Heineken Reports Weaker Sales Volumes Amid Strong Premium Demand

Heineken, the Dutch brewing giant, has announced weaker-than-expected sales volumes for the first half of 2023, despite a robust demand for its premium brands. The company attributed the pressure on beer volumes in Europe to adverse weather conditions in June, although overall sales were still higher compared to the previous year. Heineken reported revenues of €17.8 billion (£15 billion), reflecting a 6% organic net revenue growth, primarily driven by price increases and a 2.1% rise in beer sales volume. The flagship Heineken beer brand experienced notable growth, with volumes increasing by 9.2%. The premium beer segment as a whole saw a 5% growth, while the low and no-alcohol category surged, with Heineken 0.0 witnessing a remarkable 14% increase in sales. Despite the challenges posed by poor weather, the company managed to gain market share in most European markets. Dolf van den Brink, Heineken's CEO, expressed satisfaction with the company's performance, stating, “We delivered a solid first half of the year.” Looking ahead, Heineken plans to significantly increase its investment in market and sales expenditures in the second half of the year, particularly in key markets. Analysts noted that while Heineken's results were slightly below market expectations, the company’s ability to gain market share amid heightened competition was commendable. However, the reliance on price hikes to bolster revenue raised concerns about the sustainability of this growth strategy.