Okay, I'll say it -- 10% of their employees is scary. I just heard that we can expect six-pack prices, here in the U.S., to go up by at least $1 per -- maybe more. Strange days indeed.
85,000 employee is a very large company. Would not have guessed that. I'm guessing all large alcohol companies need to look at their profolio of products. There is just so many varieties. I think certainly more than needed in many cases. Complexity adds to manufacturing and other costs. Streamlining not only employee base but products down to what is most profitable is understandable if revenue falling
Yes, in general. But I only heard it from some sources in this area, so who knows for sure? And I forgot to add previously, yes -- the blame falls on the pandemic. Again.
@Todd -- I'm presuming the BA team is monitoring the possibility of this sort of "business move" becoming its own pandemic, if sorts?
Heineken still made over 1 bln net rev. COVID seems like to be the perfect excuse for the new ceo to cut jobs (20%) at the head office.
We don't have access to this data, but I know that the Brewers Association gets state reports (and polls) from its members here in the US (not sure if it includes layoffs). That said, and based on what I've heard, pandemic-related layoffs in the beer industry over the last year were significant.
Even if they have a 40% increase on their prices they will still be a better price/value than the majority of the hyped crap I see here.
Hopefully this won't impact Lagunitas. I'd also expect Heineken to have done well during pandemic based on the increase in store sales where they have ubiquitous distribution. Guess they have more on premise presence than I thought?
Per capita Hawaii is the largest consumer of Heineken in the US so if this affects prices or supplies then this would be a good opportunity for another brewer to boost their sales here. There are a lot of big volume beers that I read about on this site that haven't made it here such as Yuengling so as they expand westward they should keep going until they get here. A lot of thirsty people out here.
I don’t buy their products, but it’s hard to envision superior growth with less employees. What he means is “ I need to please my major stockholders”. I get that, it’s his job to do so, even though it sucks, I’m sure he knows that.
Operating profit margin was 12.3% for 2020 vs 16.8% for 2019. That's a big drop. Now its covid related no doubt but people still drank in 2020. Being publicly traded is a tough gig because investors just want to see "up" . Doesn't matter the circumstances. Of course the executives could go with smaller comoensation packages but thats heresy
It’s a business, could be beer, could be anything, a commodity is just that, only looking at the upside on their money invested. A 4% drop on billions is a huge number.
It’s already happening. Two sizable breweries in Illinois have raised their prices in the last 2 months
I think you underestimate their presence at big events, be it sports, concerts, dance events etc. that have been shut down all over Europe at least, if not world wide. Bars and restaurants being closed has a bigger impact than drinking at home can cover. Also, at least her in The Netherlands, the puchase prise for bars etc. of tap beer is higher per liter than bottles/cans in stores.
I don't think many of us have really appreciated how much we've given up over the last 12 months. The proposed " return to normalcy " will never be what we had 24 months ago. It will be what up to each of us to build the culture we want going forward
Well said. When people are ready to stop complying it will end and I’ll be waiting eagerly for that day.
New CEO has to earn his money no doubt it is connected to performance. We have seen this over and over.
