Dutch brewe
r Heineken has reported a 17% fall in net profits to €639 million for the first half of 2013, as beer volumes continued to fall across Western Europe.
The company attributed falling demand for beer to the wet weather and weak 'consumer sentiment' in the US and in Europe. This trend was further compounded by fall-off in growth in key developing markets, which now contribute around half of the group's operating profit.
Heineken said the U.S. market was hurt by slow economic growth and poor weather. However, it said its Dos Equis, Tecate Light and Strongbow cider brands all grew strongly. Sales volumes of the Heineken brand itself were weaker.
Commenting on the results, Heineken CEO Jean-François van Boxmeer stated that while consumer confidence in Europe and the US remains 'quite subdued', higher growth markets such as Brazil and Africa had also seen a something of a 'slowdown' during the half.
"On the other hand, Asia is still going well for us, as well as Mexico," he added.
Jean-François van Boxmeer also pointed to the importance of innovation for the company, highlighting the success of lemon juice-flavoured 'Radler' style beers in particular for the brewer, utilizing Foster beer in the UK and Amstell in the Netherlands. "In most countries it has been really a phenomenal success for us over the summer," he said.
Van Boxmeer described the acquisition of Asia Pacific Breweries last year as a 'fantastic add-on to our portfolio', noting that Heineken expects it to go from 'strength to strength'.
However, while van Boxmeer was clear that the potential acquisition of a greater stake in India's United Breweries was currently 'not on the agenda' he acknowledged that Heineken's "footprint has shifted much more towards the emerging markets", adding that the potential of growth in these markets is still "enormous".
r Heineken has reported a 17% fall in net profits to €639 million for the first half of 2013, as beer volumes continued to fall across Western Europe.The company attributed falling demand for beer to the wet weather and weak 'consumer sentiment' in the US and in Europe. This trend was further compounded by fall-off in growth in key developing markets, which now contribute around half of the group's operating profit.
Heineken said the U.S. market was hurt by slow economic growth and poor weather. However, it said its Dos Equis, Tecate Light and Strongbow cider brands all grew strongly. Sales volumes of the Heineken brand itself were weaker.
Commenting on the results, Heineken CEO Jean-François van Boxmeer stated that while consumer confidence in Europe and the US remains 'quite subdued', higher growth markets such as Brazil and Africa had also seen a something of a 'slowdown' during the half.
"On the other hand, Asia is still going well for us, as well as Mexico," he added.
Jean-François van Boxmeer also pointed to the importance of innovation for the company, highlighting the success of lemon juice-flavoured 'Radler' style beers in particular for the brewer, utilizing Foster beer in the UK and Amstell in the Netherlands. "In most countries it has been really a phenomenal success for us over the summer," he said.
Van Boxmeer described the acquisition of Asia Pacific Breweries last year as a 'fantastic add-on to our portfolio', noting that Heineken expects it to go from 'strength to strength'.
However, while van Boxmeer was clear that the potential acquisition of a greater stake in India's United Breweries was currently 'not on the agenda' he acknowledged that Heineken's "footprint has shifted much more towards the emerging markets", adding that the potential of growth in these markets is still "enormous".
