Later this week, Heineken releases a trading update, covering the first quarter of its 2018. Here’s a look at the events that shaped the three months to the end of March for the brewer.
- After a quiet start to the quarter, the end of January saw Heineken launch its 0.0 zero-alcohol version of its namesake brand in Canada. The roll-out of 0.0, which launched in 2017, signalled its entry into North America. Will the US be next?
- Speaking of the US, the brewer took its counter-top draught system, Blade, to the market at the start of February. Designed for the small-scale on-premise, the concept uses an eight-litre disposable PET keg and the beer stays fresh for 30 days
- A day later, and the group’s Spanish unit warned of around 220 job losses as a result of “efficiency and continuous improvement” in its operations in the country. Heineken employs about 2,600 in Spain
- Also in February, the CMO of Heineken in the US quit the role to join Diageo in the country. The departure of Nuno Teles will be followed by Jonnie Cahill, the current global commerce senior director for low- and no-alcohol, assuming the position this month
- Full-year results for 2017 were reported later in the month, with sales in 2017 increasing by 5%. Africa, the Middle East & Europe was the top reporting division, posting a combined 13.5% jump in sales
Heineken full-year 2017 by region – results data
- While Spain was set to face cuts, Heineken’s operations in France were given a financial boost, with US$25m being earmarked for the modernisation of production facilities and the enhancement of the group’s sites in Mons-en-Baroeul in northern France, as well as in Marseilles and Schiltigheim, near Strasbourg
- Meanwhile, in Mexico, the group opened its seventh brewery towards the end of February. The facility, in Meoqui, Chihuahua, represents the largest greenfield project in Heineken’s history
- At the start of March, just-drinks published its long-form look at Heineken’s performance trends over the last five years
What can the beer industry learn from Heineken? – Comment
- Speculation mounted in March that the group may offload its China business to the owner of the Snow beer brand, China Resources Snow Breweries. As Heineken declined to comment on the reports, Bernstein analyst Euan McLeish played down the likelihood of a divestment
- A dab of controversy closed the quarter, when the brewer was the focus of a social media storm in the US regarding its ‘Lighter is Better’ marketing activation. “The line has been misinterpreted by some people,” the company said
Click here for Heineken’s company page on just-drinks
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