eineken® volume grew
marginally with strong
brand growth in Brazil. Chile.
Argentina and Mexico, partially offset by
lower brand volume in the USA. Dos Equis
continues its solid brand performance in the
USA and Mexico with double-digit volume
growth in both markets.
The reported change in EBIT (beia) includes
a EUR70 million contribution from the first-time
consolidation of the beer operations of FEMSA.
The decrease in operating profit (beia) margin
primarily reflects the effect of this first time
consolidation. On an organic basis, EBIT (beia)
grew marginally with increased revenues
largely offset by higher marketing investment.
In Mexico, the Company's value growth strategy
continued to support strong growth in EBIT
(beia) on a pro-forma basis. This was driven
by higher pricing and cost synergies, partly
offset by increased marketing investment.
Group beer volume in Mexico on a pro-forma
12-month basis grew moderately. The
implementation of a new route-to-market and
brand portfolio strategy is expected to support
future profitability. Volume of the Tecate Light
and Dos Equis brands grew strongly reflecting
increased brand activation. Heineken® was
successfully launched in 2011 in line with the
Company's value growth strategy.
In Brazil, the overall beer market declined
slightly reflecting the effect of no increase
in minimum wages, above inflation pricing
(following a federal tax increase in April) and
unfavourable weather. This follows strong
promotional activity during the 2010 FIFA
World Cup event. Volume in Brazil grew by mid
single-digits on a pro-forma 12-month basis,
led by growth of the Heineken®, Kaiser and
Bavaria brands. EBIT (beia) was positively
impacted by volume growth and higher pricing.
The US beer market declined 2.2 per cent in
2011. as an uncertain economy continues to
impede consumer spending. The Company's
depletions (sales to retailers) decreased by
3.1 per cent, reflecting lower volume of the
Heineken® and Amstel brands. Encouragingly,
volume momentum in the US improved in
the fourth quarter, led by Heineken® and
accelerated growth of the Dos Equis brand.
EBIT (beia) in the USA declined, reflecting
lower revenues, increased freight costs and
higher marketing spend.
Higher volume of CCU, the Company's joint
venture business in Chile and Argentina, was
led by growth of the Escudo and Heineken®
brands in Chile. Profit of CCU grew in 2011
resulting in an increase in the share of net
profit recognised by HEINEKEN.
On 14 December 2011, HEINEKEN announced
it would increase its shareholding in Brasserie
Nationale d'Haiti S.A, the leading brewer in
Haiti, from 22.5 per cent to 95 per cent. The
acquisition was successfully completed in
January 2012 and is expected to be earnings
accretive and value enhancing from the first
year. The Haitian beer market offers attractive
future growth prospects.
Heineken N.V. Annual Report 2011