Heineken cites ‘higher marketing investment’ for sales boost
Beer brewer Heineken has said its move to invest more in marketing efforts has boosted sales growth in Western Europe.
Heineken reported revenue growth of 1.8 per cent in the region during the three months to 31 March, attributing market gains in the Netherlands, France, Spain, Ireland and Portugal to “higher marketing investments to drive brand development, innovation and improved outlet execution”.
It blamed lower volume in the UK on the timing of Easter and unfavourable weather conditions early in the quarter.
Jean-François van Boxmeer, chairman of the executive board and CEO, commented: "We are encouraged by a positive start to the year with continued improved top-line growth momentum in Africa Middle East and the Americas, strengthened commercial execution in Europe and the Heineken brand rebounding across most regions.
“This is offsetting continued challenging beer market conditions in Russia and softer consumer spending in Vietnam. Whilst economic conditions remain mixed, we will continue to invest in our portfolio of brands, drive further cost savings and fully leverage the benefits of our balanced global footprint."
Heineken, which also brews Strongbow, Amstel and Sol, attributed an 8 per cent growth of its namesake beer to the effective activation of the global 'Open Your World' campaign.