S&N 'warhorse' helps to drive Heineken

Published on Wednesday 27 August 2008 21:12

HEINEKEN boss Jean-Francois van Boxmeer yesterday claimed the "commercial war machine" of Scottish & Newcastle's former brewing business would help drive further volume growth in Britain.

It came as the Dutch brewing giant posted a 1.5 per cent dip in first-half net profits to 540 million (431.8m), with S&N's former business chipping in 28m since Heineken took control at the beginning of May.

Van Boxmeer, whose group acquired S&N's business in Britain, Portugal, Finland, Belgium and the US as part of the 7.8 billion takeover and carve-up of S&N by Heineken and Carlsberg this year, said he remained bullish about the British market despite the consumer downturn.

He said Heineken's flagship premium brand Imported Heineken had increased volumes in the UK by 39 per cent in the first six months of the year.

Van Boxmeer added: "It has sustained its performance and will continue its growth with the commercial warhorse S&N's business was. We are very bullish on Britain.

"The downturn we face (generally] is cyclical. We don't think we will have such a bad summer every year. We are taking a long-term view on the British market. The British love beer and we have inherited some great brands (from S&N]."

Underlying earnings before interest and tax at the group, the world's third-biggest brewer, came in at 925m, up 7.4 per cent. Sales totalled 6.4bn.

Costs rose by 15 per cent in the first half as Heineken paid more for grain, glass, aluminium and energy and it said it expected them to rise by 8 per cent next year.

Volumes rose 5.4 per cent on an underlying basis, a rate the Dutch company said it expected to see again in the second half.

The key regions behind the growth were Africa, central and eastern Europe and Asia Pacific.

However, Heineken said volume in western Europe and the US was lower as markets were affected by weakening economies.