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The Puerto Rican beer market can be described as spe
cial because - unlike in other countries with an established
local brewing industry - local beers play no role of signifi
cance in Puerto Rico. Almost three-quarters of the market is
accounted for by American beers. An eighteen per cent
share is for the premium brands, a segment in which
Heineken is the market leader. An analysis of sales by types
of beer shows that the full flavour pilsners are by far the
most popular (65%), though the light segment has grown
strongly in recent years to its present level of 34%.
Microbrews and speciality beers are not significant at all
(1%).
Last year, in response to the growing popularity of light
beers, Mendez introduced Amstel Light. Elias Dunia:
"Research showed that, though the consumers in Puerto
Rico appreciated their light beer, they also felt that it lacked
the flavour of beer to some extent. So we knew we had to
position Amstel Light as a light beer with flavour. And with
a European heritage. That heritage is very important for the
consumer's quality perception. Our key message was: light
but European, plus the slogan 'Barbarian taste', says Dunia.
Via promotions and samplings in supermarkets and on
premise outlets the brand and its flavour are being drawn
to the attention of consumers. The promotions and samp
lings are supported by radio commercials and advertise
ments.
(HIILED CABINET
The Puerto Rican loves going out. Most of his social life
takes place outdoors. And why not, given such an agreeable
climate. So it's not surprising that almost three-quarters of
all beer consumption takes place in the on premise outlets.
But what exactly should we understand by 'on premise'
outlets? In Puerto Rico the definition of on premise differs
from that in other countries. How should we describe a
store where the consumer buys a bottle of Heineken from
the chilled display cabinet and drinks it straight away? Is
that on premise or is it in fact off premise?
There is something to be said for both descriptions.
Whatever the case may be, Mendez ensures that all the
22,000 licensed liquor outlets are kept supplied with beer.
The on premise outlets can be subdivided into eight differ
ent types: bars, hotels, restaurants, cafeterias, pubs (inter
national bars), discos, liquor stores and small neighbour
hood shops which also operate a small bar during the after
noon. The off premise outlets include the supermarkets and
supermarket chains, convenience stores, liquor stores (but
in this case without a cooling unit) and the cash carry
wholesalers.
Outlets in the latter category account for a substantial
proportion of Heineken sales. In these big wholesale stores
the owners of the small shops buy in their supplies. "A big
cash carry wholesaler like Montalvo has a turnover of
some 600,000 cases of Heineken a year", says Dunia.
For the past few years retailers have also been able to
buy their Heineken from Mendez' Beer Truck Division. This
service, set up in 1993, is very much appreciated by the
customers. Fifteen trucks, based all over the island, travel
along a fixed route each day, visiting the small outlets and
making sales direct from the truck. In most cases, therefore,
