Heineken beer sales take a steep plunge

Dutch brewer Heineken reported on Wednesday that first-quarter net profit plunged by 68.5%, impacted by the coronavirus pandemic.

The company said net profit fell to €94m ($102m) from €299m in the first quarter of 2019, as the volume of sales trickled off in March.

Heineken chief executive, Jean-François van Boxmeer, said measures to contain the crisis were “having a significant impact” on the company’s business.

“We have taken necessary measures to reduce our costs, secure additional financing and adapt to the fast changes,” a statement said.

But the group pledged that “until the end of 2020, it will not carry out structural layoffs, as a consequence of Covid-19”.

In addition, “the Executive Board and Executive Team have also collectively agreed to reduce their base salary by 20% between May and December 2020”.

Danish rival Carlsberg said earlier this month it was expanding cost-cutting as consumers in Europe opted more for less pricy multi-packs of mainstream lagers than craft or speciality beers.

Read more via Reuters