Multinational brewing company Heineken is focusing its efforts on five key brands in 17 key markets after announcing third quarter sales down 3% and profits expected to veer towards the lower end of its forecast.
Heineken lager, Tiger, Amstel, Desperados and Birra Moretti are the five brands to get maximum support, while the key markets – which include Mexico, Italy, France, Spain, Brazil and the UK – are predicted to drive 90% of growth over the next five years.
The brewer is seeing falling sales in Europe, the US and Brazil but is saved by its expanding global footprint: Amstel in particular is popular in parts of Africa, India and Romania. The UK (where Le Pub just opened up to service the main brand) outperformed the rest of Europe, mostly thanks to sales of premium drinks like Murphy’s Stout, Inch’s cider and Cruzcampo lager.
Earlier this year the brewer got in trouble for hiking prices, which resulted in de-listings in some major retailers across France, the Netherlands, Germany and Spain and probably accounted for much of the 4.7% sales drop across the continent.
As well as a sluggish global economy, Heineken – like all beers – is up against increased competition from hard seltzers, spirits and low-alcohol options. In the US, weight loss drugs and Hispanic consumers’ drift away from beer have also been exacerbating factors.
Acquisitions and investments are in the pipeline, including Costa Rica-based Florida Ice & Farm Company’s beverage and retail business (spirits, wines, soft drinks and beer) which Heineken is in the process of buying in order to extend its portfolio and boost its presence across Central America.
CEO Dolf van den Brink told investors: “Our performance is not where we would like it to be. We have had decent years .we’ve had very challenging years. This is not satisfactory; we are really hungry for more and better.”
Heineken increased its marketing spend by 10% in the year to February 2025, reaching almost $3bn, and in March appointed WPP as its global shopper marketing agency, citing WPP Open and the group’s advanced AI capabilities as the reason.
