2024-07-16 12:41:42 ET
Summary
- Declining Alcohol Consumption: Heineken faces challenges due to a 20% decline in alcohol consumption among Gen Z, who drink less than Millennials, contributing to overall declining beer sales volumes.
- Shift to Marijuana and Rising Prices: Increasing marijuana use among adults and the rising cost of alcohol have further impacted Heineken's market.
- Strategic Marketing and Sponsorships: Heineken leverages strategic marketing like sports event sponsorships and brewery tours to maintain brand awareness and market presence amid regulatory challenges.
- Despite headwinds, the beer industry has positive growth drivers like e-commerce, craft beer, and non-alcoholic beer sales, supporting modest revenue growth forecasts.
Thesis
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Heineken: Declining Consumption Habits Is Not Good News