The Asia-Pacific beer market and Heineken - Focus

Heineken's senior management team has been in Vietnam this week for the company's annual Financial Markets Conference. CEO Jean-François van Boxmeer called the country the "poster child" for international beer thanks to its strong demographics and growing demand. The company is also bullish about its prospects in Asia-Pacific. Here's a snapshot of Heineken's current position in the region and how the market is developing :

Asia-Pacific stats

More than half (54%) of the population is under 35. In Europe, the figure stands ar only 40%
Some 54% is now middle-class compared to just 20% in 2009
Per capita beer consumption has plenty of headroom. Last year, the Asia-Pacific average was 29.3 litres compared to 70 litres in Europe
Premium segment growth in Asia Pacific is significantly higher than the rest of world, accounting for 8.7% of total beer volumes, compared to a global average of 3.5%

Heineken in Asia-Pacific

Heineken's volumes in the region have grown an average of 6% a year over the past three years
In the same period, sales have grown an average of 10% a year and EBIT by 14%
The region accounted for 21% of Heineken's operating profits last year, compared to 18% in 2013
Heineken claims to have market leadership in the largest number of countries in the region
The brewer has 15 first- and second-positions by volume in Asia-Pacific markets, compared to seven for Carlsberg and five for Kirin

Tiger

Heineken sees Tiger as its Asian beer. The brand grew international volumes by 24% last year compared to 3% growth for brand Heineken, according to Canadean data
The brewer has launched new extensions for Tiger - Tiger Black (brewed with black rice), Tiger Ice (brewed at -1°C) and Tiger White (a wheat beer launched in Malaysia late last year)

Market snapshots

China

Beer per-capita consumption (PCC) 40 litres
2015 beer market size 550m hectolitres
Premium segment 6% of market and super premium segment 3%

India

Beer PCC slightly below 2 litres
2015 beer market size 26m hectolitres
Strict regulations on the production, transportation, distribution, promotion, pricing and sale of alcohol

Indonesia

Beer PCC 0.7 litres
2015 beer market size 1.8m hectolitres
Recent regulation restricting beer sales in mini-markets has adversely impacted beer sales
Market and consumer behaviour is changing to adapt to the new regulations and due to an improving economic backdrop

Malaysia

Beer PCC 5.8 litres
2015 beer market size 1.8m hectolitres
External environment is challenging in the near-term, given low consumer confidence as well as low oil and commodity prices
Outlook remains positive in the medium- to long-term

Cambodia

Beer PCC 38.6 litres
2015 beer market size 6.1m hectolitres
Growing economy - the sixth fastest-growing economy in the world
Attractive demographics with young population and rising urbanisation

Vietnam

Beer PCC 41.4 litres
2015 beer market size 38m hectolitres

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