Asia/Pacific
Regional Review
o
co °o
ojb qP) qN QTV
Group volume
Asia/Pacific
in millions of hectolitres
Apart from China, the countries of the Asia/Pacific
region remained economically weak in 2002. Our sales
in the region increased from 7 8 million hi to 8.0 million
hi. Sales of Heineken beer developed strongly, espe
cially in Thailand and Vietnam.
Heineken has built a strong position in this region. The
main pillar supporting that position is Asia Pacific Brew
eries, 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 has its own operating
companies in Indonesia and on New Caledonia. Imported
Heineken beer is available in several countries in the
region and in some it is brewed under licence. Heineken's
market position is particularly strong in Thailand, Vietnam,
Hong Kong and Taiwan.
In China, the process of consolidation in the beer mar
ket continued. The Chinese market is growing rapidly,
but with little scope for good profit margins and as yet few
growth opportunities for international premium beers.
The large brewers aspire to national coverage, which
translates into keener competition and higher marketing
costs. Heineken sees China as a long-term growth market
and is confident of achieving growth through a com
bination of local breweries, with their own brands and dis
tribution networks, and the Heineken brand. Asia Pacific
Breweries sold more beer in China, but the result was
depressed to some extent by the heavy investment in
marketing. Hainan Asia Pacific Brewery's sales were down
and its result was lower, but Shanghai Asia Pacific Brew
ery's sales improved, thanks mainly to the growth of the
Reeb Superlite and Tiger brands. Sales of Heineken beer
in China were weakened by strong competition from local
beers and changes in the distribution system. Hong Kong's
economy remained lacklustre and beer consumption
again declined. Imported beers, including Heineken, lost
market share to low-priced Chinese beers.
Despite the deteriorating economic situation in
Singapore, Asia Pacific Breweries Singapore achieved
higher sales, an improved result and growth in market
share. On-trade sales received a major boost from the soc
cer World Cup in July. The success of Tiger's 'What time is
it?' campaign created a more youthful and aspiring image
fortheTiger brand. The Heineken brand developed excep
tionally well.
In Thailand, the growth in the beer market levelled off,
but the premium segment continued to expand. Sales of
Heineken beer rose sharply. Thai Asia Pacific Brewery's
HEINEKEN N.V. ANNUAL REPORT 2002
36
