
Heineken’s price hike deters beer lovers
Heineken’s annual report revealed a decline in consumer response due to raised beer prices in response to soaring inflation, leading to a 14.1% drop in profit to DKK 17.2 billion in 2023 and a 4.7% decrease in beer volume sold. CEO Dolf van den Brink acknowledged that 2023 was challenging after a strong previous year, with significant energy cost inflation impacting their momentum. Particularly in Vietnam and Nigeria, economic challenges led to reduced beer volumes. Additionally, Heineken’s exit from Russia in early 2023, following the country’s invasion of Ukraine, negatively impacted results. Despite higher prices increasing total revenue by 5.7% to DKK 226 billion, it wasn’t enough to counteract buyer reluctance. Heineken anticipates continued economic and geopolitical challenges in 2024 but remains focused on revenue growth and long-term value through brand investment and innovation.