Heineken USA: Trading Down Hurts

Dear Client: Beer volumes of Heineken USA were 8% lower than last year for the first half of the year, with Dutch brands declining 12% and Mexican brands 1% lower. HUSA STRs were down 7%, with volumes of the Dutch portfolio down 11%, Mexican portfolio up 3%, and Newcastle Brown Ale -7%. Brand Heineken was down 12% for the half, but the company says the trend is improving in the second quarter. Revenue was lower. "Improved pricing, headcount reductions and