daniel chigunwe
Heineken, the world’s second-largest brewer, has reported declining beer sales in Nigeria and South Africa in its third-quarter report, blaming high inflation and currency devaluation in these markets.
The company’s global beer volumes fell by 4,2 percent in the July-September period, with declines in all regions except the Americas. However, Heineken managed to boost its net revenue before one-time items by 4,5 percent, thanks to higher prices.
According to Nairametrics, Heineken’s net revenue in Nigeria grew by a low single digit, driven by pricing to partially mitigate significant inflation and currency devaluation. However, total volume declined in the twenties, behind the market.
“Consumers’ purchasing power continued to be under severe pressure due to inflation and the impact of structural economic reforms, affecting our premium portfolio disproportionately,” Heineken said in a statement.
In South Africa, Heineken’s beer volumes fell by double digits as the country continues to grapple with a severe cost-of-living crisis. The brewer reported that the decline in sales in Africa weighed on their overall regional results, as beer volume in Africa, the Middle East, and Eastern Europe fell in the third quarter.
Despite the challenges, Heineken reaffirmed its previous projection for 2023, expecting operating profit growth to range from zero to a mid-single-digit percentage increase.
African Beer Market Faces Headwinds The African beer market faces several headwinds, including high inflation, currency devaluation, and rising energy costs. – Business Insider Africa
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