raciTlC In the Asia Pacific region, sales
volumes rose by 11% to 9.6 million hectolitres.
Exports to the region increased and the Heineken
brand showed further growth. In the second half
of 1997 the crisis in several national financial
markets led to economic turbulence, devaluation
of currencies, and a decline in the relevant beer
markets. Notwithstanding, our sales volumes and
results in local currencies showed an increase
for the whole financial year. However, results
translated into guilders came out lower than in
1996, due to the substantially lower exchange
rates at the end of 1997.
Our vision on the Asia Pacific region has not
been altered by the present crisis in several
countries there. It is certainly true that sales
volumes and margins will decline in the period
ahead, but the economic fundamentals are in
place for the renewed growth of the beer market,
in the future. Hence, we expect that the decline or
lower growth in beer consumption will be
temporary.
Heineken is active in the region via Asia Pacific
Breweries, a joint-venture between Heineken and
our regional partner Fraser Neave, via our own
operating companies, via licensing partners, and
through exports - supported by local sales offices.
Multi Bintang Indonesia is the largest of our own
operating companies.
The Chinese beer market continues to grow
and now accounts for half of the beer
consumption in the Asia Pacific region. Our new
brewery on Hainan Island was completed in the
first half of the year under review and production
commenced of the Tiger, Amstel and Anchor
brands. Tiger was successfully launched on the
local Hainan market. Deliveries of Amstel and
Tiger beer to mainland China are now underway.
The brewery is still in its start-up phase.
The Shanghai Mila brewery maintained it's
substantial market share in the region. Fujian
brewery in Fuzhou posted a further increase in
sales volume. As official sponsor of the Chinese
National Games, Tiger beer boosted its brand
image and awareness.
Heineken is the only international brand of any
size which is not being brewed in China but
imported. Sales of Heineken beer increased
considerably.
Exports to the region progressed well in 199;
However, exports to Hong Kong suffered from
economic developments. In contrast, the Chine; e
and Taiwan markets significantly contributed to
the growth of Heineken's exports in the region.
The result of the brewery in Singapore
increased. The brewery's dominant market
position was reinforced by the launch of several
special beers including Anchor Ice and Baron
which has a higher alcohol content. The Heineke n
Tennis Open in Singapore generated good
regional coverage and reinforced the Heineken
brand.
In New Zealand the DB Group increased its
market share with all brands as positive
contributors. DB Export Gold performed
excellently. The absolute topper was the
Heineken brand with sales growing strongly
to double the 1996 level.
Amstel was launched in the on-premise sectt r.
DB Group's results developed well.
On Papua New Guinea the brewery and soft-
drink factory SP Holding improved its result.
In Vietnam the beer market showed further
growth. Tiger and Heineken beers, brewed by
Vietnam Brewery, maintained their leading
position in the premium segment. The Bivina
brand was launched nationally in the standard
segment. This expands our brewery's brand
portfolio.
Our brewery in Cambodia kept up productiot
in a difficult political climate. The brewery, whi< h
opened in November 1996, has since undergom
capacity expansion to 270,000 hectolitres.
In Thailand sales of locally brewed Heineken
beer show spectacular growth. Heineken now
leads the premium segment. It is reasonable to
expect that the beer market will continue to grov
even given the current situation, and that the
share of the premium beer in the total market w 11
further increase.
Sales proceeds in the Asia Pac f
Earnings decreased as a result of the financial crisis.
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