<\/p>\n
Heineken NV is considering options for its South African wine business just three years after acquiring it, with all brands such as Nederburg and JC Le Roux, under review.<\/p>\n
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Heineken names Rafael Oliveira as CEO to lead turnaround
\nWhy these are sobering times for alcohol companies<\/p>\n
In an indicator of the pace of change at the Dutch brewer, which recently hired outsider chief executive officer Rafael Oliveira to lead a revamp, Heineken said it\u2019s looking at the relevance of wine in its South African portfolio.<\/p>\n
\u201cWe are not making rash decisions on what to do, but we do have it under strategic review,\u201d chief financial officer Harold van den Broek told analysts on a call Wednesday.<\/p>\n
He added that how the company will compete in certain wine segments \u201cis an active discussion with our South Africa business\u201d.<\/p>\n
Van den Broek did not specify what options are under consideration or whether they include a sale.<\/p>\n
Wine sales under pressure<\/p>\n
Beer and ready-to-drink volumes in South Africa grew by double digits in the third quarter, while wine remained under pressure, the company said Wednesday.<\/p>\n
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\u201cWe are really working very hard to bring volumes back into our business in South Africa,\u201d Van den Broek told analysts.<\/p>\n
The Distell deal<\/p>\n
Heineken acquired the wine brands as part of its \u20ac2.2 billion ($2.4 billion) purchase of South African wine and spirits maker Distell Group Holdings Ltd.<\/p>\n
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Heineken\u2019s volumes grow on strength in Asia, Africa
\nHeineken cuts up to 6 000 jobs amid slump in beer sales<\/p>\n
The transaction, agreed in 2021 and completed in 2023, combined Distell and Namibia Breweries Ltd with Heineken\u2019s existing South African operations to create Heineken Beverages.<\/p>\n
More than 5 400 employees from Distell and Namibia Breweries joined Heineken when the transaction was completed, according to the company.<\/p>\n
The deal was intended to give Heineken a broader drinks portfolio in the region and help it compete with rivals including Anheuser-Busch InBev SA and British spirits giant Diageo Plc.<\/p>\n
Instead, the enlarged business struggled with a complex integration and market-share losses.<\/p>\n
Heineken took a \u20ac491 million impairment on the business in 2023, less than a year after completing the transaction. Then-CEO Dolf van den Brink later acknowledged that the brewer had \u201cdropped the ball on a couple of commercial elements\u201d.<\/p>\n
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New CEO seeks growth<\/p>\n
On Wednesday, Heineken also reported that group volumes grew more than expected in the third quarter, boosted by strong demand for beer in Asia and a rebound in the Americas. Shares of Heineken rose as much as 2.2% on a more positive update.<\/p>\n
The company has underperformed rivals Carlsberg A\/S and AB InBev in recovering from a slump in beer demand after the pandemic.<\/p>\n
Heineken \u201chas strong foundations but we are not translating them into consistent growth and winning with consumers and customers as often as we should,\u201d Oliveira said in the results statement.<\/p>\n
He called for sharper execution, greater pace and accountability and said he would give more detail on his plans for the company when it reports full-year results.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Heineken #reviews #wine #business #years #deal<\/p>\n","protected":false},"excerpt":{"rendered":"
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