38.
Revenues grew by 7 percent. Group volume grew
by 13 percent to 10.8 million hectolitres and EBIT
surged €2.9 million despite increased operating
costs. This performance was largely due to strong
performances by markets such as Indochina
(Cambodia and Vietnam), New Zealand, Taiwan,
Papua New Guinea, Australia and Indonesia.
In Cambodia and China we saw growth in excess
of 20 percent and in Vietnam volumes showed
double-digit growth. Trading was particularly strong
in China, the world's largest beer market, in the first
full operating year for Heineken-APB (China) Pte Ltd
(Heineken-APB).
Growth of the Heineken brand, critical to our regional
strategy, showed strong organic volume growth
of more than 12 percent. This is the fastest growth
of any of our regions. The Tiger brand reaffirmed
its strong position in the market, despite aggressive
competition.
The introduction of Cheers®, a new brand in the
mainstream segment, in Thailand is a further step
in the strengthening of our brand portfolio and
demonstrates our increased focus on the high-
growth mainstream segment in that country.
Consumer-focused innovation played an important
role in the region's growth. Following the successful
introduction of the Heineken DraughtKeg in Europe,
the portable beer system was rolled out in almost
all of the markets in Asia. We also introduced a new
draught beer system for smaller outlets, in Australia,
Thailand, Singapore, Malaysia and Vietnam,
an advance which helps ensure the high quality
of our beer.
We have also continued our strategy of selective
acquisitions. In March, Heineken-APB acquired
a 40 percent stake in Jiangsu DaFuHao Breweries
Co, Ltd (DaFuHao), an important player in the key
market of Jiangsu. DaFuHao owns four breweries
with a total capacity of 3.5 million hectolitres in
the Jiangsu province of China. It went on to acquire
another 1-million hectolitre brewery in the Wujiang
district in the same province. Heineken-APB controls
a 21 percent stake in Kingway, the leading player
in the Guandong province. In September, Asia Pacific
Breweries acquired a 60 percent stake in a brewery
in Sri Lanka and re-named it Asia Pacific Brewery
(Lanka). It then went on to announce the construction
of a new brewery in Mongolia due to be completed
in 2007.
A new mainstream beer brand. Cheers,
was launched in Thailand in October
2005. With an alcohol content of 5.5%,
full flavour, smooth taste and moderate
price, Cheers was designed to meet
a specific customer demand. With the
mainstream segment in Thailand showing
growth. Cheers enables Heineken to tap
into this opportunity and ensures our
operation enhances profitability.
Heineken N.V. - Annual Report 2005
Give-away promotions in the Chinese
Channel are defined as effective volume
drivers during peak seasons. In addition,
the 'food' platform was further extended
from traditional dining utensils in the
consumer promotion. This strategy resulted
in growth of availability and sales volume.