Heineken’s CEO Dolf van den Brink has unexpectedly resigned after six years at the helm of the Dutch brewer, effective May 31. The move comes as the industry struggles to boost beer sales, with Heineken facing significant challenges in recent years, including huge cost inflation and declining sales that have impacted margins and shares.
Van den Brink took over as CEO in June 2020, amidst the COVID-19 pandemic, and has navigated the company through a turbulent period marked by disruptions in key growth markets, such as Nigeria and Vietnam, and a backlash from investors over issues with forward-looking guidance. Despite these challenges, the company set a new strategy in October, covering the years until 2030, which the new CEO will be tasked with executing.
The board will launch a search for a successor to lead the maker of Heineken lager, as well as brands like Tiger and Amstel. Van den Brink has agreed to remain available as an advisor for eight months from June to ensure a smooth transition. He stated that now is the right moment for Heineken to appoint new leadership, as the company has “reached a stage where a transition in leadership will best serve the company in further executing its long-term ambitions.”
The departure of Van den Brink is the latest in a string of consumer company CEOs to leave after a difficult few years for the sector, as consumer finances have come under strain from high costs of living. Brewers have struggled to sell more beer, with hopes of a sales revival repeatedly knocked off course by factors such as bad weather and political uncertainty. Heineken has slipped behind peers in areas like cost efficiency and investor returns.
The new CEO will face significant challenges, including meeting Heineken’s 2030 promises amid global political and economic volatility, as well as addressing worries around the rise of new competitors, the emergence of weight-loss drugs that could impact food and drink sales, and shifting attitudes to drinking, especially among younger people. The company’s shares were 2% lower following the announcement.
Heineken’s 2030 strategy involves refocusing resources on certain brands and markets, as well as delivering on sales, profit, and cost-saving targets. The company has faced unique challenges in recent years, including a pricing dispute with European retailers in 2022 that saw its brands removed from shelves in some stores. As the search for a new CEO begins, the company will look to navigate these challenges and execute its long-term strategy.
