RIO DE JANEIRO, BRAZIL – Brazil has become the largest global market for the Heineken beer brand, the company said on Wednesday, February 12th. The Dutch beverage company reported 4.1 percent growth in global sales volume in Q4, with the strongest increases in Brazil, Vietnam, and Cambodia.
“Brazil is now Heineken‘s largest world market and, with the addition of the UK and Nigeria, 12 markets now sell more than one million hectoliters of the brand,” the company said in a statement, reporting figures for the final quarter of 2019.
According to the company, considering only the Heineken brand, the growth in sales volume in the last three months of the year reached 12 percent, accumulating an increase of 8.3 percent in 2019, the best result in a decade.
“The brand grew in all regions with double-digit growth in more than 40 markets, including Brazil, Mexico, South Africa, Nigeria, the United Kingdom, Romania, and Germany,” the company said in its balance report. The highest regional growth was achieved in the Americas, with an increase of 16.2 percent.
Heineken, the second largest brewery in the world, recorded a 13 percent growth in net income in 2019, compared to the previous year, to €2.16 billion.
In addition to Heineken beer, the company emphasized the “sharp growth” in sales of the Amstel brand in Brazil and in countries such as Mexico, Russia, South Africa, and the United Kingdom.
Questioned by G1, the company did not disclose specific figures on its operations in Brazil. It only reported that the volume of beer in the country grew by a single digit in 2019, “growing by two digits in the fourth quarter”.
Heineken bought the Brazilian operations of Japan’s Kirin in 2017 and has since become the country’s second-largest brewery, behind Ambev.
The group’s beer portfolio in Brazil includes the Sol, Kaiser, Bavaria, Eisenbahn, Baden Baden, Devassa, Schin, Glacial, No Grau, and Kirin Ichiban brands, as well as soft drink brands Schin Water, Schin Tonic, Skinka, Itubaína, Viva Schin and FYs soft drinks.
Heineken expects higher profit in 2020
Heineken expects the lower costs of barley and aluminum to help increase profits this year, when its CEO will step down, according to Reuters.
The company’s shares skyrocketed more than six percent in Wednesday’s trading session, with investors positively reflecting solid fourth-quarter results.
The company said revenues are expected to rise this year with higher volumes, prices, and consumers switching to more expensive beers.
Along with a more moderate increase in supply costs, the company is expected to post a single-digit percentage increase in operating profit in 2020, adding that it is too early to assess the impact of the coronavirus outbreak on its business.
“We are cautious, we are only analyzing the situation, but it certainly is not paralyzing, that would be a very strong word, but it will have some consequences,” said Jean-François van Boxmeer, the outgoing CEO, via a teleconferencing session.
Belgian Van Boxmeer, CEO since 2005, is expected to leave office on June 1st, one year earlier than expected. He will be succeeded by the head of Asian operations, Dutchman Dolf van den Brink, Heineken announced on Tuesday.
Source: G1