Nestlé posts 7.7% organic growth in Q1 as Heineken remains resilient amid mounting challenges

EUROPE – Nestlé, the world’s biggest company, has recorded 7.7% organic sales growth in the first quarter, driven by a boost in coffee sales and a gradual recovery in out-of-home channels. Heineken, the world’s second largest beer company, has on the other hand, managed to maintain its beer sales at 2020 levels despite of challenges such as alcohol bans and on-trade sale restrictions in a majority of its markets.   According to a statement from Nestlé, the company recorded Q1 net sales rose to CHF 21.09 billion (US$23.02 billion), up…

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Heineken commits to achieving net zero carbon emissions across entire value chain by 2040

NETHERLANDS – World’s second-largest beer company, Heineken has released its most ambitious sustainability strategy yet, announcing plans to become carbon neutral in its own production by 2030 and in its full value chain by 2040. This marks the first in a series of refreshed Brew a Better World ambitions, aimed at “building the brightest possible future for the business, for the planet and for people around the world.” It also comes on the heels of the company’s new EverGreen growth strategy which was launched in 2020 to help the company…

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Diageo to expand US RTD operations as Heineken launches Pure Piraña hard seltzer across Europe

US – UK-based alcoholic beverages giant Diageo is expanding its US ready-to-drink (RTD) operations as part of efforts to support its growth strategy in the rapidly expanding category. Consiquently, Diageo’s new Plainfield, Illinois site will be expanded to a tune of US$80 million. According to a statement from Diageo, the expansion project will include the installation of two high-speed can lines with the capacity to produce over 25 million cases of RTDs per year. Products to be produced at the Plainfield site include Smirnoff seltzers and Diageo’s newly-launched spirits-based RTD…

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Heineken appoints Harold van den Broek to succeed Laurence Debroux as CFO

NETHERLANDS – Dutch multinational brewing company Heineken has appointed career finance expert Harold van den Broek to be the company’s new Chief Finance Officer . Harold will be succeeding Laurence Debroux who will be stepping down as the brewing giant’s CFO, after the company’s annual general meeting of shareholders (AGM) on 22 April 2021. As she departs, Debroux had a successful 6 year stint at the multinational brewer. She played a key role in steering the company through the Covid-19 crisis and shaping EverGreen- Heineken’s strategic direction exploring how to…

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Coca-Cola System Brazil to produce alcoholic beverages in new partnership with Heineken

BRAZIL – The Coca-Cola system in Brazil will produce and distribute alcoholic beverages beers in HEINEKEN’s portfolio as from Mid-2021. This is part of a recent redesign of a longstanding distribution partnership between Heineken, The Coca-Cola Company, and the Coca-Cola system in Brazil. Heineken in a statement said that the Agreement marks a new milestone in the relationship among the companies. The agreement, according to the brewing major, allows the parties to better serve consumers and customers in the Brazilian market with a solid portfolio, building on the positive momentum…

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Heineken full year profits dip 35.6% prompting 8,000 job cuts globally

NETHERLANDS –Dutch multinational brewing company, Heineken has reported a full-year operating profit of €2.42 billion (about US$2.93 billion), representing an organic decrease of 35.6% . As the pandemic took its toll on the company’s global business ,the Dutch brewer said that sales in all regions declined causing its 2020 net revenue fall by 11.9% to €19.72 billion (about US$23.91 billion. Loss in operating profit was in particular driven by performance in Europe – due to on-trade closures – Mexico, South Africa and Indonesia. Operations in Mexico were suspended throughout most…

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Heineken extends dominance in Nigeria’s beer market by raising stake in Champion Breweries to 84.7%

NIGERIA – Multinational brewing company Heineken has raised its ownership in Champion Breweries with acquisition of 1,903,609,538 ordinary shares at a price of N2.6 per share through its wholly owned subsidiary, Raysun Nigeria Limited. The recent acquisition of shares worth N4.959 billion (US$12.5m), representing 24.3% stake in the local brewery has raised the ownership of Raysun to 84.7%, giving it a leverage to launch a takeover bid. This was revealed in a filing to the Nigerian Stock Exchange on January 7th, 2021. The transaction will help broaden Heineken’s dominance beyond…

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SA booze ban forces Heineken to cut workforce by 7%

SOUTH AFRICA – Heineken SA has announced that it will trim its workforce by 7% in 2021 necessitated by the tough trading environment brought by the alcohol ban. The brewer says given the continued market pressure in South Africa, it became necessary to restructure its operations and reverse some of the effects of COVID-19 pandemic. The Netherlands-based company, whose brands include Windhoek, Amstel and Soweto Gold, employs 1 000 people at in its South Africa operations, and with the 7% cuts it means 70 people will be rendered jobless. “In…

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Heineken expands zero alcohol beer portfolio with launch of Desperados Virgin 0.0%

NETHERLANDS – Dutch multinational brewing company Heineken has expanded its portfolio of zero alcohol beers with the global launch of Desperados Virgin 0.0%. The global roll out follows a successful release of the Desperados alcohol-free alternative in France last year. Desperados Virgin 0.0% is also coming to the market close to two year after the Dutch brewing company launched Heineken O.O as the first non-alcoholic beer bearing the company’s signature brand’s name Desperados Virgin 0.0% will initially be available in the Netherlands and Poland this month, followed by Belgium in…

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SA’s beer industry crosses fingers that the alcohol ban won’t prolong beyond mid-January

SOUTH AFRICA – It’s just days after the government of South Africa reinstated the ban on alcohol sales that the industry players have already started feeling the pinch brought by the move. The Beer Association of South Africa (BASA) has called for the lift of the renewed ban, saying small craft brewers would not survive if it was extended beyond mid-January. The prohibition, designed in part to ease the burden on hospitals from vehicle accidents and drinking-related violence, was implemented nationwide on December 29. However, this being the third ban…

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