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The Best Beer Company in a Better World - Anheuser-Busch InBev

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0<br />

0<br />

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Million hl<br />

24 | Annual Report 2008 <strong>The</strong> Zones that drive us<br />

Lat<strong>in</strong> America North<br />

94.6<br />

100.9<br />

3.000100<br />

101.5<br />

2.715<br />

75<br />

2.00050<br />

1.831<br />

25<br />

2006 2006<br />

1.564<br />

2007 2007<br />

1.0000<br />

2008 2008<br />

Revenue Volumes<br />

NALAN<br />

2008 was a challeng<strong>in</strong>g year for beer <strong>in</strong> the Lat<strong>in</strong> America North<br />

(LAN) Zone, partly due to an early Carnival holiday, colder and<br />

wetter weather than normal and high food <strong>in</strong>flation which<br />

impacted consumer purchas<strong>in</strong>g power. Brazil closed the year with<br />

an average market share of 67.5%, a contraction of 0.3 pp as year<br />

end 2008 price <strong>in</strong>creases were not immediately followed by<br />

competitors.<br />

However, 2008 was a strong year for <strong>in</strong>novations. We <strong>in</strong>troduced<br />

successful packag<strong>in</strong>g and promotional <strong>in</strong>novations around our<br />

biggest brand, Skol, which helped to ma<strong>in</strong>ta<strong>in</strong> the brand’s<br />

momentum. We also launched Brahma Fresh <strong>in</strong> the Northeast of<br />

Brazil at the beg<strong>in</strong>n<strong>in</strong>g of the year, and by the end of the year it<br />

had already achieved a 4% share <strong>in</strong> the region and around 1% <strong>in</strong><br />

the country as a whole. Hoegaarden, Leffe and Stella Artois were<br />

also launched to all key markets, build<strong>in</strong>g our strength <strong>in</strong> the<br />

premium import segment.<br />

Our soft dr<strong>in</strong>ks operation performed well <strong>in</strong> 2008. Driven by a<br />

range of <strong>in</strong>novations it achieved 3.6% volume growth across the<br />

Zone and share growth of 0.2 pp <strong>in</strong> the key Brazilian market.<br />

A company of owners<br />

‘Quality control is vital <strong>in</strong> produc<strong>in</strong>g only the highest quality beers for<br />

our consumers. As the manager of beer processes at our Rio de Janeiro<br />

plant, I am proud to say that Brahma, Skol, Bohemia, and Antarctica<br />

have all achieved a top three rat<strong>in</strong>g as part of our Corporate Quality<br />

brand rat<strong>in</strong>gs <strong>in</strong> 2008. As a whole, the Rio de Janeiro plant was rated<br />

first place along with three other plants <strong>in</strong> Brazil. In a span of 19 months,<br />

we had no product returns.’<br />

Million euro<br />

Million hl<br />

Volumes NA contribution Revenue of Volumes 44.9 % LAN LAS Revenue Volumes WE<br />

LAN LAS<br />

LASWE<br />

WECEE<br />

Regional Process Manager, Brazil<br />

6.00040<br />

30.5<br />

33.7 30<br />

22.6<br />

5.182 5.00020<br />

4.904<br />

4.268<br />

2006 2006 2007 2007<br />

10<br />

4.0000<br />

2008 2008<br />

Revenue<br />

Million euro<br />

Million hl<br />

733<br />

39.1<br />

1.003<br />

36.1<br />

1.254<br />

33.8<br />

0<br />

2006 2006 2007 2007 2008 2008<br />

Normalized EBITDA<br />

2.00040<br />

30<br />

Million euro<br />

Million hl<br />

1.00020<br />

10<br />

0<br />

3.646 43.2<br />

3.455<br />

‘In the face of a tough market<br />

environment we have successfully<br />

focused our energy on <strong>in</strong>novation,<br />

strengthen<strong>in</strong>g and extend<strong>in</strong>g our<br />

brand portfolio and enhanc<strong>in</strong>g the<br />

bonds between our brands and<br />

consumers.’<br />

Zone President North America<br />

Zone President Lat<strong>in</strong> America North 2008<br />

49.1<br />

4.00050<br />

46.1<br />

40<br />

3.217<br />

30<br />

2.000<br />

20<br />

0<br />

2006 2006 2007 2007 2008 2008<br />

Million euro<br />

Million hl<br />

10<br />

0<br />

1.82<br />

200

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