As they pointed out when announcing the annual results, the goal is to “accelerate productivity on a large scale in order to achieve significant savings”. Heineken employs around 87,000 people globally, which means that almost seven percent of employees could lose their jobs, reports RTV Slovenia.
Financial director Harold van den Broek emphasized that part of the reduction in the number of employees will be a consequence of previously announced reorganizations in the supply network, company headquarters and regional business units. Already in October of last year, the brewery announced the abolition or redistribution of 400 jobs at the headquarters in Amsterdam.
Pivovarna Laško Union, which employed 397 people at the end of last year, is part of the Heineken group. “At the moment, there is no new information related to Slovenia, therefore our main focus remains unhindered operations and support for local teams,” the company said. They emphasized that they have been focusing on efficiency, productivity and sustainable growth for years, while employees and the long-term stability of the company remain a priority. This year, they plan to introduce new products and flavors, while the new local Union brewery should also open its doors this spring.
Global beer sales in the Heineken group fell by 2.4 percent last year, with the most pronounced decline in Europe and America, where sales decreased by 4.1 and 3.5 percent, respectively. Sales revenues amounted to EUR 34.4 billion, while net profit amounted to EUR 2.7 billion, which is 4.9 percent more than a year earlier.
Other producers, such as Carlsberg, are also announcing sales declines and layoffs, while breweries and spirits producers are cutting costs, selling assets and slowing production.
The situation on the German market is particularly worrying – beer sales fell the most since 1990, to 7.8 billion liters, which is six percent less than the year before and less than during the COVID-19 pandemic. The decline in sales in Germany has been going on since 1994, when it amounted to 11.5 billion liters. The reasons for the long-term decline include an aging population, a healthier lifestyle and less interest among young people in alcohol, but also high costs, a lack of investment capital and problems in the hospitality industry after the pandemic.
Due to falling demand, closures and takeovers are accelerating, especially among small and medium-sized breweries. Veltins Brewery CEO Volker Kuhl said the brewing industry is facing “a tipping point where breweries will increasingly have to close.”
Possible solutions include regional products and expansion of the offer, primarily in the segment of non-alcoholic beverages, which are recording rapid growth in market share. Germany is already the largest European market for non-alcoholic beer.
(Vijesti.ba)
