Heineken increases market share in Ireland despite weaker lager sales

SALES volumes of the Heineken lager brand fell by 6.8% in Ireland last year, according to latest figures from the Dutch brewing giant.

The company said its Cork operations, which include Murphy’s and Beamish, still increased market share. It added that despite its sales drop, the Heineken lager brand actually outperformed the market.

While Heineken’s sales rose10% in western Europe, its Irish performance was hindered because “the severe effect of the recession meant beer consumption declined by high single digits”, it said.

Though more detailed annual figures on Heineken Ireland won’t be available until early next month, its parent company said its business here benefited from the growth of the Beamish & Crawford and Coors Light brands, in particular.

Heineken’s takeover of Scottish & Newcastle in 2008 meant that the Beamish & Crawford business, which had been owned by the British brewery, came under the control of Heineken Ireland. And though the Dutch company closed the Beamish brewery last year, it still brews the two big Cork-based stout brands at its Murphy’s brewery site.

The group also said its Irish business’s underlying revenue and EBIT (earnings before interest and tax) were down in double digit percentages, on the previous year, “due to weak volume, increased promotions and the limited scope for price increases”.

On a group-wide basis, Heineken grew its revenues by nearly 3% last year, to just over €14.7 billion and earnings before interest and tax by 63% to €1.76bn. The beer maker’s net profits were up just over 4% at €1.06bn and diluted earnings per share rose by 4.1% to €2.15.

Group chief executive and chairman, Jean-Francois van Boxmeer, said: “In one of the most challenging trading environments everwitnessed in our industry, we have delivered an outstanding financial performance, transformed our platform for future growth and built a more competitive business.”