23 Jun (Reuters) – Heineken appointed Rafael Oliveira as its new chief executive and chairman of the board of directors on Tuesday, marking the first time that the Dutch brewer has appointed someone from outside to the leadership role, at a time when companies in the alcoholic beverage sector are seeking to boost sales through changes in leadership.
Oliveira has been CEO of JDE Peet’s, a Dutch coffee and tea manufacturer, since 2024. He will join Heineken, the world’s second largest brewer, for a period of four years from October 1, the company said, adding that it expects him to accelerate the strategy already defined for 2030.
“After a rigorous global search, the supervisory board unanimously selected Rafa for his unique combination of strategic vision, operational experience and financial acumen,” Heineken said.
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Heineken shares rose about 3%, outperforming the broader market and reaching their highest level since March.
The uncertainty about who would lead the maker of the Tiger and Sol brands, in addition to its namesake lager beer, weighed on the company’s shares.
Former CEO Dolf van den Brink, who led Heineken for six years, announced his unexpected resignation in January, and the company has been without a chief executive since early June.
NEW CEO NEEDS TO INJECT RENEWED ENERGY
Van den Brink’s departure was one of several in the consumer goods sector over the past year, including at major beverage competitors such as Diageo and Remy Cointreau, where hiring committees and investors have turned to external candidates in hopes they can inject renewed energy.
Oliveira will be tasked with leading Heineken on a plan to cut 6,000 jobs, revive sales volumes despite forecasted falling global beer demand and match investor returns from rival Anheuser-Busch InBev.
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The challenge is even greater, as the entire sector faces the skyrocketing cost of living, changes in alcohol consumption habits and concerns about the effects of alcohol on health, in addition to emerging threats, such as weight loss medications, which can affect the consumption of alcoholic beverages.
In a statement, Oliveira said Heineken’s 2030 strategy, under which the brewer promised to achieve greater growth with fewer resources, was a solid platform for the future.
“I am confident that we will accelerate growth, drive productivity and prepare Heineken for the future, winning the hearts of consumers around the world,” he said.
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Heineken reported that Oliveira has two decades of experience in both developed and emerging markets, as well as a track record of implementing focused strategies and improving performance.
Prior to joining JDE Peet’s, he served as president of international markets at Kraft Heinz.
SOLID EXPERIENCE IN CONSUMER GOODS, NOT ALCOHOLIC DRINKS
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Analysts said that in addition to a solid background in consumer goods, he also had prior experience in capital markets, which gives him an advantage as he seeks to generate returns for some of Heineken’s dissatisfied investors.
In just 17 months at JDE Peet’s, Oliveira “has demonstrated a clear ability to diagnose and redefine strategies quickly,” said Laurence Whyatt, an analyst at Barclays.
Oliveira, however, lacks experience in dealing with the specific dynamics of the beer and alcoholic beverages sector, which, according to some analysts, represents a risk.
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“As an outsider to the beer industry and Heineken, he will have a lot to prove,” ING analysts wrote in a note.
(Reporting by Gianluca Lo Nostro in Gdansk and Emma Rumney in London)
