Heineken is benefiting from the rise in grain prices: now that thirsty consumers can finally go out again, they are accepting the ongoing price increases.
One-third more beer in Europe
Beer is produced from grain, and grain often comes from Russia or Ukraine. It is therefore logical that beer prices are on the rise. Even Heineken is forced to issue a new warning, despite a strong first quarter. In the previous quarter, sales rose by more than a third compared to the previous year, to just under 7 billion euros.
The growth was largely due to price increases, as Heineken only sold 5.2 % more beer (just 2.8 % more compared to 2019). In Europe, however, sales were much higher (+ 15 %): in the Dutch domestic market, the brewery group sold 30 % more beer, and on the British market even 40 % more. In France and Italy, volumes rose by 20 %.
In Asia, people are also going out to the pub more often, while consumers around the world are enjoying more premium beers. This resulted in a 3.81 % increase in profit to 417 million euros. However, the result does not yet include the costs of exiting the Russian market, which Heineken will only be reporting on at the end of the first half of the year.