Western Hemisphere
United States
Regional Review
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Group volume
Western Hemisphere
in millions of hectolitres
Heineken's sales in the Western Hemisphere increased
from 7.8 million hi to 8.4 million hi, with the United
States and Central America accounting for most of the
growth.
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. The long-term demographic and econom
ic trends indicate good potential for turnover and profit
growth in the Central American region. Although the diffi
cult economic situation in a number of South American
countries is reflected in a downward trend in beer
consumption, the beer market in this region also offers
good long-term growth prospects for our brands, and
Heineken is therefore seeking to expand its operations in
both Central and South America. Heineken acquired inter
ests in breweries in Costa Rica, Panama and Nicaragua in
2002 and Chile in 2003.
Heineken and Amstel Light gain market share
While total US beer consumption remained virtually
flat, the import segment recorded substantial growth
and now accounts for over 11% of the total market.
Sales of our imported beers rose from 5.5 million hi to
6.2 million hi, improving Heineken USA's market share.
Our prices were raised in the course of the year.
The US beer market grew by around 1.4%, but half of that
growth was in malt-based ready-to-drink mixes (malterna-
tives). Demand for malternatives has peaked and the light
beer segment now accounts for 44% of the total beer
market. Consumer preference is turning increasingly to
imported beers and premium light beers, which has
benefited Heineken and Amstel Light, our leading brands.
We again increased our investment in marketing.
The greater emphasis on regional and cultural diversity in
our Heineken campaigns is beginning to have an effect
and is bearing fruits among African Americans and
Hispanic Americans. Heineken's principal sponsorship
activities were again the US Open tennis tournament and
the Mardi Gras festival.
A special Mardi Gras can was introduced to support our
involvement with this popular festival. A new large
HEINEKEN N.V. ANNUAL REPORT 2002
28
