Deliver top line growth Our strategy is to lead the global premium segment in beer and cider by leveraging the strengths of Heineken®, our international and local brands. Our goal is to be number one, or a strong number two, in the markets where we compete with a full brand portfolio. Our brands are the drivers of our top line growth- Global brand International brands Low- and no-alcohol International craft Global cider Heineken® and international brands growth Consumer trends and behaviours Continue to shape the cider category Connecting in a digital world O O Qs Report of the Executive Board^^^M Report of the Supervisory Board Further information about our brands at: theheinekencompany.com/our-brands Hdnck Heineken N.V. Annual Report 2019 ^10^ Financial Statements Sustainability Review Other Information In 2019, the Heineken® brand volume grew by 8.3%, the best performance in over a decade. The brand grew across all regions with double-digit growth in over 40 markets including Brazil, Mexico, South Africa, Nigeria, the UK, Romania and Germany. Heineken® 0.0, now available in 57 countries, continues to gain traction. Our international brands portfolio includes Amstel, Desperados, Sol, Tiger and Birra Moretti. Together these brands are a strong driver of premium revenue growth. In 2019, the volume of our international brands portfolio grew high-single digit, driven by the double-digit growth of Tiger and Amstel. Consumer tastes and preferences continue to evolve and shape the industry. International craft is an important category for us. It complements the growing international premium beer segment and puts beer at the centre of the conversation for a broad group of discerning consumers. Our craft volume grew mid single-digit to 5.6 million hectolitres with a double-digit expansion in Europe compensating for lower volume in the Americas. Globally, consumers are seeking variety. Our consumer- oriented approach has deepened our understanding of this market and accelerated international growth of our craft range. The biggest growing beer style is wheat beer and the fastest is IPA. We cover these segments with our international craft brands Lagunitas and Edelweiss. In 2019 new local craft brands such as Oedipus in the Netherlands and Gallia in France joined our craft portfolio. We are successfully scaling local authentic brands like Ichnusa and Messina in Italy and line extensions of local brands such as Brand IPA in the Netherlands and Zywiec APA in Poland. The public focus on health and wellness is driving growth in low- and no-alcohol drinks. Health conscious consumers want variety and we are meeting this through innovation in low- and no-alcohol beers, Radlers, dark and clear malts and malt-based energy drinks. Volumes in our low- and no-alcohol portfolio increased high-single digit, delivering 14.1 million hectolitres in 2019. We are expanding at scale and speed in the no- alcohol segment. The no-alcohol portfolio grew double digit, driven by Heineken® 0.0, other line extensions of leading brands and beer mixes. Our Zero Zone products are alive in more than 20 countries, offering consumers a compelling range of no- alcohol beverages. Demand for variety in flavours and tastes has made Cider the fastest growing category in alcoholic beverages. Albeit still relatively small, we are shaping the cider category in many markets where modern cider is new, such as Spain, Vietnam and Mexico. We are strengthening our position in more mature cider markets, such as South Africa and Ireland, with our global brands Strongbow and Orchard Thieves. Active in over 40 markets, our cider volume was stable and reached 5.6 million hectolitres in 2019. Volume increased double digit outside the UK, with South Africa and Russia in the lead. In the UK, volume declined high single-digit mainly due to a challenging comparable versus last year. We now locally produce Cider in 18 markets. We want to be the best connected, most relevant brewer for consumers living in the digital age. Read more about how we are getting closer to consumers and customers on page 21

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2019 | | pagina 10