USA
Consolidated beer volume*
Market share*
Market position*
7.5 million hectolitres
39 per cent
2
imported beer segment
The total US beer market grew approximately
1 per cent in 2007 with import segment growth
of 2.5 per cent, once again outperforming
domestic beer growth. Over 70 per cent of the
import beer growth was generated by Heineken
USA. The speciality beers segment also showed
further growth.
Heineken USA grew volume of its combined
portfolio of Dutch and Mexican import brands
by 6 per cent despite a substantial price increase
of 3.5 per cent at the start of 2007 and lower
discounts which together translated into an
average consumer price increase of around
5-6 per cent in the key trade channels. Beer sales
volume, excluding the Femsa brands, grew 3.0
per cent at 7.7 million hectolitres whilst depletions
- sales by distributors to retailers - increased
2.3 per cent. Sales volume for the Heineken
franchise totalled 6.8 million hectolitres. Heineken
Lager and Heineken Premium Light grew sales
volume 2.7 per cent and 20 per cent respectively
and depletions by 1 per cent and 27 per cent
respectively. Both beers sold well in DraughtKeg
across the USA and marketing investment behind
both brands increased.
Heineken Premium Light in cans was introduced
in June 2007. Heineken Premium Light continues
to unlock its long-term brand potential and repeat-
purchase rates remain high. Tests of the BeerTender
were successfully completed and the concept will
be roll-out nation wide in 2008. A new advertising
agency was appointed with the aim of further
improving the marketing communication and
image of the Heineken brand.
Sales and depletions volume growth of the
Mexican brands was 14 per cent, significantly
exceeding segment growth. This excellent
performance was driven by the rapid growth of
the Dos Equis brand (+17 per cent) and the Tecate
franchise (+13.6 per cent), the latter in part driven
by the introduction of Tecate Light in selective
regions of the USA.
In April 2007, Heineken USA and Femsa announced
a 10 year extension of their existing relationship
in the USA starting 1 January 2008. Under the
terms of the agreement, Heineken USA will be
the exclusive importer, marketer and seller of the
Femsa beer brands.
Sales and depletions volume of Amstel Light
were 11 per cent lower due to weak off-trade
performance in the Northeast Region. Heineken
USA has appointed a new advertising agency for
the brand and will introduce a new proposition for
the brand based on its history, high quality and
Amsterdam origin in 2008.
Revenue of Heineken USA grew 8 per cent
organically driven by higher volumes and prices.
During the year, Heineken USA successfully re
organised its sales force and further lowered
costs in the supply chain. EBIT (beia) grew at a
single-digit rate driven by higher prices, higher
volumes and favourable shifts in the sales mix.
There was a limited adverse effect due to the
lower exchange rate of the dollar versus the euro
was limited.
Heineken N.V. Annual Report 2007
32 Report of the Executive Board
Regional review - Americas