Heineken Expects Lower Beer Sales in 2025 Amid Weak Demand

Post by : Saif Nasser

Dutch beer maker Heineken has warned that its beer sales will fall in 2025 as global demand for its products weakens. The company lowered its volume forecast again, after already facing challenges in previous quarters.

Heineken is the world’s second-largest brewer. Like other large beer companies, it has struggled for years to grow the amount of beer it sells. While higher prices have helped maintain profits, investors are increasingly watching the actual number of bottles sold.

The company said annual beer volumes would "decline modestly" next year. Its operating profit is also expected to be at the lower end of its previously forecast range of 4% to 8% growth.

CEO Dolf van den Brink said economic uncertainty had grown stronger in the third quarter. He added, “We expect demand to recover when conditions normalise.”

Analysts had already predicted that profits would rise slightly by about 3.9%, while volumes would fall around 1.8%. Laurence Whyatt, an analyst at Barclays, said Heineken’s update matched expectations. “All the negative news was expected. And in fact, it was expected to be worse,” he said. Following the announcement, Heineken shares rose almost 1% in early trade.

Brewers face long-term challenges in some markets as people drink less beer because of health concerns or new alternatives like low-calorie drinks. Weight-loss products and lifestyle changes have also affected beer demand in some regions.

Heineken said its main problems in the third quarter were weak sales in Europe and Latin America, especially in Brazil, where shipments fell sharply. The company also faced difficulty regaining shelf space in Europe after price disputes with retailers.

Despite these issues, Heineken reported some positive results. The company gained market share in Brazil and Mexico, and sales improved in previously difficult markets such as Vietnam.

The company’s third-quarter net revenue fell slightly by 0.3%, just above analyst expectations of a 0.8% drop. Beer volumes decreased by 4.3%, which matched forecasts.

Heineken and other brewers are now focused on managing short-term challenges while hoping that global economic conditions improve, which could help beer sales recover in the coming year.