Heineken figures demonstrate brand strength

Heineken brewing group reported beer volumes down 4.2% in Q3 but revenue growth up 4.5%, a performance which speaks to brand strength and pricing power.

Reporting the figures, CFO Harold van den Broek told an earnings call that the results were “driven by pricing actions taken earlier in the year to offset inflation”. 

Why Heineken pricing matters

Heineken was an early mover when it came to increasing prices and has reaped the benefit as many markets are now catching up. But it was only able to successfully do that because of the strength of its premium brands in particular.

Takeaways 

• Volume trends are improving across about half of Heineken’s markets, with strong performances in Mexico, Brazil, Ethiopia and India.
• Overall volume decline in Q3 was slower than Q2 (at -4.2% vs -7.6%); half of that decline was attributed to Vietnam and Nigeria. 
• Heineken says it is holding or gaining market share in just over half its markets on a year-to-date basis, with its premium portfolio outperforming the majority of markets. 
• The Heineken brand saw double-digit growth in 28 markets, with overall volume growth of 2.3%; Heineken Silver was up 40% and 0.0 up 3.5%.

Sourced from Heineken, Seeking Alpha