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Heineken Brews Comeback Plans For U.S. Market By Dan Bilefsky ProQuest document link ABSTRACT (ABSTRACT) Corona, with about 29% of the U.S. imported beer market compared with Heineken's 19%, appeals to Hispanic- Americans -- one of the country's fastest-growing segments of beer drinkers. And Grupo Modelo counts U.S. beer giant Anheuser-Busch Cos. as one of its owners, holding a little more than a 50% stake. Anheuser-Busch isn't Corona's U.S. importer, but it has encouraged its wholesalers to increase distribution for the brew. Despite a drop in beer consumption since Sept. 11, 2001, premium brands such as Heineken are still a growth business in the U.S. Mr. van der Minne says Heineken had no immediate plans to raise the U.S. price of Heineken, and he is watching closely to see what U.S. industry leader Anheuser-Busch decides to do next. August Busch IV, the brewer's president, recently hinted that it might raise prices in the fall. Frank Walters, director of research at M. Shanken Communications' Impact Databank Research, notes Corona sold 50% more beer in the U.S. last year than Heineken. In 1990, Heineken sold twice as much beer as Corona, he says. "American beer drinkers in general find Corona more drinkable than Heineken," Mr. Walters says. Even in the number two spot, Heineken remains very profitable. Corona may sell more, but Heineken still squeezes higher profit margins out of its beer because it is typically priced higher. FULL TEXT CAN HEINEKEN, the first foreign beer Americans drank after Prohibition ended, regain its cachet as America's favorite international brew? The No. 1-selling imported beer in the U.S. for most of the past century, Heineken slipped to second place in recent years, overtaken by Grupo Modelo's Corona, the Mexican beer often served garnished with a lime. Heineken NV has been trying for at least three years to catch up, spending on average about $51 million a year on marketing Heineken in the U.S. Its tactics range from Austin Powers movie promotions to a recent ad featuring hip- hop artist Jay-Z, who turns down bottles of expensive champagne in favor of a refrigerator full of Heineken. In contrast, Group Modelo has over the period spent less -- an average of only $35 million annually -- yet still sells more of its Corona. Heineken won't have an easy time unseating Corona, industry analysts say. Beer consumption in the U.S., the world's biggest market, has been stagnant over the past few years, and many brewers have struggled to woo new drinkers. The Heineken brand is well-known on the East Coast of the U.S., but it lags behind other foreign brews in the West. Corona, with about 29% of the U.S. imported beer market compared with Heineken's 19%, appeals to Hispanic- Americans -- one of the country's fastest-growing segments of beer drinkers. And Grupo Modelo counts U.S. beer giant Anheuser-Busch Cos. as one of its owners, holding a little more than a 50% stake. Anheuser-Busch isn't Corona's U.S. importer, but it has encouraged its wholesalers to increase distribution for the brew. PDF GENERATED BY PROQUEST.COM Page 1 of 4