Summer drought: Poor weather hits UK sales

The poor summer weather hit sales of beer and cider in the UK, despite the launch of premium versions of Foster’s and Bulmers, brewer Heineken said yesterday.

But the Dutch company, which acquired some of its UK brands through the 2008 takeover of Edinburgh-based Scottish & Newcastle, claimed that TV advertising campaigns and the launch of Foster’s Gold allowed it to grow its share of a UK beer market that declined 4.5 per cent in the three months to September. The beer market showed a bigger-than-normal contraction in the period as it came up against tough comparatives with last year, when sales were boosted by the football World Cup.

Globally, sales in Africa and eastern Europe helped Heineken to beat market expectations for its third quarter, while late summer sunshine brought western European drinkers back to the bar.

The world’s third-largest brewer grew revenue by 3 per cent on a like-for-like basis to €4.65 billion (£4bn). But higher marketing spend and rising input costs weighed on profit margins. Net profit was virtually unchanged from a year earlier at €525 million.

Heineken sold 5.8 per cent more beer in central and eastern Europe with a strong rebound in Russia and growth in Austria, Hungary and Romania.

African volumes were 6 per cent higher, led by growth in Nigeria, Rwanda and a joint venture in the Republic of Congo.

DOMINIC JEFF