Heineken names first outsider CEO to lead turnaround amid sales slump

[LONDON] Heineken appointed Rafael Oliveira chief executive officer, as the Dutch brewer breaks with habit by hiring an outsider to try to reverse a slump in demand.

Oliveira will step down as CEO of coffee and tea company JDE Peet’s to take the role at Heineken on Oct 1, according to a statement on Tuesday (Jun 23). It follows the exit of former CEO Dolf van den Brink at the end of May, after six years at the helm and more than 28 years at Heineken overall.

The family-controlled company has never previously appointed an outsider as CEO. The shakeup comes with Heineken facing lacklustre sales of its namesake beer and other brands, as health concerns over alcohol hit demand particularly among younger drinkers and as cash-strapped consumers rein in spending.

Heineken is in the middle of a cost-cutting drive which includes shedding about 7 per cent of its global workforce. In April, Heineken reported beer volumes fell in the first quarter as demand declined in crucial markets in Europe and the Americas.

This was another quarter of decline for the Dutch brewer, which also makes the Tecate and Amstel brands. Its performance is lagging that of industry rivals Anheuser-Busch and Carlsberg. Shares of Heineken were down 5.4 per cent in the past 12 months through Monday’s close.

Heineken has previously said it is optimistic about beer demand in emerging markets, such as Vietnam and South Africa, where demographics and rising incomes are driving sales.

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Prior to JDE Peet’s, Oliveira spent a decade at the Kraft Heinz and rose to the role of president of international markets, where he oversaw a more than US$7 billion portfolio across Europe, Africa, Asia-Pacific and Latin America.

Separately Keurig Dr Pepper, which bought JDE Peet’s last year, said it has kicked off a search for a new CEO for its coffee unit. Pamela Patsley, chairman of KDP’s board and chairman of its nominating and governance committee, will lead the search. BLOOMBERG