Heineken announced Wednesday the company will be cutting thousands of jobs due to the pandemic and plans to “move beyond beer.”
“The impact of the pandemic on our business was amplified by our on-trade [pubs, bars and restaurants] and geographic exposure,” CEO Dolf van den Brink shared in an earnings statement. (RELATED: Virginia Brewery Offers $20K A Year For Gig Hiking And Drinking Beer)
— The Hill (@thehill) February 10, 2021
The Dutch beer group revealed that the pandemic resulted in a dramatic drop in beer sales, nearly 17 percent to $28.8 billion, which led to a net loss of $248 million, the Associated Press reported. Last year the company had announced a triumphant $2.7 billion profit.
The brewer of Moretti and Amstel said it expects a reduction of nearly 10 percent of its worldwide workforce in hopes of saving the company $2.4 billion over the next two years. The move is a part of an overhaul strategy that will include scaling down the number of products manufactured.
Heineken hopes its operating profit margins will rise to 17 percent by 2023 with these various changes.
The CEO, who took charge in June last year, said the company’s strategic review would include looking at making non-alcoholic beer available worldwide after sales of Heineken 0.0 and Maltina in Nigeria showed “much potential for growth.” Hard seltzers might also be a possibility for the company going forward.