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Dutch brewer Heineken has this morning announced significant changes to operating structure and its executive team in a bid to reenergise flagging sales. The group said it was changing its operating model and ways of working to “better focus” on growth opportunities and to be “more agile” in responding to consumer needs.

It has revealed a handful of changes to the management team, including chief strategy officer Chris Barrow, who will leave the business after 11 years in July 2015. His role will be phased out after his departure. During his time at Heineken Barrow has worked as managing director of Latin America and president of its Polish operations and in Brazil.

Heineken will also streamline its head office with the roles of chief marketing officer and chief sales officer being at a global level in one chief commercial officer role with Jan Derck van Karnebeek, president central and Eastern Europe and global chief sales officer, assuming this position.

The departures come less than two months after Heineken reported its slowest sales growth since 2007, which rose just 0.1% to €21.2bn.

Heineken will also regroup the business around four geographic regions, with the existing regions of Western Europe and Central and Eastern Europe united to form a single Europe region, focused primarily on the EU markets, the Africa Middle East region combined with Russia and Belarus to form a new region, Africa Middle East and Eastern Europe, and the existing Americas region and Asia Pacific region remaining the same.

“The changes announced today will make us a more agile organisation,” said chairman and CEO Jean-François van Boxmeer. “Our management structure will be flatter, our operating companies more empowered and our cost of doing business lower. The new executive team consists of proven leaders who will build on the outstanding work done by the Heineken executive committee over the last few years.”

The new structure will be operational from 1 July as Heineken aims to improving consolidated operating margin by around 40 basis points a year.

Morning update

A new poll shows falling energy prices and inflation are leaving more money in consumers’ pockets and making us more optimistic about economy than at any time in 13 years. It will make happy reading for the Tories as we enter the election campaign officially kicks off. Polling organisation GfK’s consumer confidence study showed all five of its measures of consumer confidence had picked up in the past month on the back of falling inflation and a boost to spending power from plunging energy prices. Nick Moon, managing director of social research at GfK, said: “At +4, the index is the highest it has been for almost 13 years, and it has gone up a striking eight points in just three months. Reaction to the budget has thus far been muted, but if people warm to it over the next few weeks then we may well see a further increase in the index next month. A consistently rising index in the run-up to the election is likely to be good news for the government.”

Yesterday in the City

An 8.5% leap in Ocado’s (OCDO) share price to 359.4p helped the FTSE 100 climb 36.4 points (or 0.5%) to 6,891.4 despite worries over Greece debt talks.

The online grocer – which jumped despite no news flow coming from the company or any broker notes – was one of a number of retailers to boost the blue-chip index.

Marks & Spencer (MKS) finished the day 1.5% higher at 538p after analysts forecast the decline in its general merchandise sales have slowed in the fourth quarter. WH Smith (SMWH) rose by 1.3% to 1,288p, Tesco (TSCO) was up 1.1% to 241p and Greggs (GRG) jumped 2.1% to 1,043p.

However, Morrisons (MRW) and Poundland (PLND) were two retailers which didn’t fare so well, falling 1.1% to 196.4p and 2.9% to 374.9p respectively. Discounter Poundland’s dip came as house broker Shore Capital said it expected a “slower” fourth quarter than previously forecast as it comes up against tough comparatives and currency headwinds.

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