Australia
Vietnam
Strong growth in a profitable market
Prestige value boosts sales
61 Heineken N.V. Annual Report 2004 Report of the Executive Board Regional Review Asia Pacific
STRONG RECOVERY WAS THE THEME FOR THE ASIA PACIFIC ECONOMIES AND FOR HEINEKEN'S
ASIA PACIFIC OPERATIONS IN 2004. OUR BEER SALES VOLUME IN THE REGION GREW 13%
FROM 8.4 MILLION HECTOLITRES TO 9.5 MILLION HECTOLITRES OVER THE YEAR.
HAPBC also bought a 21.5% stake in Kingway Brewery Holdings, one of the most profitable listed
Chinese brewers. Kingway, its principal brand, is popular in the province of Guangdong, one of
China's most prosperous provinces with a population of 85 million, as well as in Hong Kong, Macao
and Taiwan. HAPBC and Kingway are exploring cooperation in distribution in Guangdong and
Hong Kong.
In China, sales volume grew by double digits and operating results also improved substantially
from the previous year as a result of operational improvements.
In Hong Kong, continued competition from low-priced Chinese beer and the stronger euro
resulted in lower Heineken sales volume.
In Australia, a mature market, the premium beer segment is expanding at double-digit rates as
consumers tastes develop. The Heineken brand has long been a force in this rapidly expanding
premium beer segment; a segment that makes up almost 10% of the total Australian beer market.
The launch in August 2004 of a sales and marketing joint venture with Lion Nathan Australia,
Australia's second-largest brewer, has further boosted Heineken's position in this important market.
Heineken's popularity within the premium segment and Lion Nathan's local brewing and national
sales and distribution capabilities is a powerful combination. The Heineken Lion Nathan Australia
joint venture has created an extensive sales and distribution backbone throughout the country.
We began brewing Heineken beer locally as of January 2005.
Our sponsorship of sports, such as the Australian Open Tennis tournament, the Heineken Classic
Golf tournament and Rugby World Cup has also helped to enhance the Heineken image.
Vietnam is a success story for the Heineken brand. Thanks to a series of witty Western TV advertising,
along with music-related marketing campaigns and a booming economy, sales volume of the Heineken
brand grew at a double-digit rate in 2004. Our global Thirst music programme has been extremely
popular in Vietnam, as elsewhere in the region, and has helped to raise our profile.
To meet increasing demand for the Heineken and Tiger brands, the APB brewery near Ho Chi Minh
City, will increase its production by 50% to 2.3 million hectolitres from 1.5 million hectolitres by 2006.
We expect the expanded capacity to lead to further sales volume growth.
