Heineken starts 2019 with growth spurt

Dutch brewer Heineken had a positive start to 2019, improving on its performance last year in both profits and beer volumes.

The brewer, which owns labels such as Newcastle Brown Ale, John Smith’s, Dos Equis, Murphy’s stout, and Amstel, reported an increase in beer volume in all regions, driven in particular by double-digit growth in Africa, Middle East, Eastern Europe and the Americas.

The beer brand’s volume grew grew by 8.3%. The main markets contributing with double digit growth included Brazil, South Africa, Russia, China, the UK, Nigeria, Mexico, Romania and Germany, according to a trading update from the brewer.

Profits for the first three months of the year were close to €299 million, an increase of close to €40 million compared wit the same period last year. Its outlook for the rest of the year (mid-single digit growth) has not changed.

Heineken’s volumes were especially promising in emerging markets.

Heineken has opened its first brewery in Mozambique last month, representing a US$100 million (€85 million) investment in the African beer market.

With a GDP growth of 3.5% in 2018, Heineken believes that Mozambique’s socio-economic fundamentals are “encouraging”, with beer consumption currently at 10.5 litres per capita.

The brewery is currently employing 200 people, 96% of which are Mozambican, with the brewery also expected to support further indirect jobs through its entire value chain.

Heineken has also made investments in international breweries over the past year. Last year the beer giant bought a minority stake in north London brewer Beavertown for £40 million, which the craft brewery said will go towards a new brewing facility expected to create 150 jobs.