Heineken slashes 600 after S&N carve-up as beer group's earnings surge £1.83bn

Published on Tuesday 23 February 2010 20:41

HEINEKEN, the Dutch brewer that now owns Scottish & Newcastle, revealed yesterday that it axed 600 jobs last year, including 200 in Scotland, in a fierce cost-cutting drive.

The efficiencies helped its earnings surge 35 per cent but the company forecast a tough beer trading environment in 2010.

The group, which carved up S&N with Danish rival Carlsberg, said: "The global economic environment will continue to lead to lower beer consumption and down-trading in a number of regions in 2010."

It came as Carlsberg also talked of a "challenging" 2010, with its key Russian market seen falling by a low double-digit percentage after a tripling in tax since last month under the government's drinking crackdown.

Heineken's UK job losses included brewery workers, sales force and back-office staff. Later this year the Berkshire brewery and Gateshead's Dunston brewery will close.

The group, which refused to disclose total UK profits, outperformed a 4.2 per cent fall in the total UK beer market in 2009 with its beer volumes only slightly down.

The performance was led by 2.6 per cent volume growth for Foster's lager after a relaunch.

Its cider market grew 8 per cent, fuelled by a strong performance in the off-trade and Heineken's premium Bulmers brand.

Group earnings rose 14 per cent to 2.09bn (1.83bn) from 1.93bn.

Meanwhile, operating profits at Carlsberg rose to 1.64 billion crowns (193m) in the fourth quarter of 2009 from 1.39 billion crowns a year earlier.