
company CRH (Beer) Limited (CBL),
which controls CR Beer, the market
leader in China - the world's largest
beer market.
We believe that our strong Heineken®
brand and marketing capabilities,
combined with CR Beer's deep
understanding of the local market,
its scale and best-in-class distribution
network, will create a winning
combination in the growing premium
beer segment in China. We look
forward to growing together and
leveraging HEINEKEN's global reach
to help accelerate the international
development of CR Beer's Chinese
beer brands worldwide. Completion of
the strategic partnership is subject to
customary and applicable (including
regulatory) approvals.
Read more about the strategic
rationale of this partnership on
our website.
Community Waste Bank programme in Indonesia
In an effort to tackle one of the
country's most pressing issues -
river pollution, mainly from domestic
waste - our Multi Bintang Indonesia
business launched the Community
Waste Bank programme, which
rewards community groups for
reducing, reusing and recycling waste.
By July 2018, the units sorted
and reduced 184 tonnes of waste,
of which 30% was plastic.
Two tributaries have shown significant
improvement and the programme has
benefited around 3,000 households.
