Heineken NV, the world’s second-largest brewer, has unveiled an ambitious five-year strategy aimed at driving sustainable growth with fewer resources, as it doubles down on its strongest brands, priority markets and digital transformation.
Reuters reported that under the new plan, Heineken targets mid-single-digit annual organic net revenue growth through 2030, backed by operational streamlining, €500 million in annual cost savings and expanded use of artificial intelligence (AI) to boost efficiency.
“Our performance is not where we want it to be. We’ve had decent years and very challenging years. This is not satisfactory as we are really hungry for more and better,” said CEO Dolf van den Brink.
Van den Brink shared that the brewer will focus investment on 17 key markets including Mexico, Malaysia, Spain and the UK, and its five flagship global brands: Heineken, Tiger, Amstel, Desperados and Birra Moretti. The company will also nurture 25 strong local labels, while considering divestment from underperforming markets.
“We expect operating profit to grow faster than revenue, with earnings per share keeping pace or exceeding that growth.
“We also aim for over 90% free cash flow conversion, underscoring its focus on financial discipline,” van den Brink said.
To adapt to shifting consumer habits, van den Brink highlighted that Heineken also plans to expand its low- and no-alcohol product range, addressing rising health consciousness and evolving drinking trends.
Despite the announcement, Heineken shares slipped nearly 1%, as investors weighed the brewer’s cautious outlook after weaker third quarter sales in Brazil and Europe.
