The demand for Heineken beer in Africa and its biggest market, Nigeria, has decreased significantly, lowering the company’s growth expectation for Africa.
According to Bloomberg, Dutch brewer Heineken has reported dwindling revenues in its region Africa and Middle East of minus 1.1%. This has been attributed to reduced demand in Nigeria, the company's largest market in Africa.
Consumers in the country have cut down on beer spending amid a grimacing economy now worsened by falling oil prices.
Aside Africa, Central and Eastern Europe also witnessed reduced demand for Heineken products. On the other hand, increasing beer volumes were recorded in the Asia-Pacific region, especially in China, Cambodia, and Vietnam. However, the biggest gains came from the Americas, led by Mexico, Brazil, and the U.S.
Although Heineken's overall revenue has increased by 2 percent, the figure fell short of the 2.3 percent median estimate of 13 analysts surveyed by Bloomberg. However, the company is optimistic about generating more sales and profit in 2015, despite volatility in some of its most profitable markets.