Dutch brewer sees mid-single-digit growth in India revenue despite rainfall-hit demand; premium brands drive gains
Heineken, the Dutch brewing major and majority owner of United Breweries or UBL, reported a mid-single-digit decline in beer volumes in India during the September quarter, as unusually heavy monsoon rainfall dampened demand across key states.
Despite the volume setback, the brewer said its India business recorded mid-single-digit growth in organic net revenue, supported by price increases in select markets and a favourable product mix.
“In India, organic net revenue (beia) grew by a mid-single-digit, while beer volume fell by a mid-single-digit, impacted by an unusually strong monsoon season. We outperformed the market. Price-mix expanded by a high single digit, supported by pricing in key states and portfolio mix,” the company said in its earnings statement.
The premium beer segment, typically priced above Rs 125 per pint, rose in the low teens, driven by Kingfisher Ultra Max and the launch of Amstel Grande during the quarter.
India experienced heavier-than-usual rainfall in July and August, causing temporary disruptions for several consumer goods companies. Seasonal fluctuations and supply chain interruptions also weighed on sales momentum.
In the Asia-Pacific region, which includes India, Heineken’s organic net revenue increased 5.6 per cent, even as consolidated volumes slipped 0.8 per cent. The company’s global revenue for the September quarter stood at 8.7 billion euros, down 4 per cent year-on-year.
Worldwide, Heineken’s beer volumes declined 4.3 per cent organically, with lower sales in Europe and the Americas outweighing growth in Africa and the Middle East.
“We are gaining or holding volume market share in a substantial majority of our markets, with notable gains in Mexico, Brazil, India, Vietnam, Nigeria, and Ethiopia,” the company added.
Globally, premium beer volumes fell 2.2 per cent, as growth in India, Vietnam, Nigeria, and South Africa was offset by softer sales in Brazil and the United States. The Amstel brand continued to perform strongly in markets such as South Africa, India, Romania, Tunisia, and Ecuador.
Heineken holds a 61.5 per cent stake in United Breweries, India’s largest brewer, which markets brands such as Kingfisher, Kalyani Black Label, Bullet, Maharaja Premium Indian Pilsner, and Taj Mahal Premium. It also distributes international labels including Heineken, Amstel Bier, and Sol in the Indian market.
