1
31.
VW.'.
North American market, including Canada, volumes
were flat at 6.9 million hectolitres. Amstel Light
volumes were under pressure, but the volume trend
improved in the second half of the year thanks to
a brand repositioning and a new targeted marketing
campaign which both helped to address the issue.
Some trends have crystallised in the US beer market:
first, the increasing competition of wine and spirits,
secondly, the aggressive discounting by domestic
brewers to face pressure on their volumes, and
thirdly the move towards light beers as well as
imported and specialty beers by consumers. We will
exploit opportunities in the luxury segment of the
light market and strengthen our market position
l the premium import segment.
The new management team appointed during the
year at our US operations is vigorously addressing
ne challenges of the market by bolstering our brand
portfolio through the introduction of Heineken
remium Light Lager, as well as innovative packaging
nd draught beer systems.
)ur goal for 2006 is to consolidate our position
l the US market and to fully exploit the potential
if the expanding import and light beer segments,
he launch of Heineken Premium Light will be
jpported by additional marketing campaigns.
United States
Total beer volume
Market share*
Market position*
•imported beer segment
6.9 million hectolitres
30.3 percent
2nd
Revenues increased by 12.4 percent, whereas EBIT
fell as a result of the negative exchange rate effect
and higher marketing and packaging costs.
The currency impact cut €67.3 million from EBIT.
However, a positive price mix and the first-time
consolidation of the distribution agreement with
FEMSA, boosted EBIT. The USA is one of the biggest
contributors to Heineken's profit and the profitability
per hectolitres in euros remains high. Market share of
Heineken in the USA in its import segment decreased.
Total beer volumes (including Canada) edged
slightly up to 19,000 hectolitres year-on-year.
Total depletions - sales by distributors to retailers -
were almost fiat.
Depletions of the Heineken brand rose though.
The Heineken brand performance varied across the
regions: good results were recorded mainly in the
Southern and Western regions, while the pressure,
especially on prices, remained high in the Northeast.
Heineken USA, the nation's largest
beer importer, has been a proud
sponsor of the US Open for the past
13 years. Heineken's distinction as
exclusive beer sponsor of the annual
tournament includes on-court and
off-court signage and the Red Star Café
where tennis fans can enjoy a Heineken
or Amstel Light while viewing matches
on closed-circuit TVs. In 2005,
Heineken once again presented the
Heineken Star Award, honouring
the all-time greatest moments in the
US Open's history, while raising funds
for charitable organisations.
Heineken N.V. - Annual Report 2005