79.8mhl (2017: 78.8mhl) 341% (2017: 36.1%) 14.5mhl (2017: 13.8mhl)
€10,348m (2017: €9,990m) €1,4 51m (2017: €1,371m) 36.4% (2017: 35.1%)
Regional Review (continued)
The region delivered another positive year. Our focus on
operational excellence, premium and innovation enabled
us to offset headwinds and increase strategic investments.
This translated into revenue and profit growth.
Report of the Executive Board
Report of the Supervisory Board
Key brands: Heineken®, Cruzcampo, Birra Moretti, Desperados, Strongbow Apple Cider
Our focus on premium and innovation continued
to pay off in the region.
Heineken® grew ahead of the market while we
continued the successful roll-out of Heineken® 0.0
Beer volumes across Europe grew moderately,
with key markets including France, the Netherlands,
Italy, Germany and Ireland delivering particularly
strong performances. Our strategy of focusing on
premiumisation and innovation, together with
continuous cost management, helped to offset the
transport cost increases in France and the negative
financial impact of the CO2 shortage in the UK
during the summer of 2018.
In 2018, the weather was unusually good in
Northern and Eastern Europe and unusually mild
in Southern Europe, boosting seasonal sales in
some markets and negatively affecting others.
Our diverse local footprint combined with our
global scale provides unique opportunities to
meet fast changing consumer preferences.
Croatia, Serbia and Slovenia led the development
of the premium segment through Heineken®
and Lasko, while volumes of Krusovice saw strong
growth in Hungary, Czech Republic and Slovakia.
Birra Moretti continued to go from strength to
strength in Italy and successfully travelled to the
UK, where it continues to deliver very strong double
After the integration of Punch Taverns in the UK,
our Star Pubs Bars business is a key foundation
of our business strategy in UK, providing unique
Strongbow Dark Fruit gained strong momentum in
the UK, while Orchard Thieves has been successfully
introduced in 16 European markets. Our strategy of
developing the cider category outside its traditional
home markets is developing well, in particular in
Spain where cider is becoming popular.
Our focus on the craft and variety category gained
momentum in 2018, with Lagunitas growing in
the Netherlands, France and the UK while line
extensions of our brands such as Soproni, Zywiec
and Ichnusa captured opportunities through local
relevance. This strategy is being complemented
by selective acquisitions in the craft and variety
segment. In 2018, we acquired a minority stake
in Beavertown, a London based craft brewery.
In Spain, we acquired a 51% majority stake in
Spanish craft brewer, La Cibeles.
The Blade, a countertop draught system with eight
litre kegs, is now available in 12 European markets.
We increasingly provide our on-trade customers
a greater service and experience through
digitalisation. Our e-commerce platform, which we
operate in a number of markets, meets customer
needs 24/7 to check and order stock availability.
Beerwulf.com expanded its direct-to-consumer
e-commerce platform of craft and variety across
five markets in Europe, offering craft and specialty
beers to beer lovers.
Heineken N.V. Annual Report 2018
Consolidated beer volume Consolidated beer Heineken® volume
volume as of total
Net revenue (beia) Operating profit (beia) Operating profit (beia) as of total
Brand seasons and Brand IPA
Brand is a Dutch beer brewed in
the Netherlands which is all about
smell, colour and taste with a focus
on two segments: seasonal beers
and IPA. It targets consumers that
want to discover a variety of tastes
through our local craft line extensions
with a well-established brand.
We launched a successful campaign
which encourages consumers 'to
taste' the various Brand seasonal
beers and limited editions such as
Brand Herfstbier and Brand Premier
Bock. In 2018, Brand also launched
innovations including Brand Session
IPA and Brand Weizen 0.0.
Olivo pilot project in Spain
In Spain, we grow and cultivate
barley among olive trees in order to
save water, minimise erosion and
improve biodiversity. This agricultural
innovation project demonstrates
that diversification and intercropping
allows the improvement of water
infiltration. It is a research project
which will take place over four years
and three crop cycles, but the initial
results are promising. Through this
project, we are able to compensate
our water intake, conserve the
environment and boost the local
economy by using the barley in
our brewing process. We brewed
'Cruzcampo Bock Olivarera' with
barley from this project in our craft
brewery in Malaga.