Weak pub market hits Heineken UK beer volumes

By Hamish Champ

- Last updated on GMT

Related tags: Heineken uk, Uk beer volumes, Alcoholic beverage

Heineken UK said bad weather, the worsening employment situation and what it called a "weak on-trade" were factors behind its lower UK beer volumes...

Heineken UK said bad weather, the worsening employment situation and what it called a "weak on-trade" were factors behind its lower UK beer volumes in the first six months of this year.

Meanwhile the brewer's share of the UK off-trade market was hit by a decision not to slash prices as part of a series of spring and summer promotional exercises being run by supermarkets.

Stefan Orlowski, Heineken UK's managing director, said: "This has resulted in some loss of market share in the sector, but this is wholly consistent with our desire to achieve better value for our brands over discounted volume."

Despite this, Heineken said its UK operation had delivered "strong earnings growth, driven by better pricing and significant cost reductions", the latter offset by investment in its brands. Heineken did not specify an earnings growth figure, although it is understood to be in the high single digit range.

Orlowski said Heineken UK's on-trade market share "remains firm for both beer and cider." The brewer's share of the beer market was 28.4 per cent, half a percentage point up on the same period last year, according to a spokesman.

On the cost-cutting front, it is understood that Heineken has saved several million pounds by closing its Reading and Dunston breweries, with production now concentrated in Hereford (cider), Manchester (lagers) and Tadcaster (John Smiths and Newcastle Brown).

In June Heineken sold Waverley TBS, its drinks wholesaler, to a private investment firm.

Related topics: Beer

Property of the week

The Hazeldene Hotel

- Tenancy

The Hazeldene Hotel is opposite the Famous Blacksmiths Shop in Gretna Green. With 11 letting rooms, it is in a prime location to offer fantastic...

Follow us

Pub Trade Guides

View more