By Adam Whittaker
Heineken said Chief Executive Dolf van den Brink plans to step down at the end of May after almost six years at the helm, leaving the world's second-largest brewer searching for a new leader at a challenging time.
His departure comes as the Dutch brewer struggles with weakening demand and changing consumer preferences. Beer sales are falling and the company cut guidance twice last year in response to weak consumer sentiment.
The company, home to Amstel, Red Stripe and Birra Moretti and its namesake brand, said Monday that Van den Brink would step down May 31 and that it would begin the process to appoint his successor. Heineken said the executive decided to step down in consultation with the supervisory board.
Shares fell 2% in European morning trading.
Van den Brink is a Heineken veteran who joined as a management trainee in 1998 and climbed the corporate ladder to take the top role in mid-2020, just as the company was grappling with the Covid-19 pandemic and restrictions that left bars and restaurants closed for weeks in several countries.
During his tenure, Van den Brink sought to rein in costs--including through a plan to cut 8,000 jobs launched in 2021--and push the brewer into alcohol-free products at a time many consumers are cutting back on booze spending. But Heineken shares have been under pressure lately as the company struggled to revive its top-line growth.
Alongside its third-quarter results in October, Heineken cut its volume guidance for the second time in the year, and said adjusted earnings would come in at the lower end of its previous guidance.
It expects full-year volumes to decline, having forecast steady volumes in July and growth at the beginning of the year.
Heineken has struggled with sales in the Americas. It cited subdued consumer sentiment and trade uncertainties as dragging on its performance. Inflationary pressures are also hurting sales and profits.
A string of poor results and shrinking market share had left some analysts questioning whether Heineken's problems weren't caused solely by the challenging market conditions.
His departure isn't a surprise given Heineken has significantly underperformed versus peers during his tenure, RBC Capital Markets analysts wrote in a note to clients.
Van den Brink's departure comes after Heineken held an event with investors in October, at which the executive spoke about the company's plans to continue with the next phase of its strategy. It is aiming to extend its nonalcoholic product line to meet changing consumer tastes, while seeking to cut costs. Last year, it outlined a restructuring that will affect 400 corporate roles in its Amsterdam headquarters.
"The next phase will focus on bringing this strategy to life through disciplined execution of our strategic growth ambitions," Heineken Supervisory Board Chairman Peter Wennink said. "With this in mind, the Supervisory Board agrees this is the right moment to start the succession process to secure strong leadership for the future."
Van den Brink will remain available in an advisory capacity for an eight-month period from June 1, the company said.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
01-12-26 0420ET
