Heineken strengthens
position in Indian market
Export and
licensing operations
In Taiwan, volume of the Heineken brand
grew double digit thanks to penetration into
new regional markets and expansion of the
distribution in both the on- and the off-trade.
The Heineken brand has very strong brand
equity in the Taiwanese beer market.
In South Korea, revenue was slightly
lower organically.
In Hong Kong, revenue declined slightly
due to lower volume, which offset the price
increase. The Heineken brand experienced
a solid volume growth of 9.1 per cent
in Australia.
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With a population of 1.1 billion,
India is one of the fastest-growing
and most exciting beer markets in
the world. Consumption is being
driven by a rapidly emerging
middle class and a growing
preference for beer over
other beverages.
In 2009, the market represented
some 14.4 million hectolitres, a
comparatively small volume given
the country's large population.
However, demand has soared
in recent years, with India's per
capita consumption of 1.3 litres
increasing at double-digit rates
year on year.
Building on its existing presence
in the market, in December 2009,
Heineken announced a new
partnership for growth with
United Breweries Limited (UBL)
and Dr. Vijay Mallya. Each of
Heineken and Dr. Mallya holds a
37.5 per cent stake in UBL with the
remaining 25 per cent held
publicly. The new shareholders'
agreement allows us to add value
via the governance of UBL and
includes key terms for the
brewing and distribution of
the Heineken brand in India.
UBL's flagship beer is Kingfisher,
the number one beer brand in
India and leading Indian beer
in the international market.
As part of the agreement,
Heineken acquired APB's
operations in India in February
2010 and, in a subsequent
transaction, Heineken will transfer
these operations to UBL during
2010. At the same time, UBL will
benefit from the strength of
Heineken's global distribution
network to deliver Kingfisher to
new markets, around the world.
"This is a tremendously exciting
deal," says Onno Rombouts,
Regional Commercial Manager
Heineken Asia Pacific. "The
potential for the Heineken brand
in this largely untapped market
is enormous and we have
found Indian consumers to be
immensely savvy about the
brands they choose. We believe
the combination of the Kingfisher
and Heineken brands will fortify
our ability to shape the premium
segment and the overall beer
market in India."
www.annualreport.heineken.com
Annual Report 2009 - Heineken N.V. 43
