I \rc*7 i! I Home to some of the world's fastest- growing markets for premium international brands, South America's Heineken® distributors have developed and adopted ingenious and innovative ways of traversing the continent's vast tropical rainforests, deserts and soaring mountains. World of Heineken 40 - summer 2009 i Brazil is a country of superlatives. It has a population of almost 200 million and an area of more than 8.5 million square kilometres. Then again, there are strong contrasts between mega-cities such as Sao Paulo and remote jungle outposts. These factors characterise the diversity faced by Heineken's distribution network in Brazil. The company must effectively serve a country that covers half of the South American continent. products, consumption of international premium beers is growing very fast, with Heineken® clearly leading this growth," says Rodrigo. "Indeed, while Heineken® has been actively sold in the Brazilian market since the early 1980s, the developments over the last few years are justifiable cause for optimism. Year-on-year growth has been in double digits since 2006 and we have never before sold as much beer as we did in 2008." has proved to be one of our main strategic pillars in Brazil." In the Amazon basin, for example, beer can only be transported by truck up to a certain point, after which it must be transferred to boats of various sizes, depending on the depth of the rivers and tributaries they have to negotiate. By contrast, in the congested streets of Sao Paolo, motorcycles are used to service many points of sale. Brazil's beer market is huge - the fourth largest by volume and the second-largest profit pool in the world, says Heineken Country Manager Rodrigo Motta, where Heineken has a 17 per cent share in Femsa Brazil, part of the large South American beverages company, Femsa. Traditionally, Brazilians tended to drink mostly mainstream local beers, as well as a local sugarcane- based beverage called cachaga. However, premium products such as international beer brands, wine and whisky are now enjoying growth due to the improving local economy. "While Brazil's market of 110 million hectolitres still mostly covers mainstream Rodrigo says that keeping pace with supplying more than a million points of sale presents formidable logistical challenges. These have mostly been met by working with the existing supply infrastructure developed by soft drinks maker Coca-Cola. Rodrigo is proud of Heineken's ability to reach every point of sale with the right profile, whether in the Amazon, the Pantanal (the world's most extensive wetland), the Cerrado savannah, or huge cities like Sao Paulo, which has a population bigger than the Netherlands. "We reach all our outlets using vans, trucks, and even motorcycles and boats, depending on the circumstances. Making good use of the strength of the Coca-Cola distribution system "Our initial base of Heineken® sales was small, but between 2006 and 2009 we quadrupled our volume, which is now 225,000 hectolitres," says Rodrigo. "About 90 per cent of this is brewed locally under licence by Femsa. Beer in draught kegs and aluminium bottles - which are proving very successful - is imported from the Netherlands. Looking to the future, it is our ambition to tap into this market growth, and continue to lead the pack." 16

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World of Heineken | 2008 | | pagina 86