Foreword

In the beer division, we faced challenging market conditions in 2023. Thus, inflation, reduced purchasing power and consumer confidence, put pressure on volumes throughout the beer market. Weather conditions with heavy rain in the spring and fall also caused a negative impact. Through a combination of effective pricing policies, cost control and portfolio management, we were able to limit the effects.

We brought focus to our assortment and market approach. In Japan, for example, we launched a successful new distribution model for our non-alcoholic beers. In this way we increasingly produce locally, which has a positive impact on efficiency and sustainability. In South Africa, for example, and in collaboration with a local brewery, we realized the production of a number of alcoholic and non-alcoholic beers close to the market. We also broadened distribution in our focus countries by including channels in which we were not previously active.

With these and more initiatives, we managed to increase our market share in several countries in 2023. This ensured an increase in turnover compared to 2022 and a positive profit contribution to the company. A great result in a difficult market.

Holland Malt also shows a positive contribution in 2023. The division’s turnover increased, as did the return. Despite a major rebuild at the Eemshaven malting plant, we achieved high efficiency in production with the malting plant in Lieshout focusing primarily on the production of a variety of malts for specialty and craft beers, among others, and the malting plant in Eemshaven focusing in particular on higher volume production. As the malting process is energy-intensive, Holland Malt committed to an energy transition at the end of 2021. A transition plan has been prepared for both malting plants.

The conversion of the Eemshaven malting plant into the “world’s first emission-free malting plant” began in 2023. The conversion process, with hyper-efficient heat pumps providing the heat supply, was intensive and drastic. For example, in 2023, production was stopped twice to complete a phase of the project. The conversion process for the world’s first emission-free malting plant will be completed by the end of the first quarter of 2024. This offers great advantages in terms of energy efficiency given the increased cost of energy, and is above all a sustainable step that fits the ambition to develop the company into a fully circular company. Our customers have joined this project, resulting in this investment also contributing to making the chain more sustainable. The Holland Malt team shows that we are ready for the future.

After a period of civil war, the situation in Ethiopia is more stable in 2023, although parts of the country remain restless, particularly in the region of our brewery. An annoying consequence of this situation is that it leads to hyperinflation. This causes decreased purchasing power among the population and erratic prices for (raw) materials. Despite these circumstances, however, the brewery proved able to record growth. The Habesha brand has shown a solid growth in turnover for many years, partly due to the development of Habesha on tap. Our non-alcoholic malt beverage Negus is also doing very well. The diversification strategy to four brands also contributed to the increase in sales. Thanks to an excellent commercial apparatus, a differentiated pricing policy and the passion for our various brands, the Habesha team manages to perform well.

Cuba has been an important export market for Royal Swinkels Family Brewers for decades. That remained unchanged in 2023. In line with the strategy, the ambition arose to create a local production facility as well. After a period of exploration and planning, the new brewery was realized in 2023 in the town of Mariel, Cuba, on schedule and within budget. The brewery became operational in the second half of 2023, but is still in the start-up phase. To strengthen the start-up, its own local brand was developed and launched under the name Parranda (which stands for a well-known celebration in Cuba).

In 2023, Royal Swinkels Family Brewers added the Swinkels Real Estate business unit. Activities in real estate already existed and, after acquiring a large portfolio of on-trade properties in Belgium, have now been brought together in a separate division. This provides benefits for effectively managing the real estate portfolio of on-trade locations in the Netherlands and Belgium and elsewhere. Swinkels Real Estate aims to further develop the portfolio in terms of visibility, profitability and sustainability.