Global crisis, smoking bans hamper beer consumption
The global economic downturn, bad weather and smoking bans caused global beer sales volumes to drop 6.3 per cent in the first three months of the year, giant Dutch brewer Heineken reported yesterday. But better selling prices largely compensated for...
The global economic downturn, bad weather and smoking bans caused global beer sales volumes to drop 6.3 per cent in the first three months of the year, giant Dutch brewer Heineken reported yesterday.
But better selling prices largely compensated for lost volumes, yielding a revenue decline of only one per cent, the company said in a first quarter trading update.
"In the first quarter of this year, revenue increased 24 per cent compared with the first quarter of 2008 owing to first-time consolidations and better pricing," it said. "This was partly offset by the financial impact of lower volume and unfavourable exchange rate fluctuations. Organically, revenue decreased one per cent."
Heineken said beer sales volumes declined across West European markets, while growing in Africa and the Middle East.
The company will focus in the coming year on initiatives to reduce debt and costs, and improve the performance of newly acquired companies.
In February, Heineken announced a 74 per cent drop last year net profit but said it remained optimistic as beer consumption was "relatively resilient" in hard economic times.
But better selling prices largely compensated for lost volumes, yielding a revenue decline of only one per cent, the company said in a first quarter trading update.
"In the first quarter of this year, revenue increased 24 per cent compared with the first quarter of 2008 owing to first-time consolidations and better pricing," it said. "This was partly offset by the financial impact of lower volume and unfavourable exchange rate fluctuations. Organically, revenue decreased one per cent."
Heineken said beer sales volumes declined across West European markets, while growing in Africa and the Middle East.
The company will focus in the coming year on initiatives to reduce debt and costs, and improve the performance of newly acquired companies.
In February, Heineken announced a 74 per cent drop last year net profit but said it remained optimistic as beer consumption was "relatively resilient" in hard economic times.