53 Heineken N.V. Annual Report 2004 Report of the Executive Board Regional Review The Americas
HEINEKEN HAS BUILT A STRONG POSITION IN THE AMERICAS, WITH EXPORTS TO THE UNITED STATES,
CENTRAL AMERICA AND THE CARIBBEAN. HEINEKEN ALSO OWNS A NUMBER OF BREWERIES IN THE CARIBBEAN
AND CENTRAL AMERICA AND HAS INTERESTS IN AND LICENSING AGREEMENTS WITH SEVERAL BREWERIES IN
CENTRAL AND SOUTH AMERICA. THE REGION AS A WHOLE, AND LATIN AND SOUTH AMERICA IN PARTICULAR,
ARE STILL PREDICTED TO OFFER GROWTH OPPORTUNITIES IN THE FUTURE.
portfolio of strong imported beer brands, helping us increase our leadership position in this segment
among Hispanic Americans, the most rapidly growing consumer group in the US. Alongside this,
Mexican beers are also gaining popularity with the wider group of beer drinkers.
By a balanced regional approach and providing customers with relevant packaging types, we
boosted the number of occasions for consumers to purchase and enjoy Heineken. We successfully
introduced a new 18 pack in Atlanta and Baltimore to capitalise on the consumer trend towards larger
pack sizes. Another packaging innovation was our new 1.5 litre bottle, designed for festive occasions.
Shaped like a champagne bottle, it is sold in both the on- and off-trade, offering a touch of prestige to
the consumer.
Heineken sponsored the 2004 Grammy Awards. Viewed by more than 28 million Americans, our
exposure strengthened off-trade sales. In addition, two new music-themed Heineken TV spots, 'Piracy'
and 'Street Music', aired during the Grammy telecast. Heineken also continued its sponsorship of the
Heineken House Party and Latin Grammy's.
A market specific sales and marketing plan designed to accelerate volume growth of Heineken,
was launched in Baltimore and Philadelphia. Our sales volume in those regions grew by double-digit,
or high single-digit percentages. We plan to expand this project into other metropolitan regions
in 2005.
We also launched a sales and marketing initiative designed to strengthen the leadership of the
Heineken brand in New York City with enhanced category management, increased merchandising
activity in key on- and off-trade accounts. Although it is too early to quantify the success in sales terms,
we are confident it will boost our presence and sales volume in the region.
Amstel Light maintained growth with the help of focused marketing efforts such as sponsorships
of sporting and entertainment events. Amstel Light was the official sponsor of the PGA of America
and other golfing events such as the Amstel Light Iceland Open.
We launched three new commercials, highlighting Amstel Light 12-pack with the slogan 'Taste
Great, Low Carbs, Low Calories' in 2004. In addition, the 'Who says you can't' campaign was expanded
with an Amstel Light summer commercial.
In terms of packaging innovation, we debuted the Amstel Light 'Fridgepack' in eight markets.
Class action lawsuits
Heineken USA and Heineken N.V. are defending purported 'class action' lawsuits in four states.
The lawsuits claim that we, along with other producers and distributors of alcoholic beverages, have
aimed our advertising and marketing to underage people. We are defending ourselves vigorously
against these accusations, as Heineken companies aim beer advertising and marketing only to people
above the legal drinking age. Our legal team has filed, or will be filing in 2005, motions to dismiss all
four cases at the initial pleading stage.
Awards
Fortune Magazine has named Heineken USA one of'America's 25 Best Places to Work' among the
category of medium-sized companies in the United States. This award is a great endorsement of our
collective efforts to make Heineken USA a preferred employer.
