Heineken toasts recovery in European beer sales

The world’s third largest brewer, which still generates the lion’s share of its revenue in Europe, experienced promising volume growth in Western European markets, including the UK, in the first half, as drinkers turned to “premium” products in particular, including the core Heineken brand.

Overall, beer volumes across the group increased 3.1pc during the first half, as the brewer also experienced strong sales in Africa and the Middle East, plus the Americas. This, combined with ongoing cost savings, helped Heineken to a 14pc improvement in net profit to €772 million (£619m) although revenue on a reported basis slipped 1.4pc to €10.2bn.

Heineken’s chief financial officer, René Hooft Graafland, said there were promising signs of a revival in Western Europe. He said: “Western European had a very good half year. After years of decline, we saw a solid volume, revenue and profit growth in Western Europe.”

Earlier this year Heineken revealed that it was making its first significant investment in Western Europe for seven years - previously all of the major brewers had chased assets in the emerging markets as sales in mature markets declined during the recession.

As part of this, Heineken, which became a significant player in the UK following its £7.8bn joint takeover of Scottish & Newcastle before the financial crisis in 2008, is ploughing £126m into improving some of its 1,250 pubs in this country and to increase production at its Manchester brewery and cider plant in Hereford.

Last month the British Beer & Pub Association reported that beers sales in this country rose at their fastest rate on record between April and June as Britons regained their thirst for the amber nectar.

Beer sales in the UK have been boosted by a boom in popularity of local, artisan and "craft" beers but the major brewers have also responded through innovation, introducing a number of new products to the market.

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