Americas
Heineken Premium Light
"The Americas contributed almost
40 per cent to the volumes of the
Heineken brand in the international
premium segment. I am proud
of the growth achieved by this
brand in our region and I am also
confident that improvements
in the route-to-market we are
pursuing in a number of important
markets in Latin America, will
allow us to capitalise on the
preference consumers give
to our iconic brand."
Jaw-Droppingly Smooth
Report of the Executive Board
Regional Review
continued
Revenue
€2.0 billion
EBIT
€267.2 million
EBIT (BEIA)
€267.2 million
Consolidated beer volume
13.2 million hectolitres
Heineken group volume
8.6 million hectolitres
Consolidated beer volume
In millions of hectolitres
2002 7.9
2003 B^^^B^^BI^^MB 10.1
2004 11.5
2005 BM^MB^HB^MBM 11.8
2006 13.2
Massimo vori Wunster,
President Heineken Americas
The Americas is one of our most profitable
regions. The position of the Heineken brand
is strong and was further bolstered by the
successful launch of Heineken Premium Light,
the success of the FEMSA portfolio in the USA
and by a strong performance in Latin America.
The Americas reported robust revenue growth
of 14 per cent. All major markets in the region
developed well. The USA, Canada, Chile and
Argentina all turned in strong volume growth,
up 12 per cent.
The Heineken brand grew 17 per cent to 8.6
million hectolitres, supported by the growth
in the USA and the excellent performance in
Canada and Chile.
In the USA, the Heineken brand grew by over
1 million hectolitres, the biggest jump ever. The
introduction of Heineken Premium Light in the
USA met with resounding success, selling 680,000
hectolitres since its launch in March and helping
to lift the growth rate of Heineken Lager.
In Canada, Heineken brand volumes enjoyed
double-digit growth, reaching 0.4 million
hectolitres, benefiting from the sterling efforts
of our partner, Molson Coors.
Despite the high marketing investment in
Heineken Premium Light, the higher costs of
packaging and overall supply-chain costs, the
region's EBIT was slightly up. This is due to the
increased volume and better pricing achieved
across the region. Fluctuations in exchange rate
had a slightly negative effect at net-profit line.
Q/l Heineken N.V.
O4* Annual Report 2006
riported beer
The Americas remains one of our most profitable regions,
aided by popularity of mini-kegs and the 'halo effect' of the
ntroduction of Heineken Premium Light. Import and specialty
oeers perform strongly in the USA. Americans know that their
Heineken beer they drink has been imported.
New Heineken Premium Light
Heineken
Light beer is defined as beer lower in calories, carbohydrates
and alcohol content. In 2006 the US light beer market
exceeded the regular market in volumes, accounting for
121 million hectolitres. This segment continued to grow
in 2006 and offers new opportunities, as consumers seek
to trade up, creating a luxury light segment.
Heineken Premium Light is positioned as the premium beer
in the luxury light segment, offering unique brand image,
excellent taste and attractive packaging.
After a test marketing campaign in 2005, the nationwide
introduction of the 12-ounce bottle took place in March and
April 2006. To date, penetration in the supermarket and liquor
store channels is high, whilst there is still plenty of room for
expansion in the on-trade and convenience stores. Further
expansion will also be achieved by the planned introduction
of cans and DraughtKeg and by increasing the volume per
retail outlet.
Since American beer drinkers know Heineken as a full-
flavoured European beer only, we placed great emphasis
on sampling. In parallel, a new marketing campaign was
executed, with broad use of on-site events and online
communication, supported by new television commercials
in English and Spanish.
Heineken estimated total volumes of 400,000 hectolitres
for 2006, but results were ahead of our own forecast and
actual sales settled at 680,000 hectolitres, 70 per cent
ahead of plans.
Compared to Heineken Lager, the consumer and geographical
profile of Heineken Premium Light shows a higher incidence
of females and Hispanic beer drinkers. Geographically, it is
more evenly spread across the states, with higher sales in
the North East and in the Midwest.
Heineken N.V. Q C
Annual Report 2006O3