Heineken is to concentrate sales efforts on five key brands in 17 global markets as part of an updated five-year strategy for growth.
Depsite weak consumer demand and rising costs, the world’s second-largest brewer has pledged to deliver mid-single digit organic sales growth every year until 2030 – with profit growth outstripping the topline uplift.
“Our performance is not where we would like it to be. We have had decent years. We’ve had very challenging years,” CEO Dolf van den Brink told investors at Heineken’s Capital Markets Day in Seville. “This is not satisfactory – we are really hungry for more and better.”
Growth would be driven by seven “focus growth markets”, as well as “targeted acquisitions and divestments” and a greater focus on beyond beer and in low & no alcohol, Heineken said.
The markets – which include Mexico, Italy, France, Spain, Brazil and the UK – would drive 90% of all growth between now and 2030, Heineken said.
Brands that would benefit from additional resources, meanwhile, included its namesake Heineken lager, as well as Tiger, Amstel, Desperados and Birra Moretti.
Other markets with less potential could be exited, while underperforming brands could be divested, van den Brink said.
Meanwhile, having made €3bn in cost savings since 2019, Heineken said it would deliver a further €500m in annual gross savings between 2025 and 2030, with free-cash conversion of more than 90%.
The brewer has already announced a restructure of its Amdsterdam headquarters that will affect around 400 roles.
It is also expanding its Heineken Business Services division with new digital technologies to drive further efficiencies.
The new strategy was unveiled by Heineken after the brewer admitted it would sell less beer again in 2025, following a weak third quarter in which volumes shrunk in Europe and the Americas.
Heineken shares were down 0.6% in mid-morning trading.
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