Heineken N.V.’s U.S. volume in the first quarter declined “low single digit” with growth in the Heineken brand offset by lower Tecate and Dos Equis volume.
For the Americas region as a whole, organic beer volume declined 0.7%. Heineken blamed Brazil – and to a lesser extent the U.S. and Panama – for the decline. The company noted that Brazil volume declined double digit reflecting continued macroeconomic weakness and competition in the mainstream and economy segment. The premium brand portfolio outperformed with continued double digit Heineken growth. Amstel also delivered strong growth.
But Mexico showed volume up mid-single-digits, with Tecate, Tecate Light and Heineken all performing strongly.
Globally, the company posted 0.6% organic growth. The Heineken brand itself was up 2.5% globally.
Both Asia Pacific and Europe showed growth. Asia Pacific’s organic growth was up 5.4%, while Europe inched ahead by 0.5% in the first quarter.
Heineken’s stock was up 1.2% in early European trading. Analyst Mark D. Swartzberg of Nicolaus Stifel & Co. told clients he continues “to see double-digit growth in the Heineken lager brand in Brazil as evidence of a more robust premium segment than may be fully appreciated and believe the announced agreement to purchase Brasil Kirin will ease industry promotional intensity, a positive, in our opinion, for both Heineken and the market leader Anheuser-Busch InBev.”