Weak demand for beer in Europe has caused Heineken to report a drop in sales for the first quarter of 2010.

Like-for-like beer volumes for the three months to the end of March fell by 5% on the same period of 2009, to 23.5m hectolitres, Heineken said today (21 April).

Net sales fell by 3.5% on a like-for-like basis, to EUR2.9bn (US$3.9bn), as price rises and low single-digit volume growth in Africa, Asia and the Americas could not offset weakness in Europe.

Volume sales in Russia fell by 12% for the three months due to a three-fold duty tax rise on beer. Distributors had stockpiled beer at the end of 2009 in anticipation of the tax hike.   

Despite the sales decline, Heineken said that cost savings and a EUR142m gain on the transfer of brewing businesses in Southeast Asia helped it to increase net profits for the quarter. Earnings before interest and tax grew by mid-single digits, it said, without giving figures. 

The brewer attempted to shrug off the weakness in sales.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“The first quarter of the year is the least significant in terms of volume and profitability,” it said, adding that the first quarter of 2009 accounted for around a fifth of full-year sales.

Heineken said it would continue to focus on cutting debt in 2010 as its three-year Total Cost Management programme enters its second year.

Heineken will use its annual general meeting tomorrow (22 April) to ask shareholders to approve the brewer’s acquisition of Mexico’s FEMSA Cerveza.

Stay informed for just £1! *

Subscribe to Just Drinks for unbiased coverage of the global drinks industry, offering insights into the corporate strategies of beverage manufacturers and brands worldwide.


What’s included in your subscription:
  • Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
  • Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot beverages
  • Unrivalled drinks industry comment from leading sector specialists

Ready to stay informed? Subscribe now and gain access to exclusive content.

Subscribe

Have a subscription? Sign in

For further details on subscribing, click here. Need multi-user access? Explore our corporate subscriptions now.

*After your 1-month trial, your subscription will continue at £315 per year.