Heineken commits to marketing as profit soars

Heineken has committed to continued investment in marketing despite spending less in the first half of the year.

Heineken

The brewer, which owns the Amstel and Strongbow brands, says it will continue to spend on marketing and product innovation, identifying both as “key drivers of the brand equity and overall success”.

The commitment comes as the drinks maker reported net profit increased 20% in the six months ending 30 June to €489m (£429m), with the company citing cost cuts as the main driver behind the profit bump.

Cost savings offset a drop in sales, with beer volumes dipping 6.6%, excluding the affect of acquisitions.

Marketing and sales costs fell by 6.3% due to efficiency savings and lower media rates.

Heineken says the integration of Scottish & Newcastle (S&N), which it bought with Carlsberg for £7.8bn last year, is now complete and contributed to a doubling in revenue in the period.

The company took on most of S&N’s UK assets, including the Foster’s, Strongbow and Bulmers Original brands, after the acquisition.

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