Our
year
2022

In 2023,
we will build
on the strategic choices of 2022.

Peer Swinkels,
Chief Executive Officer
Peer Swinkels,<br> Chief Executive Officer
Making Royal Swinkels Family Brewers better, healthier and more sustainable; that is the core of our strategy. This is how we pass on an even more beautiful family business to future generations. Our annual figures show that Swinkels Family Brewers has remained financially healthy despite several years of crisis. In this respect, a compliment to our staff is in order here. In 2023, we will maintain the strategic course we have set in a challenging environment with constantly changing circumstances.

Swinkels Family Brewers was still dealing with the impact of the COVID-19 pandemic in the first two months of 2022, particularly due to on-trade closures in the Netherlands and Belgium. After this, the on-trade sector reopened and both national and international events again took pride of place on the calendar. People could meet up with each other again in on-trade businesses and at festivals to enjoy a good glass of beer together. This normalisation benefitted our results; the recovery is visible in our figures.

After the pandemic, however, we faced other challenges. As a result of the war in Ukraine, prices of (raw) materials and energy soared in a short period of time. In addition, we faced availability challenges in the supply chain. We were always seeking and regaining our balance during the changing circumstances. The year 2022 has given us confidence that the strategic course set for the coming years is the right one.

The “Power of Balance” is therefore the theme of our 2022 Annual Report.

Read more about various topics in 2022 below.

  • Situation Ukraine

    Situation Ukraine
  • Situation Ukraine

    We have strongly condemned the Russian regime’s invasion of Ukraine from the very first moment and we strongly disapprove it. Our thoughts are with the more than 44 million Ukrainians whose lives have been so harshly affected. We feel a responsibility to contribute to the help that the Ukrainians currently need. Read more about this in the “Local involvement“, part of this report. For the most up-to-date information on our position in Russia, please refer to our website.

  • COVID-19: The end of lockdowns and recovery

    COVID-19: The end of lockdowns and recovery
  • COVID-19: The end of lockdowns and recovery

    We are happy to meet each other outdoors again now that the COVID-19 pandemic is mostly over. The start of 2022 was still marked by lockdowns. After this, sales in the on-trade sector in particular picked up. For several Swinkels Family Brewers’ employees, the end of the lockdown meant that they had to find a renewed balance between working in the office and at home. We continue to enable this hybrid way of working.

  • Strategy

    Strategy
  • Strategy

    We started implementing our strategic plan in 2022. The growth strategy, which will make our company future-proof, has now been further defined with concrete action plans for each growth pillar. We observed immediate results from this; we have improved the distribution of our brands in Western Europe, expanded our customer base in various sales channels and further reduced our working capital. To further develop our strategy into action plans and integrate it into our organisation, we appointed a Chief Transformation Officer (CTO) to the executive team in 2022.

  • Availability of raw materials

    Availability of raw materials
  • Availability of raw materials

    Availability and prices of (raw) materials and machine parts were under tremendous pressure in 2022. The historically high inflation rate played a major role in this. We therefore had to look for other sources to purchase our materials. Flexibility was important here.

    All in all, we managed to contain cost increases and cope with limited availability. When planning projects in 2023, we will take longer, more realistic, delivery times into account to ensure the progress of our projects.

  • On-trade real estate in Belgium

    On-trade real estate in Belgium
  • On-trade real estate in Belgium

    We strengthened our market position in Belgium in 2022 by acquiring 94 on-trade locations. This investment offers not only a healthy return, but also a diversification of our activities. We also regard this real estate purchase as a great investment in the future of our family business.

  • Brewery in Cuba

    Brewery in Cuba
  • Brewery in Cuba

    In 2022, we invested in the construction of a new brewery in Cuba, a country where we have long been active through exports. The project is on schedule and the first beers are expected to be brewed in 2023.

  • Growth and smarter cost management

    Growth and smarter cost management
  • Growth and smarter cost management

    Our company recovered from the effects of the COVID-19 pandemic in 2022. Although sales volumes grew we faced significant cost increases. Cost control therefore remained of great importance, even after the pandemic. We remained selective in our investments. Among other things, we invested in the emission-free malting plant in Eemshaven, the construction of a new brewery in Cuba and the digital transformation of our company.

    Volume growth and cost savings have allowed profits to recover in 2022 after the COVID-19 pandemic. The financial position of our company can be considered healthy. This is a great starting point to keep following the path we have taken and to continue investing in our strategy for the future.

  • As a family business, we work togetherbased on solidarity.

    Geert van Iwaarden,
    Chief Financial Officer
    Geert van Iwaarden, <br> Chief Financial Officer

Looking to the future

In 2023, we will consistently build on the strategic plan, the implementation of which began in 2022. We further fine-tuned governance with a new composition of the executive team, which now includes representation from all divisions, HR, Growth and Transformation. This ensures that our company remains resilient for the future. 

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  • Raw materials

    Raw materials
  • Raw materials

    The raw materials market is expected to remain limited in 2023 as well. Driven by inflation and availability, new cost increases will be inevitable. We will therefore continue to focus sharply on controlling our costs in 2023.

  • Intelligent Brewery

    Intelligent Brewery
  • Intelligent Brewery

    The year 2022 proved to be very important for our major digital transformation programme “Intelligent Brewery”. The programme went live for the Lieshout location on October 31st. A great moment made possible by the commitment and involvement of over three hundred employees. We greatly appreciate this and we are extremely proud of them.

    Within a few years, we will be working in the same way worldwide. From then on, interchangeable data will allow us to better utilise the scale of our business. The implementation of the programme will be a major efficiency improvement and will enable us to provide even better service to our customers.

  • Circularity

    Circularity
  • Circularity

    Our ambition to become fully circular has not changed. To that end, the Swinkels Circularity Index (SCI) serves as a compass. We fine-tuned our SCI in 2022, thereby increasing the quality of our measurement methodology. We exceeded our goal of 58% circularity in 2022 by achieving a score of 59%. We also focused in 2022 on developing a multi-year approach to achieve our goal of fully circular operations.

    The emission-free malting plant in Eemshaven is an example of a project that will make a major contribution to our SCI score. This step in energy transition will require a substantial investment in the coming years, but is of great value to us and to Holland Malt’s customers. In 2022, we continued to shape the transition, enabling us to actually convert our malting plant in Eemshaven in 2023 and operate emission-free from mid-April 2024.

    We also committed ourselves in 2022 to the Science Based Targets initiative (SBTi). This includes a commitment to reduce global warming by 1.5 degrees by 2050. This objective is part of our climate strategy, which focuses on reducing our CO2 emissions. In recent years, we have already made great strides in this regard; since 2019, we have been able to reduce our CO2 emissions by 37%.

  • Winning family culture

    Winning family culture
  • Winning family culture

    We see the world around us in the same way as we see our own family. We have a social role to fulfil and want to pass on our business to the next generation in a future-oriented way. That social responsibility forms part of our company’s DNA. In the coming years, we wish to further embed it in our company. Not only for our employees, but also for our customers, consumers and other stakeholders. 

    The year 2022 was the year when employees could come together again, to work together, win together and raise a glass together. Our winning family culture was felt throughout the company. A good example of this was the weekend when the Intelligent Brewery programme went live in Lieshout. Employees – after months of preparation and sometimes a high workload – worked together to ensure that the process of going live went smoothly. Reaching milestones together and sharing successes; we are proud of this great achievement. This great sense of togetherness is something we wish to hold onto in the coming years.

    In 2022, we maintained our new way of working forced on us by the COVID-19 pandemic. All employees with non-workstation bound functions will continue in a hybrid way of working; alternating between office-based and working remotely. We have optimised the work locations of those with workstation bound functions to make working there as pleasant, safe and effective as possible. 

    We continuously invest in the quality of work and well-being of our employees. In 2022, we appointed a new Chief People & Culture Officer (CPCO) to the executive team. We are confident that his arrival will help ensure that Swinkels Family Brewers is and will continue to be an appealing employer. Our company is characterised by entrepreneurial minds and we wish to nurture that.

  • Focus on growth

    Focus on growth
  • Focus on growth

    The Intelligent Brewery Programme going live took place in Lieshout in 2022. Now that the foundation is in place, the priority in 2023 is to stabilise and further develop this new platform. We will roll it out to all other parts of our company and will add new functionalities. We are increasingly starting to reap the benefits of our efforts in the digital transformation of our business.

    For our winning family culture as well, the focus in 2023 will be on strengthening the foundation. Through leadership programmes we will zoom in on our company’s strengths; entrepreneurship, cooperation and our focus on results. As we believe in the power of our staff we like to invest in their development through training and education.

    We will set our target for the circularity score at 62% in 2023. We will also be actively working on our multi-year plan to continue to improve our score and also to be “net zero” by 2050 in terms of CO2 emissions. Through our initiatives in circularity and sustainability, we comply with the Paris Climate Agreement, European and Dutch legislation, the “Fit for 55” plan and SBTi guidelines.

    With our strategic plan, we explicitly choose to invest in order to remain successful in the long term. In addition to investments in machines and buildings, our investments will be aimed at acquisitions, the construction of new breweries and malting plants, and the further expansion of existing business units. Investments in, for example, circularity and the Intelligent Brewery run parallel to this. In the end, we have only one goal; to pass on an even more beautiful company to future generations.

One strategy, three divisions

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  • Swinkels Family Brewers
    Great achievements
  • Swinkels Family Brewers

    Great achievements

    Our “beer division” recovered well from lockdowns in 2022. Our key brands experienced further growth as well. Due to the high price inflation in several markets, we’ve noticed consumers making more informed choices due to purchasing power pressures. Our broad product portfolio and presence in multiple sales channels is to our advantage in this regard; hence the further growth of our e-commerce and out-of-home channels.

    The Swinkels Family Brewers division focused more on localisation in markets such as Africa and the Middle East in 2022. We also committed to the further expansion of our presence in the various sales channels in Western Europe to further introduce consumers to our brands. In 2023, we will continue on this path; we will expand our field service and train our employees to increase our distribution.

    We will continue to work on the growth of our brands. We also undertook action to reduce complexity in our operations. One way of doing this is by discontinuing stock keeping units (SKUs ). We do not compromise on the diversity of our portfolio, but we do reduce complexity in production. This allows us more room for innovation.

  • Holland Malt
    Towards the first emission-free malting plant
  • Holland Malt

    Towards the first emission-free malting plant

    Holland Malt achieved good results in 2022. It was a challenging year, in which this division faced substantial price increases and limited barley availability in the supply chain. Despite these challenges, Holland Malt’s malting plants continued to run at full capacity. This has enabled Holland Malt to properly protect both results and profitability.

    The realisation of the emission-free malting plant at Eemshaven is on schedule, despite challenges in the raw materials market. We expect the entire malting process to be emission-free by mid-April 2024, which is unique on this scale. Here, the installation of the largest heat pumps in the food and beverage industry in Europe will form a great contribution in terms of sustainability and energy efficiency.

  • Habesha
    Stability after challenging year
  • Habesha

    Stability after challenging year

    The year 2022 saw positive developments at our brewery Habesha in Ethiopia. Peace returned to the country. Tensions surrounding the armed conflict in the north eased. In addition, the impact of government measures related to the COVID-19 pandemic reduced. This made us very happy as the safety of our local employees and business partners is of paramount importance.

    Our brewery also did well in 2022. The Habesha draught beer introduced in 2021 is bearing fruit. Both Kidame beer and the non-alcoholic malt beverage Negus are also well received by the market. Volumes in our brewery are increasing, which contributes positively to the profitability of the division. Habesha’s portfolio was further expanded in 2022 with the introduction of Feta, a bitter beer.

    The exchange rate of the local currency, Birr, has stabilised which has a positive impact on the results. Stability in politics and the economy is good for Ethiopia and also for our local activities. With regard to 2023, we are hopeful for a continued stability.