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
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