Heineken, the Dutch brewing giant, is singing a rather sobering tune lately. It seems there is a slowdown in consumer demand for their brews.
Maybe it’s because people are starting to think twice about spending their hard-earned cash on a cold one when the economy isn’t looking too rosy.
In the third quarter, they sold 63.2 million hectoliters of beer, which, believe it or not, is a 5.4 percent drop. That’s a lot of beer glasses half full!
But, here’s the twist – they jacked up their prices to combat the rising costs of making the stuff. So, while they might be selling less beer, they’re still making money.
Heineken’s CEO, Dolf van den Brink, said that although the inflation-led pricing frenzy is slowing down, there’s a noticeable slump in consumer demand.
It seems like people are tightening their belts – and not in the “I’ve had too many beers” way.
In the first nine months of the year, profits took a 12.5 percent hit, landing at 1.924 billion euros. And this isn’t just because they left the party in Russia, selling their operations at a whopping loss of 300 million euros. Ouch!
But don’t fret, Heineken is feeling optimistic. They’ve noticed that sales are picking up in some of their markets, which is like finding a forgotten beer in the back of the fridge – a pleasant surprise! They’re still planning to cut costs and shift their focus to growing markets.
Check Medialy for more updates
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