The Americas 6.4 23 Market share1 United States Continued growth in the world's most profitable beer market 52 Heineken N.V. Annual Report 2004 Report of the Executive Board Regional Review Group Volume The Americas in millions of hectolitres Reference to market positions and market shares in the relevant countries is based on available market information and refer to an estimate of market ratios. 2000 2001 2002 2003 2004 7.4 7.8 8.4 12.5 14.5 Regional review Heineken's regional sales volume rose to 14.5 million hectolitres from 12.5 million hectolitres, due largely to the increasing strength of the Heineken and Amstel brands throughout the region. In the United States, in particular, packaging and marketing innovations drove our sales volumes and the market remains a focus for investment and innovation. In Central America, both sales volumes and operating results have grown as a result of restructurings completed in 2003, which have improved sales and distribution effectiveness. In South America, our interest in CCU continues to strengthen our position in Chile and Argentina. In the Caribbean, a strong focus on innovative marketing and increased efficiency across all operations has delivered an impressive increase in both sales volumes and operating results. A strong euro and the continuing weak dollar have once again weighed on results throughout the region. The operating result decreased, reflecting the weakness of the dollar and of dollar-related currencies against the euro. Heineken USA's total beer sales volume, the most profitable beer market in the world, rose 4.4% in 2004 to 6.4 million hectolitres, up from just over 6 million hectolitres in 2003. While the overall beer market was flat in 2004, as more consumers chose wine and spirits over beer, the import segment expanded approximately 2% and Heineken USA maintained its position in this growing category. While sales volume of Heineken USA rose, a weak dollar hit operating results. Our market share of the imported beer segment grew slightly to approximately 23%. Mediocre summer weather, worsened by four hurricanes in the southeast, led to a considerable drop in on-trade sales. While aggressive price cuts slightly increased trade discounting in the beer category somewhat limited our volume growth; price increases for Heineken and Amstel Light helped to preserve revenues. We increased prices by an average of 2.5% throughout the northeast, southeast and central regions. The regulatory environment also affected sales. Smoking bans in an increasing number of states ,cut on-trade business in favour of off-trade sales. In addition, several states, including Massachusetts, have changed their regulations to allow distilled spirits and beer sales on Sundays. Spirits continue to play an important role in the on-trade channel while wine is increasing share in the off-trade. Brands In June Heineken USA and FEMSA Cerveza in Mexico signed an agreement making Heineken the exclu sive national importer, marketer and seller of FEMSA's brands - Tecate, Dos Equis, Sol, Carta Blanca and Bohemia in the USA. The agreement came into effect on 1 January 2005 and will expand our imported beer segment Total beer sales million hectolitres percent 2 Market position1 position

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