Asia Pacific
China
Focus on strategic acquisitions in a high-growth market
60 Heineken N.V. Annual Report 2004 Report of the Executive Board Regional Review
Group Volume Asia Pacific 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.
Operations
Underpinning our strong position in the region is our Singapore-based joint venture with Fraser
Neave, Asia Pacific Breweries (APB). APB operates sixteen breweries in Singapore, Malaysia,
Thailand, Vietnam, Cambodia, China, New Zealand and Papua New Guinea. For the fifth consecutive
year, APB's sales volume grew at double-digit rates.
Heineken is brewed at several of APB's breweries throughout the region. In addition, we have our
own breweries in Indonesia and on New Caledonia. We also import Heineken into the region and
in some countries it is brewed under licence. Heineken beer has a strong market position, particularly
in Thailand, Vietnam, Hong Kong, Australia, New Zealand, Singapore and Taiwan.
China is an important long-term strategic market for us as the popularity of beer is rising from
a low level of per capita consumption on the back of a rapidly growing economy.
We are pursuing a China strategy of acquiring profitable breweries in high-growth provinces
and of developing our flagship brand Heineken. In addition to this, the Heineken brand development
has been improved, as well as the profitability of existing breweries. In April 2004, Heineken and
APB consolidated operations in China to form Heineken Asia Pacific Breweries China (HAPBC).
This company holds all the China operations of APB and APIPL. Heineken owns 46.1% of HAPBC.
At the same time, Shanghai APB began brewing Heineken beer locally. Following the merger, HAPBC
is reviewing plans to improve the efficiency and cost effectiveness of operations at all levels.
2000 m 7.5
2001 7.8
2002 8.0
2003 8.4
2004 9.5
