E-Malt.com News article: 1283

Heineken would like to expand on the Russian market and would look at acquisitions but not at any price. "Russia is an interesting market ... perhaps it is better to launch a brand as a greenfield project there," said Heineken’s CEO, Ruys, since April 2002.

Heineken shocked financial markets last month when it said it expected its first half profits to be flat as sales stalled due to economic downturn, the war in Iraq and the SARS virus that notably struck Asia. "For six weeks we did not ship a single container to Hong Kong," Ruys said.

The Heineken sales warning was the more alarming for investors as bigger Belgian rival Interbrew maintained its own forecast of "meaningful" growth for 2003 while Scottish & Newcastle Plc said trade was perking up in its key markets, France and Russia. But Ruys stressed the June statement was a "volume warning" because the group knew it could not meet a volume growth target of seven percent on the U.S. market. There, as a premium beer served in bars and restaurants, it was harder hit by economic and weather effects than brands that have a higher proportion of home consumption. He declined to make any statements on the full-year outlook until in September with the first half results, when Heineken knows what some 60 percent of its annual sales look like.

Heineken is still firmly controlled by the founding family but run by a relative young group of non-family managers. The Heineken family, led by Charlene de Carvalho Heineken after the death of charismatic Freddy Heineken, controls the brewer. Ruys said he had the full support of the family and added their continued commitment brought stability to the firm. (Source: Reuters)


07 July, 2003