Heineken sales suffer global slowdown

Dutch brewing giant Heineken today warned sales of its beers had gone flat after a series of world events hit demand from drinkers.

Heineken said net profit for the first half of 2003 would be roughly the same as last year.

In a statement, Heineken said lower beer sales had been recorded in the important markets of the US, the Netherlands, Greece, France and the Far East.

Demand for beer is declining overall as drinkers turn to alternative tipples such as wine and spirits-based mixers.

But Heineken today blamed several factors as having an adverse effect on beer drinking, including the economic slowdown, war in Iraq, bad weather in North America and part of Europe and the flu-like Sars virus in the Far East.

The company, which also brews Murphys stout and Amstel lager, said it had also suffered from the effects of the strong euro and higher pension costs.

Giving investors some hope of a recovery, Heineken added that a substantial part of its beer sales were realised in the summer months of July and August.

Therefore, the company said that it could only give a more specific forecast about profit expectations for the full year with the publication of its half-year results on September 10.

Today’s statement sent Heineken shares falling by €3.11 to €30.95 euros a share on the Amsterdam market.

Drink-related shares listed in London also fell.

SABmiller, which owns the Miller beer brands, dipped 16.75p to 411.75p while Kronenbourg owner Scottish & Newcastle fell 15.5p to 383.5p.