Heineken CEO stepping down amid falling beer sales

Heineken NV Chief Executive Officer Dolf van den Brink is stepping down months after the brewer issued a profit warning amid a slump in beer sales. Picture: TheHeinekenCompany.com

Heineken chief executive Dolf van den Brink is stepping down months after the brewer issued a profit warning amid a slump in beer sales.

Mr Van den Brink will stand down on May 31 after six years at the helm of Heineken, and more than 28 years at the Dutch company in total, according to a statement Monday. The brewer will start a search for his successor, and Van den Brink will stay on to advise Heineken until next year, it said.

Heineken warned in October that annual profit would be lower than expected due to weaker growth in Europe and the Americas, a problem that has affected the global brewing industry for some time as consumer drinking trends shift.

Heineken owns both Murphys and Beamish stout brands, and Murphys has been a star performer for the brewery,  beating the trend of falling sales.  

Murphy’s is continuing to make huge inroads in the UK, with year-on-year value sales growth of 666% and a volume increase of 607%.

Nevertheless, the brewer said it expected adjusted operating profit growth this fiscal year to come in at the lower end of its previously forecast range of 4% to 8%. Heineken also said it expected volumes to fall modestly too, despite previously saying they would remain stable.

Heineken, which alongside its eponymous brand also makes Tecate and Amstel, said at a capital markets day in October it planned to focus its growth efforts on 17 key markets and cut investment to some of its brands.

- Bloomberg