Fizzing out: Heineken sales falling in Europe

SEVERE CONSTRAINTS on credit and pressure on consumer’s disposable spend will make 2011 another tough year for the drinks industry…

SEVERE CONSTRAINTS on credit and pressure on consumer’s disposable spend will make 2011 another tough year for the drinks industry in Ireland, Heineken has said.

The company’s Irish operations had revenues of €402 million in 2010, according to results published yesterday, though no comparative figures for Heineken’s Irish operations for 2009 were released.

However, figures for Heineken’s overall operations show sales in Europe were under pressure last year, while it increased sales in emerging markets such as Latin America, Africa and Asia.

The company said Ireland’s per capita beer consumption continues to fall and is now at 9.19 litres of pure alcohol – a level seen last in the mid-1990s and a 20 per cent fall from its peak levels in 2001.

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Last week, Diageo said falling sales in Ireland has contributed to the 4 per cent decline in net sales of its beer brands in the final six months of last year. Weakness in the on-trade sector, particularly in rural areas, saw sales of Guinness decline, according to the drinks group.

Heineken Ireland, which includes operations North and South, said it increased its market share by 0.2 share points on 2009 levels and now holds 26.3 per cent of the Irish beer market.

Heineken also owns the Coors Light and Murphy’s brands.

The Northern Ireland marketplace continues to be a strategic development market for Heineken Ireland, the company said, with Heineken brand sales growing by 40 per cent in 2010.

Results for Heineken’s parent company showed global sales increased by 10 per cent to €16.1 billion in the year as the group saw sales increase in emerging markets in Latin America, Africa and Asia.

Suzanne Lynch

Suzanne Lynch

Suzanne Lynch, a former Irish Times journalist, was Washington correspondent and, before that, Europe correspondent