Canada
South America
Central America
Regional Review
Western Hemisphere
24-ounce (67-cl) Heineken can in the shape of a keg,
to supplement the existing 12-ounce keg cans, was enthu
siastically received by the market and contributed to
the sales growth. The launch was supported by special TV
commercials.
Amstel Light posted double-digit growth for the fourth
consecutive year. The brand was supported primarily with
an advertising campaign presenting Amstel Light as 'the
beer drinker's light beer', which highlighted the excellent
taste of this low-calorie product, and through sponsorship
of golf and other summer activities.
Thanks to the effort invested in recent years in improv
ing availability in the major supermarkets, Heineken beer
can now be found on the shelves in the stores operated
by all the leading groups. The focus now is on growing the
sales per outlet. The Star Chain supply-chain management
project, in which Heineken USA's new beer depots played
an important role, was completed. Lead times have been
significantly shortened and our beer now reaches the con
sumer much faster than before.
Rapid growth of the Heineken brand
Although the total Canadian beer market remained static
in terms of volume, the imported beer segment continued
to gain ground.
The Heineken brand in particular performed well. The sale
and distribution of imported Heineken and Amstel Light is
handled by Molson Canada Inc.
South American beer consumption declined slightly,
reflecting the worsening economic situation in Argentina,
Uruguay and Paraguay. Our sales, mainly of Heineken
beer, totalled 400,000 hi.
In Brazil, Heineken converted its former 14% interest in
Kaiser into a 20% interest in Cervejarias Kaiser Brasil,
a company created by Molson Inc. which purchased Kaiser
and combined it with the previously acquired Bavaria brew
ing group, in which Molson Inc. in Canada holds the remain
ing shares, is the second largest brewery in Brazil with a
market share of about 15%. The agreement with Molson
incorporates a multi-year licensing contract for brewing
and marketing Heineken beer in the premium segment
of the Brazilian beer market and Heineken will therefore
continue to be the premium beer in the brand portfolio
carried by the enlarged Kaiser organisation.
Our sales in Argentina and Uruguay were adversely
affected by the economic conditions. Heineken reached
agreement with Quilmes in January 2003 that it would sell
its 15% stake in the latter and that the licensing agree
ments for the production and sale of Heineken beer would
be terminated in due course.
At the same time, the Company also reached agreement
with its German partner Schörghuber Corporate Group to
purchase the latter's 50% interest in IRSA, which has a
majority holding in CCU, the largest brewery in Chile with
an 88% share of its home market. CCU also owns breweries
in Argentina. Chile is one of the most attractive beer
markets in South America. The licensing agreements for
the brewing and distribution of Heineken beer in Chile and
Argentina will be transferred to CCU. For Heineken, this
new alliance offers good prospects of further growth
in Chile, Argentina and otherSouth American countries.
Sales of imported Heineken beer in Bolivia and
Colombia were higher. Amstel Light was introduced in
Colombia.
The beer market in Central America was under some
pressure from slow economic growth and declining pur
chasing power. Our sales in this region increased from
725,000 hi to 790,000 hi. Heineken strengthened its mar
ket position in Central America significantly in 2002.
The Central American countries have good long-term
economic growth prospects, their populations include a
high proportion of young people and their beer markets
are growing. As most of the countries in the region have
only one or two breweries, there are opportunities for
generating above-average profits. Despite the still limited
availability, the Heineken brand is regarded as the most
prestigious international brand in the region. If the posi
tive economic trend is sustained, the Heineken brand has
good medium-term growth potential in this region.
In September, Heineken reached agreement with FIFCO
in Costa Rica on the acquisition of a 25% interest in
Florida Bebidas, the country's only brewery, which has a
98% market share. Its brands are Imperial, Pilsen, Rock Ice
and Bavaria. The company also owns a modern fruit drinks
plant and is the market leader in bottled water.
HEINEKEN N.V. ANNUAL REPORT 2002
30
