Asia Pacific The proceeds from sales in the
Asia Pacific region rose by 17 to EUR 732 million.
Profitability was significantly higher.
Heineken has built up a strong position in the
region via Asia Pacific Breweries, a joint venture
between Heineken and Fraser Neave in
Singapore, as well as through our own operating
companies, licensing partners and exports.
Not until the end of the year did the economic
situation in a number of countries show signs of
improvement. During the year, a number of beer
markets were still confronted with a slowdown
in growth in general and in the premium segment
in particular. The latter was especially the case in
Hong Kong, Taiwan and Vietnam. In the longer
term the prospects for the development of the
economy and of purchasing power - and hence
the beer market - are promising. We are therefore
optimistic about the future potential of the region
and continue to search for ways of reinforcing our
brands and expanding our brewery interests.
The beer market in China plays an important role
in this. Although investing in China is a long-term
undertaking, we continue to see this beer market
as having the greatest potential for growth in the
region. A strong position in the extensive Chinese
beer market is therefore of great importance to
the Group.
Our brewery on the Chinese island of Hainan
succeeded in substantially boosting its sales of
Anchor beer, while the Tiger brand reinforced its
position in the premium segment. APB acquired
the remaining 20% of the share capital of Hainan
Brewery. In Shanghai, competition from locally
brewed international brands increased further.
As a result, Shanghai Mila Brewery's Reeb brand
lost market share. The beer sales of the brewery
in Fuzhou were down compared to 1998 due to
competition from extremely low-priced local beers.
Exports of Heineken beer to China increased
sharply. The number of Heineken sales offices in
China was expanded to six.
Vietnam Brewery in Ho Chi Minh City, Vietnam,
maintained its market share. Our Bivina brand,
positioned in the mainstream segment, grew.
Sales proceeds in the Asia Pacific
The premium segment of the beer market was
under pressure as a result of the worsening
economic condition. This had consequences
for sales of the Heineken and Tiger brands.
As a result of the lower growth in the beer market,
completion of the Hatay brewery near Hanoi
has for the time being been suspended.
In Thailand, the Heineken brand once again
showed strong growth and is now the
undisputed leader in the premium segment of
the beer market. In order to meet the increasing
demand for Heineken beer and to be in a position
to brew beer for other segments of the market,
the capacity of Thai Asia Pacific Brewery has
been doubled.
The sales of Tiger and Anchor beer in Cambodia
grew and Cambodia brewery once again expanded
its leading market position.
In Singapore, the years of growth in the beer
market came to an end. Although sales fell slightly,
Asia Pacific Brewery Singapore retained its high
share of the market.
Sales of Tiger beer by the brewery in Malaysia
rose substantially and offset the lower sales of
Anchor beer and Guinness stout.
Thanks to the improved political situation
and the recovery of the beer market in Indonesia,
Multi Bintang Indonesia was able to improve its
profitability. Sales are approaching 1997 levels.
The sales volume and market share of Grande
Brasserie de Nouvelle Calédonie in New Caledonia
rose once more. Changes in regulations resulted
in a structural change in the market in
New Zealand. Partly in consequence of this, the
DB Group is restructuring its activities. Its brewery
and wine activities will be placed in separate units.
In the same context, liquor retail stores, among
other activities, are being divested. It was possible
to further expand the position of Heineken
as the leading beer in the premium segment.
At the beginning of 2000, a public offer was
made on the remaining 41.6 of the outstanding
shares of the DB Group.
In Australia we undertook the selling and
marketing of imported Heineken beer ourselves.
region rose by 17% to EUR 732 millio
3 2