32. Regional review continued
In terms of brands, Heineken
posted positive growth across
the Caribbean region and remains
the most widely available beer,
with a strong position in each
of 31 regional markets.
A top priority in the US is the boosting of the growth
of the Heineken brand. In this context we increased
our focus on new campaigns, and we introduced
the 'clear plastic label', which was well received
by consumers.
As from March 2006 we will introduce a unique line
extension - Heineken Premium Light. This beer
combines a distinctive taste with lower alcohol
content, fewer calories and carbohydrates, and
will be positioned in the luxury segment of the light
market. This light market represents half of the total
US market and is still growing.
A very important and successful development for
Heineken this year is the distribution agreement
with FEMSA. For a three-year period starting in 2005,
we are the exclusive national importer, marketer
and seller of the brands Tecate®, Dos Equis®, Sol®,
Carta Blanca® and Bohemia®. Sales volumes of
FEMSA brands added 2.2 million hectolitres to
our volume, further improving and completing our
portfolio across the US.
Heineken USA and Heineken N.V. (and in certain
cases other Heineken companies and Heineken
Holding N.V.) have been named as defendants in
purported 'class action' lawsuits filed in nine states.
The lawsuits claim that Heineken companies, along
with other producers and distributors of alcohol
beverages, have unlawfully advertised and marketed
products to underage people. Heineken is defending
vigorously against these accusations as Heineken
companies advertise and market their products
lawfully to people of legal drinking age.
In 2005, two of the lawsuits were dismissed:
the court in the lawsuit pending in the State
of Colorado dismissed that case, although the
plaintiffs have appealed that ruling, and the plaintiff
himself voluntarily dismissed the lawsuit he brought
in the State of Florida. Heineken has filed, or will
be filing in 2006, motions to dismiss all cases at the
initial pleading stage.
Heineken N.V. - Annual Report 2005