Dutch brewer Heineken saw sales volumes fall in the UK and globally, in what its boss called a “challenging” 2023.
The beer giant saw revenue increase to €36.4 billion (£31 billion), but that was driven by price rises that came as input costs sharply rose. Profits were down, to €2.3 billion.
Heineken said it often raised prices before many of its rivals last year. That allowed customers to turn to rivals that may not have raised their prices.
The business said: “This year, we had to prioritise pricing to offset unprecedented levels
of commodity and energy inflation, often leading the market, which impacted consumer off-take.”
The amount of beer sold was down by 5%, to 24.3 billion litres, or 42.7 billion pints. That’s still enough to fill the O2 almost nine times over.
In the UK, sales volumes were down by a “mid single digits” percentage, but revenue grew by a similar pace thanks to higher prices. Heineken said its UK premium brands, Birra Moretti and Beavertown, outperformed the wide market.
The business was also hit by dramatic currency changes in Vietnam and Nigeria.
Boss Dolf van den Brink said: “I am proud of the resilience of our business and our people, and encouraged by our progress on the EverGreen priorities. After a strong 2022, 2023 proved to be challenging. Strong pricing to offset very high input and energy cost inflation and volatile macro-economic conditions in some key markets affected our volume momentum.
“Notwithstanding these difficult conditions, we continued investing in our brands and capabilities.”
Heineken shares fell by 5.8% to €87.74 today, valuing the business at a little over €50 billion.
