Review by region
Heineken has built up a strong position in this region. A cornerstone is Asia Pacific Breweries, a joint
venture between Fraser Neave in Singapore and Heineken, which has interests in a large number
of breweries in the region. In addition, Heineken owns operating companies in Indonesia and on
New Caledonia. Imported Heineken beer is available in many countries in the region and has built up
a strong position particularly in China, Hong Kong and Taiwan. Added to this, a number of licence
agreements for Heineken have been concluded with local breweries.
The beer market in the region showed slight growth. The share of mainstream beers increased at
the expense of the growth of premium beer. In spite of this, sales of Heineken beer grew while the
regional premium beerTiger managed to maintain its sales at the previous year's level.
In China, competition on the country's largest regional beer market, Shanghai, once more inten
sified. Asia Pacific Breweries increased its participation in Shanghai Mila Brew from 70% to 97%.
The brewery introduced Reeb Light onto the market and commenced a substantial programme of
restructuring. The minority interest in the Tee Yih Fujian brewery in Fuzhou was sold to the majority
shareholder. This brewery no longer fits in our strategy.
Hainan Asia Pacific Brewery on the Chinese island of Hainan performed very well. Sales of Anchor
beer increased substantially. Also the brewery took over the Aoke brand, the second largest beer
brand on the island of Hainan.
Exports of Heineken beer to China increased and sales approached the half a million hectolitres
mark. In Hong Kong too Heineken resumed its advance, thanks in part to the setting up of its own
sales organization. A position in Hong Kong is important because of the positive image it radiates
towards mainland China. The network of distributors in China was again expanded.
The economy in Vietnam remained weak, which had a negative impact on beer consumption.
Nonetheless, Vietnam Brewery increased its sales of Heineken beer. Sales of Tiger beer were stable.
The performance of Bivina, which is positioned in the standard segment, was disappointing.
In Thailand Heineken beer brewed by Thai Asia Pacific Brewery continued to achieve strong
growth. Sales of Amstel, which was introduced in January, have not yet come up to expectations.
In Cambodia the low-priced beers segment increased at the expense of mainstream and premi
um beers. Anchor and Tiger beer sales felt the effects of this, but Cambodia Brewery retained its
leading position in the market.
Due to economic circumstances Singapore's beer market shrank once again. Despite this, sales
of Tiger beer by Asia Pacific Breweries Singapore still reached the 1999 level. Sales of stouts were
under pressure. The brewery's market share was stable and its profitability increased.
In Malaysia the market decreased as a result of an increase in excise duties. Guinness Anchor
Berhad increased its market share. In particular the sales volume of Tiger increased.
The profitability of the DB Group in New Zealand improved considerably thanks to the restruc
turing carried out. After spinning off its wine interests and streamlining its organizational structure,
the DB Group is focusing entirely on its beer activities. Thanks to its new focus, its sales mix improv
ed and level of costs fell, resulting in a higher profitability. Via a public offer Asia Pacific Breweries
increased its participation in the brewing group from 58% to 77%.
In Papua New Guinea SP Holdings sold its interests in soft drinks and focused entirely on beer.
The political and economic situation resulted in a lower beer consumption and the brewery felt the
effects of this.
In Indonesia sales of beer by Multi Bintang Indonesia reached the pre-economic crisis level.
Its profitability improved.
On New Caledonia our brewery Grande Brasserie de Nouvelle Calédonie was faced with higher
pricing pressure as a result of competition, but managed to maintain its market share.
HEINEKEN N.V. ANNUAL REPORT 2000