Central America
Caribbean
Increased efficiency and sales volume
Strong growth due to marketing and commercial excellence
55 Heineken N.V. Annual Report 2004 Report of the Executive Board Regional Review The Americas
Heineken's sales volumes improved in Central America, rising to 0.4 million hectolitres from
0.3 million hectolitres, thanks to restructurings and increased efficiencies.
We operate in Central America in alliance with FIFCO. In Costa Rica we own a 25% interest
in Cerveceria Costa Rica, the country's only brewer. FIFCO owns 75% of that company. In Panama,
Heineken is the majority owner of Cervecerias Baru Panama, one of the country's two brewers.
FIFCO is the minority shareholder. Via a joint venture company with FIFCO, we have an indirect
interest in Nicaragua in COCECA, the country's only brewer. In 2004 we increased our indirect
interest in COCECA to 12.5% from 8%.
In Costa Rica both the beer business and the juice business has improved after the 2003
restructurings. Beer volumes were slightly higher than previous year.
In Panama the total beer market has expanded, as have sales volumes of imported Heineken.
We have focused on improving sales and distribution effectiveness.
The Heineken brand is the most widely available beer in the Caribbean, with a strong position in
each of the 31 markets. Heineken's volume growth in the Caribbean region approached 10% in 2004,
as operating companies overcame adverse weather during an active hurricane season that hit several
important markets.
Beer sales volume jumped to 1.4 million hectolitres from 1.3 million the year before. Impressive
organic growth compensated almost fully the effect of a weaker US dollar to which many of the local
currencies in the region are tied.
A programme for improving commercial strategy, based on a thorough analysis of the market
and brand position paid off in terms of strong volume and market share growth.
We grew sales volume by 8% in our most important market, Puerto Rico, significantly outpacing
the beer market that grew only 4% and boosting our market share to above 20%. Brand health is
exceptionally strong, as a result of good local marketing and the use of music-related sponsorships.
In the Bahamas, in February Commonwealth Brewery acquired the distributor Burns House and
the business has been restructured. The financial results of both Commonwealth Brewery and Burns
House are well above the results of 2003 in constant currency terms, even though the islands were hit
by several hurricanes.
The sales volume of Heineken in Trinidad doubled. The Heineken brand achieved a step change
in market share and sales volumes remain strong.
The market in Curapao remained under pressure from imported South American brands and
a weaker economy. The Heineken brand remained stable.
In Surinam the brewery recorded the highest sales volume for more than 10 years.
