Heineken make plans for smoking ban

HEINEKEN Ireland’s continued growth of market share will help it offset the forecasted drop-off in beer sales following the imposition of a ban in smoking in pubs from January, the company said yesterday.

The world’s third-largest brewer said first-half profit globally rose to €334 million from €330m a year earlier. Sales rose 6% to €4.61 billion, as the inclusion of new purchases such as Al Ahram Beverages Co. in Egypt added 5% to revenue growth. The company said the gain in revenue was held back by a 4% drop in sales as a result of the euro’s advance.

Heineken, like Guinness owners Diageo, do not give a break-out of their Irish figures, but like their rivals claim increased market share. Both companies are worried a ban on smoking in pubs will hit sales. However, Heineken Ireland managing director Nico Vervelde says by continuing growth of market share they can overcome any negative impact in sales.

Mr Vervelde said Heineken was now putting clear water between it and main lager rival Budweiser. He said: “The gap is getting bigger. We have 30% of the overall larger market and Budweiser is less than this.”

Both Diageo and Heineken agree overall beer sales have fallen 5% but Heineken says they have grown volume sales by 0.2% in the first six months of the year.

“I am glad to say Heineken Ireland has increased its share in the beer market for the first six months of 2003. While the beer market is experiencing a decline, Heineken Ireland sales were above last year, thereby strongly outperforming this highly competitive market. We continue to invest in all our brands to ensure a positive market share development through to year end.”

Figures for sales of the company’s flagship stout brand Murphy’s were not available but yesterday the company said: “Murphy’s Irish Stout continues to maintain share in its heartland, supported by a new advertising campaign 'Smooth like Murphys’ and the recent Murphy’s Cat Laughs comedy festival.”

Cork-based Heineken Ireland employs 431 people directly and 200 in its joint venture wholesale division.

Globally Heineken is trying to revive demand by hiring actress Jennifer Aniston for commercials and promoting beers like tequila-flavoured Desperados and Amstel Bright, brewed in Curacao with sea water. Like Belgium’s Interbrew SA, which said 2003 profit will probably decline, Heineken is also expanding in Eastern Europe, where beer is the drink of choice for many consumers.