Western Hemisphere Review by region Heineken has built a good position in the Western Hemisphere with exports to the United States, Canada, Central and South America. Added to this, the Group owns a number of breweries in the Caribbean and licence agreements have been entered into with various brewers in Central and South America. United States Growth in sales of Heineken and Amstel Light remains high The beer market in the United States grew once again. This was attributable to favourable demo graphic developments and an increasing interest in beer. The thriving economy also plays a part. Imported beers and the light segment were once again the fastest growing segments of the beer market. Our exports to the United States increased by 14%. Both Heineken and Amstel Light achieved sub stantial growth, partly as a result of increased marketing efforts focusing particularly on the outlets for off-premise consumption. Our sales grew particularly fast in the supermarkets. On-premise sales, sales in the liquor stores and in the convenience stores also increased. Heineken beer in cans has captured a permanent place in the American market, thanks to the success of the keg-shaped can. Profitability increased considerably, in part due to the higher exchange rate of the dollar against the euro. The distribution of our beer in the United States has improved considerably. In the course of the year we opened a number of our own depots, which enables us to supply directly from stock. It has also made the supply chain more efficient. The new approach simplifies production planning and im proves the efficiency of the breweries. The lead times for distributors have been cut, which means that our beers now reach the consumer just as fast as large local beers. Virtually all orders are processed via the Internet. In mid-2001 all our beer sales in America will pass through the new system. Canada Large potential Sales of Heineken beer rose again. Cooperation on distribution with Molson Breweries is proceeding very well. Heineken's potential for growth in Canada remains considerable. Central America and the Caribbean In August Heineken beer was introduced in Mexico. Distribution and sales are concentrating initial ly on a number of large cities and major tourist centres, among which Mexico City, Monterrey and Guadalajara. Operations proceeded reasonably well in most of our breweries in the Caribbean and profitability increased. Sales volume of Heineken beer also rose and so the sales mix of our breweries in this region improved. Specific marketing activities reinforced the position of our brands. Cost control and improvements in efficiency had a favourable impact on profitability. Commonwealth Breweries on the Bahamas acquired a local distributor, which improved the availability of its products. The profitability of Windward and Leeward Brewery on St. Lucia was satisfactory. The brewery celebrated its 25th anniversary. Windward and Leeward Brewery expanded its export activities, with exports to Barbados in particular increasing. In Surinam the Surinaamse Brouwerij largely completed its current investment projects. This resulted in an improvement in the brewery's efficiency. The economy on Curasao is in the throes of a recession. The Antilliaanse Brouwerij was forced to reorganize in order to adapt operations to the difficult economic circumstances. Although the economy on Martinique suffered from the decline in banana exports, Brasserie Lorraine's sales volume and profitability remained stable. HEINEKEN N.V. ANNUAL REPORT 2000 31

Jaarverslagen en Personeelsbladen Heineken

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