Heineken reported weakening beer volumes and lower-than-expected sales as drinkers in Asia, Africa, the Middle East and Europe pulled back on premium beverage purchases.

The Amsterdam-based brewer said beer volumes fell by 4.2 per cent as shipments to key markets such as Vietnam, Nigeria and Europe declined. A revenue increase of 4.5 per cent on an organic basis in the third quarter missed the 5.3 per cent consensus estimate from analysts. The company previously said poor summer weather in Europe would hurt demand. 

Beer makers are facing waning demand for high-margin suds as consumers cut back after brewers hoisted prices to offset surging input costs.

Heineken kept its forecast of 0 per cent to 5 per cent annual organic adjusted operating profit growth. 

The company reduced its growth target in July, blaming weakening demand – particularly in the key market of Vietnam – after unprecedented price hikes.

Heineken chief executive Dolf van den Brink said on Tuesday (Oct 24) that while inflation-led price increases are slowing, Heineken sees “a slowdown of consumer demand in various markets facing challenging macro-economic conditions.” 

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Heineken completed an agreement in August to sell its assets in Russia for 1 euro, in a deal it said would result in a 300 million euro (S$434.6 million) loss. BLOOMBERG