u
n
Vietnam is the
third largest
volume market
in the world for
Heineken®
BUSINESS
HEINEKEN has laid the foundation in
Asia Pacific to accelerate growth beyond
organic market development
Theo de Rond,
Regional President
for Asia Pacific for
HEINEKEN
Around 60% of the world's
population lives in Asia,
and beer market growth in
many countries in the region is in double
digits. Like Africa, Asia's GDP growth,
positive demographics and a growing
thirst for international premium brands
means that the organic market growth
alone offers huge potential.
In 2010, HEINEKEN's earnings (EBIT) in
Asia Pacific grew by W/a year-on-year,
reflecting higher volumes, increased
pricing and lower input costs. The trend
continued into 2011. The half-year results
saw a 13% increase in total beer volumes
year-on-year, of which 7% was attributed
to organic volume growth. In Asia Pacific,
Heineken® sales are expected to increase
by around 10% every year.
Brands Worth Paying For
Heineken® also enjoys a price premium
over mainstream brands. In Vietnam,
Heineken® has a price index of 180
above the mainstream brand. "In terms
of pricing, if you take India, a bottle of
the local Kingfisher beer costs 60 rupees,
whereas a Heineken® is priced at 150
rupees," explains Theo. "And there is an
enormous group of people who will be
willing and able to pay for a premium
brand in the future."
Growing Brand Equity
Increasing Heineken® brand equity has
helped grow sales in Vietnam. Within
20 years, Vietnam has become the third
largest volume market in the world for
Heineken®, and HEINEKEN's biggest
brewery is now located in Ho Chi Minh City.
In markets with more steady growth, such
as Malaysia, the Heineken® brand has
also outperformed and Tiger has become
the number one seller in terms of
market share, with strong growth over
the last decade.
Volume growth of the Tiger brand has
been driven by increased exports and the
introduction of the Tiger Crystal cold-
filtered lager variant in 2010. "In China,
the Heineken® brand had a fresh start in
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World of HEINEKEN Quarter 1 2012
