Beer Volumes Growing at Heineken
26 Oct 2016 --- Beer sales were up two percent by volume in Q3 at Heineken, with the Asia Pacific region the outstanding performer in the quarter.The two percent uplift in volume in Q3 beats the previous quarter uplift of 1.8 percent and was ahead of analysts’ expectations.
Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented: “Performance in the third quarter was robust despite strong comparatives in Americas and Europe, and a tough environment in Africa Middle East & Eastern Europe.”
“Strong performance continued in key markets such as Vietnam and Mexico, with Europe also showing further positive momentum. Our full year margin expectations remain unchanged despite continued adverse economic conditions in some developing markets, as well as increasing currency headwinds.”
Heineken is facing a number of challenges, including the creation of a bigger competitor in the shape of Anheuser-Busch InBev's takeover of SABMiller and the increasing popularity of independent, craft beer makers
Its results revealed that Europe and the Americas also performed well in Q3, offsetting weaker volume sales in Africa Middle East & Eastern Europe.
Across Asia Pacific, volume sales were up over 15 percent, driven by a strong performance in Vietnam and Cambodia, mainly through sales of Tiger beer.
In China, its flagship Heineken brand performed well in the quarter.
Across the Americas region, Heineken brands which performed well including Dos Equis and Tecate Light in Mexico.
But in the US, volumes declined slightly, with volume growth of the Mexican brands, particularly Tecate, offset by lower Heineken sales.
In Europe, volumes were up 0.6 percent, helped by the good weather.
In Spain, Netherlands, France, and Italy volume development painted a positive picture but in Poland volume was flat and volume declined in Romania, Austria and the UK partly due to tough comparatives.
Across Africa Middle East & Eastern Europe, volumes were down 3.6 percent, with weak sales in Russian and Egypt.
