Thirst for beer cheers Heineken

HEINEKEN, Europe's largest brewer, yesterday posted a 22 per cent rise in sales to €3.6 billion (£3.2bn) in the first quarter as demand increased in the UK, France and the Netherlands.

The Dutch company said that it also continued to enjoy double-digit sales volume growth in Africa and the Middle East.

But Heineken - which brews beers including Deuchars IPA, McEwan's Export and Newcastle Brown Ale after breaking up Scottish & Newcastle with Carlsberg in 2008 - warned that higher marketing spend this year would drain some of its full-year profits.

The family controlled company, which only releases partial financial information in its quarterly updates, said like-for-like sales were up 3.6 per cent as it sold 6.7 per cent more beer by volume. But prices fell, mainly in Russia, which accounted for 40 per cent of the total volume growth. Prices were also lower at its wholesale business.

By region, the company's performance closely reflected macro-economic developments, with volumes down in Spain, Ireland, Portugal and Greece, but up more than 10 per cent in Asia.