Western Hemisphere United States Canada Regional Review "V1 R? R? Group volume Western Hemisphere in million hectolitres Heineken Group's sales in the Western Hemisphere increased from 74 t0 7-8 million hi 5-5%). with the United States making a substantial contribution to this growth. Sales in Canada were also significantly higher. Heineken and Amstel Light sales higher in a slowing market Although growth in the US beer market slowed abruptly to under 0.6%, sales of imported beers were up by 9%. Sales of our imported beers rose from 5.3 to 5.5 million hi 5%). The US beer market contracted sharply for a short time in the wake of the tragic events of 11 September. Stronger competition from premixed spirits was also a factor. The imported beer and light beer segments grew and both Heineken and Amstel Light contributed to the increase in our sales. With sales in the off-trade segment growing faster than the on-trade segment, both brands benefited from our sustained marketing and sales effort on the take-home market, which was reflected in stronger positioning and greater availability of Heineken and Amstel in all distribution channels. Our marketing strategy was revised to take greater account of regional differences and cultural diversity within our consumer base, for example by launching special campaigns for Hispanic American and African American consumers. The formation of Heineken Music Initiative Inc., a foun dation which helps talented bands and musicians to fur ther their careers, represented a major advance in our involvement in music sponsorship. Our project to improve distribution was completed with the opening of our tenth beer depot in New York State. The new distribution organisation has boosted effi ciency in the supply chain and significantly shortened the average lead time for delivery our imported beer from the brewery to the consumer. The reorganisation has enabled Heineken USA to address the market more intensively, so that it can focus more specifically on the individual distribution channels and further improve communications with their distributors in each channel. Heineken has built a strong position in the Western Hemisphere, with growing exports to the United States, Canada and Central and South America. Heineken also owns a number of breweries in the Caribbean and has licensing agreements with several brewers in Central and South America. Despite the crisis in Argentina, the long- term outlook for the South American market is favourable and Heineken is seeking to expand in that region. Strong growth in Heineken and Amstel Light sales While the rest of the market remained static, the import ed beer segment grew in 2001. For marketing and distribution, Heineken Canada works closely with the Molson brewery. The Heineken brand posted strong growth and the launch campaign for REPORT OF THE EXECUTIVE BOARD 33

Jaarverslagen en Personeelsbladen Heineken

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