Heineken Ireland sales rise by 3%

Heineken Ireland has posted a 3 per cent increase in sales in the half-year to June 30th despite a marginal fall in the overall consumption of beer in the State during the period. The total beer market contracted by 0.1 per cent in the six months.

Significantly stronger sales of Heineken's packaged beer in off- licences offset weaker trade in pubs for the group.

Mr Padraic Liston, managing director of Heineken Ireland, said general trends among drinkers in Ireland augured well for Heineken's outlook. He said the stout sector declined by 4.6 per cent in the first six months of the year while larger, which accounts for the bulk of Heineken's revenues, increased by 3.6 per cent.

"There has been a marketing issue with stout in recent years and, if you look at consumption globally, it has declined, so we would see that as an opportunity for us to grow our market share," he said.

Mr Liston said a 20 per cent jump in off-licence sales of both Heineken and Coors Light in the half resulted from a marketing drive by the company as well as "lifestyle changes" among drinkers. Growing awareness over the drink-driving issue meant many Irish drinkers now preferred to drink at home more often than before, he said.

Heineken also performed strongly in the draught market. The company says it has a 37 per cent share of that market.

As well as Heineken and Coors Light, the company also owns the Stella Artois and Murphy's brands in the Republic. Mr Liston said Murphy's continued to be the State's only growing stout brand.

Operating profit for the global Heineken Group was up 13 per cent in the six months to June to €581 million from €513 million last year. Group volume was 12 per cent higher than last year. Organic volume growth accounted for 2 per cent of that increase with 10 per cent coming by way of contributions from newly acquired firms.

The company said growth in operating profit in the remainder of the year would be stronger than in the first half. "Improvements in sales mix and selling prices will continue in the second half of the year," it said.

The company later launched a $287 million (€294 million) cash bid for Al Ahram Beverages Co, valuing the Egyptian brewer at $14 per share. The offer - to be funded from existing resources - is conditional upon Heineken acquiring acceptances for at least 76 per cent of the shares, and the acquisition would immediately contribute to net profit.