Western Hemisphere Sales proceeds in the
Western Hemisphere increased by 7% from
EUR835 million to EUR895 million. The profitability
showed a significant increase.
United States
In the United States, our most important export
market, beer consumption grew by about 2%,
the strongest growth for the last ten years. This
growth was attributable to the robust economy
plus continuing high consumer confidence and
a growing 21 to 30 age group. The import and light
beers in particular profited from this increase.
On-premise sales declined in favour of sales via
supermarkets and convenience stores.
The middle-tier breweries have virtually disappeared
from the market partly as a result of the price war
in the last two years. This has led to a large portion
of the excess capacity in the brewing industry being
taken out of the market. Consequently, the large
American breweries were given the opportunity
to raise their selling prices, which cleared the way
for price increases by the other breweries.
Our sales in the United States increased by 10%.
Heineken USA carried through an average price
increase of 3% during the year. This produced a
sizeable increase in the profitability of our
activities. Our investments in marketing and
sales increased substantially. Sales of Heineken
beer rose sharpest. Numerous marketing and
selling initiatives further reinforced the brand.
Consumers, distributors and retailers responded
positively to the new advertising campaign 'It's all
about the beer'. Thanks also to sponsorship of, e.g.
the US Open tennis championships and a number
of films, the brand strength of Heineken improved.
Various new packagings were introduced, among
which a 12 oz. can in the shape of a beer keg.
The sale of canned beer and beer in 12-packs
received increased attention. Amstel Light showed
promising growth.
Canada
Sales ofimported Heineken beer rose substantially
in Canada. The acquisition of distribution facilities
in the province of Quebec was beneficial to sales.
Central America and the Caribbean
Sales of Heineken beer in the Caribbean rose
considerably. Sales of Heineken brewed under
licence in Trinidad, the Dominican Republic and
Costa Rica also rose once again.
Commonwealth Brewery in the Bahamas sold
more beer in spite of an increase in excise duty on
beer. The Windward Leeward Brewery in
St. Lucia also improved its sales. The economic
situation in Curagao continues to result in the
departure of many citizens. Nonetheless, the sales
achieved by the Antilliaanse Brouwerij remained
virtually at 1998 levels. The brewery successfully
introduced Amstel Bright and the beer brand
Coral. Brasserie Lorraine increased its sales in
spite of social unrest in Martinique.
South America
The economic situation in South America put
pressure on beer consumption. Nonetheless,
the long-term prospects are favourable. Beer
consumption is increasing and the premium
segment of the market is growing. The region
offers good opportunities for the further
development of the Heineken brand and our
other international brands. We aim for a greater
involvement in these promising beer markets.
Our licensing partners Quilmes in Argentina and
Kaiser in Brazil sold more Heineken beer than in
the previous year. A licensing agreement has been
concluded with Quilmes for the Heineken brand
for the Chilean market. Production started in
late 1999 and the initial results are encouraging.
Exports of Heineken beer to South America
increased, with sales in Bolivia especially showing
a significant increase.The brewhouse and beer
cellars of the brewery in Surinam were renovated.
In spite of a difficult economic situation, the Parbo
brand was further reinforced and sales increased.
Sales proceeds in the Western Hemisphere increased by 7% from EUR 835
million to EUR 895 million. The profitability showed a significant increase.
HEINEKEN N. V.
REVIEW OF THE
EXECUTIVE BOARD
19 9 9
27
