Heineken CEO to leave brewer after six years as boss

Heineken CEO Dolf van den Brink is stepping down from his role leading the brewing giant at the end of May this year.

The company said in a statement released this morning Van den Brink had decided, in consultation with the supervisory board, that after six years at the helm it was the right time to hand over responsibilities to someone else.

Heineken has kicked off a search for a successor to the top job, while Van den Brink has agreed to stay with the business in an advisory role for eight months as part of a transition period, starting 1 June.

“After six years as CEO, and more than 28 years at Heineken, I believe this is the right moment to transition leadership as the company prepares for the next phase of the EverGreen strategy,” Van den Brink said.

“The past years have been marked by significant change as Heineken progressed through its transformation and has now reached a stage where a transition in leadership will best serve the company in further executing its long-term ambitions. Over the coming months, I remain fully focused on disciplined execution of our strategy and to ensure a smooth transition.”

Van den Brink took charge of Heineken from Jean-François van Boxmeer in June 2020, dealing with the challenges facing the hospitality sector during the pandemic.

Shares in Heineken fell 3% to €67.98 as markets opened this morning. The stock is down around 16% over the course of Van den Brink’s time as CEO.

Chairman Peter Wennink added: “The supervisory board is grateful to Dolf for his leadership and long-standing commitment to Heineken, including guiding the company through a demanding period of transformation, delivering on EverGreen 2025, while navigating a challenging external environment.

“With the launch of EverGreen 2030, Dolf has set out a compelling strategy for the future of Heineken, and the supervisory board greatly values his contribution. The next phase will focus on bringing this strategy to life through disciplined execution of our strategic growth ambitions. With this in mind, the supervisory board agrees this is the right moment to start the succession process to secure strong leadership for the future.”

The announcement follows Heineken warning in October that its profits for the year would come in at the lower end of expectations after volumes declined in the third quarter.

The group has struggled with weak demand, particularly in Europe and the Americas, amid macroeconomic volatility.

Heineken said it would now focus on five key brands in 17 global markets as part of its updated five-year growth strategy.

Jefferies analyst Edward Mundy said this morning he did not expect any major change in strategy from Van den Brink’s successor.

“Dolf has done the hard yards through the initial EverGreen work and now the sharpened strategy. This has taken place during a period of huge volatility given Covid, Russia/Ukraine and inflation, amongst others, and there has been significant change at the company,” he added.

“We would expect the chairman of the board to look both internal and external for his replacement. The strategic work is done, now it is a case of further executing the strategy to drive value at Heineken.”

Bernstein analyst Trevor Stirling highlighted the numerous challenges Van den Brink has dealt with during his time in charge of Heineken, including the impact of Covid, major restructuring and cost-cutting implemented under the first phase of project EverGreen, unprecedented inflation in the brewing industry, major acquisitions and the updated EverGreen strategy.

Stirling said it was “a tough agenda for anyone to deal with”.

“It’s a complete understatement to say that the six years since have been extremely turbulent,” he added.