Date Posted

Heineken trumpets 2030 plan but investors want results

Facebook
X
LinkedIn
WhatsApp
Heineken has pledged to bolster its revenue and cut costs, but investors in the world’s number two beer maker say tougher steps, including plant closures, may be needed to get its business up to speed.

Chief Executive Officer Dolf van den Brink, at the helm of the $44.91 billion brewer since 2020, has two key challenges, according to investors and analysts: deliver greater efficiency while reviving flagging volume growth.

 

While all brewers have been struggling to sell more beer, the Dutch maker of Amstel and Tiger beers has frustrated some investors with volatile performance and for lagging behind larger rival Anheuser-Busch InBev in efficiency, with higher fixed costs and a larger brewery footprint in some regions.

 

“Investors want this company to do well but need to start getting some runs on the board,” said Ryann Dean, Analyst at Heineken Investor Aylett & Co. Fund Managers.

 

Dean said Heineken’s updated strategy, laid out at an investor event in October, was welcome, but the brewer needed to show it could deliver.

 

–Reuters–