Heineken saw a decline in beer volumes, as retailer disputes across Europe dragged on sales and limited its ability to take advantage of the summer heatwave.

The Dutch brewer reported a 0.4 per cent fall in volumes during the second quarter as it faced disputes over price increases with regional buying groups in western Europe that lasted longer into the quarter than anticipated. Shares in Heineken declined 4.1 per cent in early trade in Amsterdam, the biggest intraday decline in more than three months.

The negotiations in France, the Netherlands and Spain that escalated in March are now resolved, Heineken said in a statement Monday. France saw a “strong recovery” in June as a result, it added.

Prices overall were up 1.2 per cent in the first half in Europe, “in that sense positive price mix. Which is what we were negotiating for,” chief executive of Heineken Dolf van den Brink said on a call. A key point of contention was being able to pass on cost and wage increases, he added, declining to comment further.

Heineken expects stable volumes this year as consumers cut back spending in its key markets Americas and Europe, compared with a previous outlook for growth. It now wants to save €500 million in 2025, more than previously announced, to offset the lower volumes.

Organic operating profit grew 7.4 per cent in the first half of the year, boosted by expansion in Vietnam, India and China. It maintained operating profit growth guidance of between 4 per cent and 8 per cent for the full year.

Heineken beer volumes fell 1.2 per cent in Americas in the first half as the industry grapples with a downturn in US spending including among Hispanic consumers.

The world’s biggest brewers have all come under pressure in the key market. Molson Coors and AB InBev have seen volumes weaken, while Constellation Brands, which sells the Modelo Especial and Corona brands in the US, said earlier this year beer sales were muted in states with large Hispanic populations.

Beer markets have declined at a pace Heineken has “rarely seen any time before,” said van den Brink.

In the wake of the EU’s trade agreement with the US, which will see the bloc face a 15 per cent tariff on most of its exports, van den Brink said in a TV interview with Bloomberg that the amount was largely in line with what the company had been expecting.

There would be some impact on profit of US operations, which will weigh more heavily in the second half of the year, he said.

Heineken is assessing whether to move manufacturing to the US as a result of the tariffs, he said, but pointed out that brewing was capital intensive, meaning a decision would be made only if it worked for the long term. “As such we really need consistency in regulation and tariffs to make a final call. We are looking at options.” – Bloomberg