Share gain in a
volatile environment
i iil'ijij, 2
i. 3§
0
I
74.8mhl €8,631m
€447m
13.9mhl 17.0%1
28
Europe
33.7%
"The health and safety of our people and partners was the first
priority. This focus allowed us to ensure business continuity.
With the implementation of strong plans, we were able to gain
value share in most markets."
Shutter
Heineken N.V.
Annual Report 2020
Report of the
Introduction Executive Board
Soren Hagh
President, Europe
In late February, the first COVID-19 outbreaks
and subsequent lockdowns forced us to reset
priorities and change the governance of our
businesses in Europe. Management Teams
across the region and all operating companies
moved into crisis mode - ensuring the safety
and health of employees and partners,
continuity of operations and minimising
financial impacts.
Our pubs business in the UK,
Star Pubs Bars, supported licensees
with rent reductions, help with
business continuity, restocking and
practical advice on creating a safe
environment for consumers.
ukiiltê,
J'fnitanHn
Heineken
Taking care of our on-trade partners
became a fundamental priority.
We supported hundreds of thousands of
customers via trading and credit terms.
We partnered with trade associations
and others to develop engaging and
collaborative platforms through which
consumers and business players could
show their solidarity with the sector.
Heineken® continued to outperform the
market despite the challenging backdrop.
Even more consumers enjoyed a Heineken®
0.0, now available in 33 markets in Europe.
Our premium portfolio also featured success
stories, in particular through Desperados and
Birra Moretti.
Report of the
Supervisory Board
Financial
Statements
Sustainability
Review
Other
Information
Consolidated beer volume
(2019: 81.0mhl)
Consolidated beer
volume as of total
(2019: 33.6%)
Heineken® volume
(2019: 14.9mhl)
Net revenue (beia)
(2019: €10,629m)
Operating profit (beia)
(2019: 1,436m)
Operating profit (beia)
as of total
(2019: 34.8%)'
1 Excluding Head Office Eliminations
Key brands:
Heineken®
Ichnusa
Birra Moretti
Desperados
Strongbow
Joining forctfor a sustainable future
After a solid third quarter, the re-emergence
of the pandemic in October resulted in new
local and national lockdowns and widespread
restrictions. This primarily affected, but
was not limited to, on-trade operations.
The negative impact from the on-trade
closures was accentuated as in certain markets
we own beverage wholesalers and pubs.
Total beer volumes fell high-single digits,
marked by the unprecedented channel shift
to take-home in the midst of lockdown
measures. Markets less exposed to the on-trade,
such as Poland and Romania, successfully
offset volume losses in hospitality through
strong performance in off-trade.
All markets, especially the UK, France,
Spain, Ireland, the Netherlands and Italy,
saw strong off-trade volume developments
as consumer occasions shifted to their homes.
This resulted in significant value market-share
gains in most European markets, supported
through strong supply chains and commercial
plans. The latter supported winning share
in the premium segment, driven by strong
international brands and local jewels such
as Ichnusa in Italy.
In December, HEINEKEN, Nouryon, Philips and Signify formed the
first consortium to sign a Pan-European green energy deal securing
additional renewable electricity for Europe. The four companies have
a shared vision to reduce CO2 emissions in support of the UN Paris
Agreement and the European Green Deal objectives. HEINEKEN will
source renewable electricity for an additional 28 of its European
production sites.
We continued to selectively
invest in local craft brewers
and acquired Texelse
Bierbrouwerij, which will
complement our brand
portfolio in the Netherlands.
The temporary closure of
on-trade outlets and
subsequent pressure on
top-line performance led to
a significant negative impact
in this channel. Through the
collective efforts of operating
companies, the adverse bottom
line impact was absorbed by
reducing commercial and
fixed expenses.
