Good News And Bad News From Heineken

Global brewing giant Heineken just released its third quarter financial results and the good news is last summer’s scorching heatwave in Europe.

Here’s some of the highlights…

A prolonged heatwave that tortured Europe over the summer led to an upswing in beer consumption on “the continent.

”Volumes in Europe rose by 2.2% in the third quarter, compared with just 0.7% in the first half of the financial year. In the Americas, consolidated beer volumes rose by 8.1%, so we’ve been doing our part as well. (Well actually Mexico and Brazil did their part, sales in the US were basically flat).

But just as with craft beer which continues a growth trajectory in the US, Heineken’s rebound from a volatile first half of 2018, sales momentum did slow in some regions…

Despite sales rising across all of its global markets, growth in the Americas, Asia and Africa slowed down, according to the company’s third Q3 report.

Heineken CEO, the ever-bullish Jean-François van Boxmee, noted that the brand “continued to outperform, driven by Brazil, South Africa, France and Russia,” which benefitted greatly from hosting the World Cup.

Boxmee was also pretty upbeat about the company’s current positioning in China

”In August, we announced the signing of non-binding agreements with China Resources to join forces to win in China.”

The Dutch brewer is also home to Lagunitas, Newcastle Brown Ale (which is now also being brewed at Lagunitas’ Chicago facility) John Smith’s, Dos Equis, Murphy’s stout, and Amstel.

Overall volumes grew by 9.2%, with the company experiencing double-digit growth in a number of regions including the UK, Brazil, South Africa, France, Russia, Poland, Canada and Mexico.

And although the company didn’t provide profit or revenue figures for Q3, Boxmee did add that the global brewer’s expectations for the final quarter “remained unchanged.”

Heineken rival, AB InBev, is expected to release its own Q3 update later this week…

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