Americas
DOS EOUi
€3,431 million
€549 million
€651 million
37.9 million hectolitres
25.9 per cent
8.2 million hectolitres
Report of the Executive Board
Regional Review
CERVEZA
CftlSTAV
Heineken N.V.
nnual Report 2010
■-I1
CERVF./A I
Revenue
EBIT
EBIT (beia)
Consolidated beer volume
Consolidated beer volume as of Group
Heineken volume in premium segment
Reported 2010 figures in the Americas region
include the beer operations of FEMSA as of
1 May 2010. These have now been successfully
integrated into Heineken.
Group beer volume in the region grew 0.4 per
cent on an organic basis. Volume growth in the
Caribbean, Canada, Chile and Argentina more
than offset lower volumes in the USA. Volume
of the Heineken brand performed well across
most countries, largely offsetting lower brand
volume in the USA.
Regional EBIT (beia), including the first-time
consolidation of the beer operations of FEMSA,
more than doubled. The beer operations of FEMSA
contributed EUR315 million to the EBIT (beia) result
for the region. On an organic basis, EBIT (beia)
grew 9.8 per cent as the effect of higher pricing
and realised cost savings exceeded the impact
of lower volumes.
EBIT (beia) of Heineken USA increased in a beer
market that declined by 2.7 per cent, reflecting
lower volumes for both domestic lager and
imported brands. Depletions - sales by distributors
to retailers - of Heineken USA developed in line
with the market. Successful marketing and
increased distribution supported strong growth
of the Dos Equis brand, partly offsetting lower
volumes of Heineken®. Volume of Newcastle
Brown Ale increased slightly.
In Mexico, EBIT (beia) of Cerveceria Cuauhtémoc
Moctezuma (CCM) grew strongly as the effect of
increased pricing, improved brand mix and cost
savings exceeded the impact of lower volumes due
to unfavourable weather and excise duty and VAT
increases. Favourable currency movements also
contributed to the increase in EBIT. Volume of CCM
developed in line with a declining market. Growth
of the Tecate Light, Indio and Dos Equis brands
partly offset lower volume for the Sol brand. As
part of our value growth strategy for this market,
we are planning to start local production of the
Heineken brand in the first half of 2011.
The beer market in Brazil benefited from a
supportive economic environment, favourable
weather and strong brand activation around
the FIFA World Cup event. The Company's key
brands Heineken, Kaiser and Bavaria all achieved
strong volume growth. Higher volume, better
pricing and cost savings all contributed to
significant EBIT (beia) growth.
Companias Cervecerias Unidas (CCU), the
Company's joint venture business with leading
positions in Chile and Argentina, achieved
higher beer volumes and profitability despite
market disruption following a major earthquake
in Chile early in the year.
In the Bahamas, Heineken acquired the remaining
shares in Commonwealth Brewery and distributor
Burns House. Heineken will sell 25 per cent of its
shares through an initial public offering in 2011.
