Asia Pacific (continued)
Asia Pacific Breweries
United Breweries, India
Heineken's own operations
42 Annual Report 2009 - Heineken N.V.
Report of the Executive Board
Consolidated beer volume:
10.7 million hectolitres
Consolidated beer volume:
6.9 million hectolitres
Market share: 48.0%
Market position: 1
Profit of APB increased substantially, mainly
driven by strong performances in Singapore,
Indo-China and Papua New Guinea.
In Vietnam, beer consumption continued
to grow (+10 per cent), in particular in the
mainstream segment. APB posted volume,
revenue and profit gains as a result of the
growth in Heineken and Larue volumes.
In Singapore, profit of Asia Pacific Breweries
(Singapore) increased 25 per cent driven by
a 3 per cent higher domestic and export
volume, better prices and costs savings.
Volume of the Tiger brand increased, driven
by a new advertising campaign and football
sponsorships. The Heineken brand performed
well thanks to the success of the Heineken
Green Room, Formula One Rocks and other
The portfolio of imported brands was
extended with Bulmer's Original cider,
Newcastle Brown Ale and John Smith's
bitter from Heineken UK.
United Breweries Limited (UBL) is the market
leader in India with a market share of 48 per
cent and sells the leading and only national
beer brand Kingfisher. Heineken holds a
37.5 per cent stake in the company.
The company continued to enjoy double-digit
volume growth, and in the quarter ended
31 December 2009 reached a market share of
53 per cent. Profitability improved as a result
of volume growth and improved efficiency.
On 7 December 2009, Heineken signed a
new shareholders' agreement with Dr. Vijay
Mallya, in respect of UBL. The new agreement
creates a strong partnership that will drive
In Papua New Guinea, one of APB's most
profitable beer markets, South Pacific
Brewery's revenue increased 20 per cent
driven by a 4 per cent higher volume and
price increases. In particular, SP lager, the
country's leading beer brand, reported
strong volume growth. Profit increased
substantially. To keep pace with volume
growth SPB started an investment
programme to expand and upgrade its
In China key focus is on the premium brands
Tiger and Heineken, whilst exposure to the
extremely low margin mainstream segment
remains intentionally limited. Operating
profit improved substantially, thanks to
better pricing, improved sales mix and
intensified distribution. However, overall,
it remained slightly negative.
Volume of Thai APB, in which APB holds a
minority stake, suffered from a declining
beer market due to the political and
economic environment, regulatory
restrictions and a drop in tourist numbers.
growth in one of the world's fastest-growing
and most exciting beer markets. An
agreement was also reached on the key
terms for brewing and distributing the
Heineken brand by UBL in India. In addition,
Heineken acquired APB's breweries in India
in February 2010 and intends to transfer
these to UBL during 2010.
India has a population of more than 1.1 billion
of whom 70 per cent are younger than 30 year
of age. In 2009, the beer market totalled
14.4 million hectolitres. Beer consumption is
still low at 1.3 litres per capita, but has been
growing by double digits annually.
Consolidated beer volume grew both in
Indonesia and Nouvelle Caledonie. Revenue
and EBIT of Multi Bintang Indonesia grew
double digits driven by price increases
across the entire portfolio, a better sales
mix and cost control.
EBIT of Grande Brasserie de Nouvelle
Caledonie increased strongly due to higher
volume, a better sales mix, increased
distribution and higher prices.