Asia/Pacific
-I
Regional Review
o
Is-"
v V <vu t
Group volume
Asia/Pacific
in million hectolitres
Although, after the improvement in 2000, economic
growth in the Asia/Pacific region lost momentum in
2001, the beer market still achieved some growth.
Heineken Group's sales in the region increased from
7-5 to 7-8 million hi 4%), with sales of Heineken beer
growing strongly especially in Thailand and Vietnam.
One of the main pillars supporting Heineken's strong posi
tion in this region is Asia Pacific Breweries, a Singapore-
based joint venture between Heineken and Fraser&
Neave, which has interests in many breweries in the
region. Heineken beer is produced at several Asia Pacific
Breweries plants.
Heineken also has its own operating companies in
Indonesia and on New Caledonia. Imported Heineken beer
is available in many countries in the region and the
Heineken brand has built a strong position, especially in
China, Thailand, Vietnam, Hong Kong and Taiwan.
Agreements have been entered into with local breweries
in several countries to produce Heineken beer under
licence.
High priority was given to building the Heineken brand
inChina.Stronger competition from local beersinthe
premium segment brought pressure to bear on margins
and sales of imported Heineken beer were slightly lower.
We also worked hard to strengthen our local breweries'
brands. The brewery in Shanghai launched Reeb
Superlight, to develop the Reeb brand and take advantage
of the growing demand for light beers. Shanghai Asia
Pacific Breweries losses were drastically reduced and the
brewery on the island of Hainan, which was commissioned
in 1997, moved into profit for the first time.
InSingapore, where the beer market recorded 2.5%
growth, Asia Pacific Breweries was able to increase its
market share and posted an improved result. Sales of Tiger
beer were higher, but stout fell short of the previous year's
level. Exports from Singapore were sharply higher.
In Vietnam, the beer market benefited from the rapidly
improving economy. Vietnam Brewery had an excellent
year, reporting increased sales and an improved result. In
the premium segment, Heineken and Tiger sales were
higher and both brands gained market share. Although
marketing support for Bivina, a mainstream beer on which
the margins are lower than on Heineken and Tiger, was
scaled down, sales volume remained stable. Hatay
Brewery, our second brewery in Vietnam, is currently
under construction and is expected to come on stream in
October 2003.
HEINEKEN N.V. ANNUAL REPORT 2001
40
