HEINEKEN SELLS LESS THAN EXPECTED IN ASIA

HEINEKEN SELLS LESS THAN EXPECTED IN ASIA

The good forecasts have not been fulfilled for the Dutch brewing giant Heineken who has confirmed that its beer sales have fallen by 5.1% compared to the same period last year. Specifically, the multinational brewer details that this decline in beer sales more pronounced than expected during the third quarter is due in part to the restrictions caused by the Covid-19 which has had a direct impact on the volume of sales in Vietnam, one of its three main markets, in more than half.

In particular, Asia-Pacific sales were down 37.4% as Covid-19 restrictions affected Cambodia, Indonesia, Malaysia and Vietnam. The world’s second-largest brewer said it sold 5.1% less beer on a comparable basis than a year earlier. Vietnam, consistently one of Asia’s fastest-growing economies, suffered a record contraction in the third quarter when an outbreak of the delta variant of the coronavirus led to a tight lockdown in Ho Chi Minh City’s commercial hub.

The city’s gridlock began to ease this October and, although bars remain closed, Heineken chief executive Dolf van den Brink says there are signs of recovery in the Asia-Pacific region.

European sales also disappointed, failing to achieve the expected rise. Heineken believes the weakness partly reflected poor summer weather in northern Europe, although it also faced logistical problems in Britain. Rivals Anheuser-Busch InBev and Carlsberg are due to provide updates on the third quarter tomorrow.