Heineken CEO Dolf van den Brink has announced he will step down later this year, following a slowdown in beer sales that has hurt the company’s profits.
Van den Brink, 52, will leave his role on May 31 after serving as CEO for six years and spending more than 28 years with the Dutch brewing giant. Heineken said on Monday that it has begun searching for his successor. Van den Brink will remain with the company as an adviser until next year to ensure a smooth transition.
The announcement comes a few months after Heineken warned that its annual profits would fall short of expectations due to weaker growth in Europe and the Americas. These challenges reflect a broader trend affecting the global beer industry, as consumer drinking habits continue to change.
Following the news, Heineken shares dropped as much as 3.2% in early trading in Amsterdam, marking their biggest intraday decline since July.
In October, the company said it now expects adjusted operating profit growth for the current financial year to be at the lower end of its earlier forecast range of 4% to 8%. It also revised its outlook on beer volumes, saying sales are likely to decline slightly after previously expecting them to remain stable.
Heineken, which owns brands such as Heineken, Amstel, and Tecate, said it plans to focus its growth efforts on 17 key markets and reduce investment in some of its brands.
Analysts at Jefferies said they do not expect any major change in the company’s strategy. They noted that most of the strategic groundwork has already been completed, making this an appropriate time for a leadership transition to focus on executing those plans.
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