Heineken CEO steps down as industry faces demand challenge, shares fall

(Sharecast News) - Heineken chief executive Dolf van den Brink is to step down after almost six years in the job amid lower sales for the industry as a whole as brewers face declining demand for their products.

Van den Brink will stay on as an adviser to Heineken for eight months after his exit at the end of May. Shares in the brewer - which also makes Amstel, Birra Moretti and Cruzcampo, were down more than 4% on the news.

Brewers have faced an increasingly tough market as consumers moderate consumption on the back of health fears and soaring prices in pubs and clubs amid the cost-of-living crisis.

"The past years have been marked by significant change as Heineken progressed through its transformation and has now reached a stage where a transition in leadership will best serve the company in further executing its long-term ambitions," Van den Brink said on Monday.

AJ Bell investment director Russ Mould said Van den Brink's departure was not a shock given Heineken had underperformed counterparts like AB InBev and Carlsberg in share price terms.

"Part of any future strategy may involve seeking to diversify into new areas, selling underperforming brands and leaning more into zero and low alcohol products as well as the classic playbook of taking out costs," he said.

"Many of these avenues would represent a continuation of Heineken's existing 'Evergreen' strategy but it will be interesting to see if the brewer goes outside of the company for this appointment given van den Brink was an internal promotion.

"An outsider might have more scope and a fresh enough perspective to push through more radical changes in an attempt to restore Heineken's fortunes."

Reporting by Frank Prenesti for Sharecast.com