Countries

USA

Consolidated beer volume 7.9 million hectolitres
Market position* 2
*
In imported segment.

According to AC Nielsen data, the US beer market grew 0.1 per cent in 2008, the result of slight growth in the first part of 2008 and a weaker trend by the end of the year, when the on-trade and convenience store channels in particular came under increasing pressure due to the economic downturn. According to AC Nielsen data, the import segment declined 1.5 per cent.

Total beer sales of Heineken USA were 2 per cent lower, with sales volume of the Dutch brands declining -5.6 per cent and the Mexican brands growing +8.3 per cent. Depletions (sales by distributors to retailers) of the Dutch portfolio and Mexican portfolio were -4.9 per cent and +7.9 per cent respectively.

Depletions of imported Heineken lager (-4.8 per cent) were also affected by the lack of significant new advertising campaigns whilst sales volume was also affected by a 4.1 per cent price increase across the entire Dutch portfolio in November 2008. Depletions of Heineken Premium Light were only slightly lower, despite price promotions of competing imported light beers. Amstel Light depletions were down 11 per cent.

The FEMSA portfolio gained share in the import segment and amongst Mexican-American consumers. Growth was driven by Dos Equis and the Tecate brand family (Tecate and Tecate Light), which grew significantly despite a price increase of 4 per cent in October 2008.

At the 2008 Super Bowl, Heineken USA launched a new advertising campaign for Heineken lager, which focuses the consumer on the brand’s premium equity and positioning.

Lower volume and negative currency developments led to lower reported revenue. EBIT (beia) grew double digit on an organic basis, thanks to significant fixed-cost reductions and more efficiency in marketing spend. Reported EBIT (beia) was negatively affected by the lower US dollar hedge rate (-€45 million).

Canada

Heineken Canada increased substantially its revenues and EBIT (beia), driven by the strong performance of the Heineken brand, which grew 11 per cent mainly thanks to additional penetration in the on-trade segment. For the first time the brand exceeded the 500,000 hectolitres threshold.

Latin America and Caribbean

Heineken operates in the region through:

  • Controlled operations: Panama, Bahamas, St. Lucia, Martinique and Suriname
  • CCU, a joint venture controlling the leading brewer in Chile and number two in Argentina
  • A minority stake in FEMSA Cervejas Brazil and in FIFCO in Costa Rica
  • Exports to a number of markets of which Puerto Rico is the most significant

Both revenues and EBIT (beia) for our fully consolidated operations in the area grew, thanks to higher volume and the implementation of price increases.

In Chile, CCU continues to enjoy strong market leadership, and recorded 8 per cent beer volume growth, driven by Heineken (+22 per cent) and other local brands Escudo and Cristal. The devaluation of the peso (-21 per cent) limited the profit contribution to Heineken. Volume in the Caribbean markets grew 7.9 per cent, despite weaker tourism affecting trading in Bahamas and Puerto Rico. Performances in Panama and Suriname were strong.

Online Information