Heineken rises 6% on plans to cut 6,000 jobs as beer demand falls

HEINY HINKF

THE GIST

Heineken is cutting up to 6,000 jobs, about 7% of its global workforce, as beer volumes slide and growth gets harder to find.

Profits are still rising, but the message is clear. In a world of cautious consumers, health shifts, and weight-loss drugs, even Big Beer has to slim down.

WHAT HAPPENED

Heineken reported that beer volumes fell 1.2% in 2025, with sharper declines in Europe and the Americas. In Europe, volumes dropped around 3% to 4%, while the Americas saw a similar mid single-digit contraction in key markets. The consumer backdrop remains soft, with affordability pressures and patchy demand.

Yet revenue rose 1.6% to €28.9 billion (or about $34 billion), driven by price and mix. Net revenue per hectoliter increased 3.8%, reflecting disciplined pricing and premiumization. Operating profit grew 4.4%, with a 41 basis point margin expansion, and diluted earnings per share reached €4.78. The company proposed a dividend of €1.90 per share, up 2%.

Alongside the results, Heineken unveiled a plan to remove 5,000 to 6,000 roles over the next two years. The cuts will span breweries, back-office functions, and regional structures. The group is moving to multi-market operating companies in parts of Europe, expanding shared services and accelerating digitization. Management expects annual growth savings of €400 million to €500 million from the programme.

For 2026, Heineken guided to organic operating profit growth of 2% to 6%, down from the 4% to 8% range it previously signalled for 2025. The tone is cautious. Management said it does not expect a material improvement in the consumer environment in the near term.

WHY IT MATTERS

Heineken is a case study in the new reality for consumer staples. The category is not collapsing, but it is no longer delivering easy volume growth. After years of inflation and price increases, drinkers are more selective. Younger consumers are more health conscious. Weight loss drugs are shifting calorie awareness. And in mature markets, beer is competing with everything from cocktails to canned water.

Heineken’s answer is twofold. First, protect margins through price, mix and cost discipline. Second, reposition the portfolio towards premium and low or no alcohol.

The financials show that the first part is working, at least for now. A 1.2% volume decline still translated into revenue and profit growth. That is pricing power and premiumization at work.

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Zero alcohol is the long-term bet. Heineken 0.0 remains the world’s largest alcohol free beer brand. In some European markets, nonalcoholic beer already accounts for close to 10% of category volume. Globally it is still low single digits. Management clearly believes that can double over time. The launch of new zero alcohol variants and line extensions is an attempt to capture new occasions, not just replace lost alcoholic beer.

The job cuts show the second half of the strategy. Growth will be funded by productivity. Heineken has already delivered more than €3.5 billion in cost savings over recent years. Now it is stepping up again. Multi market operating companies will pool back office functions across clusters such as Benelux or Central Europe. Supply chains are being rationalised. Digital tools, including AI driven marketing systems, are being scaled.

The symbolism matters. When a brewer with 87,000 employees says it can remove up to 6,000 roles and still invest more in brands, it is signalling a structural shift. The decentralised model that once defined Heineken is being tightened. Scale is being leveraged more aggressively. The head office is shrinking.

This is also happening at a sensitive moment. Chief executive Dolf van den Brink is stepping down after six years, just as the company moves into the execution phase of its Evergreen 2030 strategy. Investors often worry about leadership transitions during restructurings. The board has stressed continuity, but the next CEO will inherit both a cost programme and a fragile volume backdrop.

The market’s initial reaction, with shares rising on the day, suggests investors welcome the decisive cost action and conservative guidance. In staples, beating lowered expectations is often enough.

WHAT’S NEXT

The next year will test whether Heineken can stabilize volumes while continuing to expand margins. The 2% to 6% profit growth range gives management room to absorb shocks, but also signals limited top line optimism.

Much will hinge on Europe and the Americas. If consumer confidence improves and promotional intensity stays rational, volumes could flatten. If price-sensitive shoppers continue to trade down or drink less, the pressure intensifies.

At the same time, investors will watch execution on the 6,000 job cuts. Savings need to land without damaging commercial momentum. The integration of the FIFCO acquisition in Central America adds another layer of complexity.

Beer is not dying. But it is no longer effortless. Heineken is responding the only way a global brewer can. Cut costs, protect premium, push zero alcohol, and hope the party picks up again.

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