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