40 Report of the Executive Board
Regional review - Asia Pacific continued
Singapore
Asia Pacific Breweries (Singapore) benefited from
growth in the beer market driven by the good
economy, better export volume and a rise in
contract brewing volume. An influx of foreign
brands expanded the beer market, but increased
competition. In particular the Heineken and Tiger
brands contributed to volume growth.
Vietnam
The strong economy in Vietnam continues to
have a positive impact on beer consumption. The
breweries of APB achieved strong volume growth,
particularly in the southern and central regions
of the country. The Heineken brand continued
to outperform the market. The newly acquired
brands LaRue and Foster's, the latter produced
under licence, developed positively. EBIT (beia)
grew driven by better prices and higher volume.
The three breweries that were acquired at the end
of 2006 and in 2007 in the central and southern
part of the country have now been successfully
integrated and synergies in costs, brand portfolio
and distribution were realised.
Cambodia
Cambodia Brewery which is 80 per cent owned
by APB, further consolidated its position in the
market. As a result of good distribution and
efficient and effective marketing programmes,
results in terms of volume and profitability
improved significantly in a market that is growing
15 per cent annually. Anchor and Tiger continues
to be the leading brands in the market.
China
The market remains challenging with low selling
prices and increase in input costs. The Heineken
brand continues to perform well in China with
13 per cent growth despite of its 600 per cent
price premium versus local mainstream beers
as a consequence of low local beer prices.
Thailand
Growth in the beer market was mainly limited to
the mainstream and low-priced segments of the
market as a result of the economic uncertainties
in the country and consumption, distribution and
advertising restrictions. Volume of Thai Asia Pacific
Breweries was lower, but volume of the Tiger
brand grew at a double-digit rate.
Heineken N.V. Annual Report 2007