Red Stripe volume sales climb
Desnoes & Geddes Limited, which operates as Red Stripe Jamaica, recorded double-digit growth in the volumes of beer sold in 2016, according to reports from the brewery's Dutch owner.
Red Stripe Jamaica's addition to the Heineken group helped to boost regional revenues, which increased by about two per cent, equating to €104 million (or about $14.1 billion in Jamaican currency), according to Heineken's financial results.
The Jamaican beer was one of a clutch of international brands which performed better than average.
Jamaica falls within Heineken's Americas division, which made €5.2 billion in revenues, up 7 per cent year on year. Net profit rose 23 per cent to €1 billion.
Heineken CEO Jean-Francois van Boxmeer said in his statement issued with the financial report that revenue management initiatives and positive brand mix both contributed to top line growth in the Americas division, but he also noted that currency movements impacted revenue by 8 per cent and "consolidation added 2 per cent to revenues mainly due to Jamaica".
Internationally, Heineken made €1.5 billion in net profit on €20.79 billion of revenue for its full year ending December 2016. Profit rose nearly 19 per cent for the year.
"The international brand portfolio, which includes brands complementary to Heineken and with high potential to travel across geographies, outperformed. Volume was up double digit for Affligem, Sol Premium, Lagunitas, Red Stripe, Tecate and Tiger brands," stated Heineken in its report.
"We delivered strong results in 2016, with clear outperformance of our premium brand portfolio led by Heineken, and sustained momentum from our innovation agenda," said Boxmeer in the statements accompanying the financials. "Performance in key European markets was good and results in Vietnam and Mexico were strong. In Africa, Middle East & Eastern Europe market conditions remained tough, most notably in Nigeria, DRC and Russia."
Boxmeer expects a favourable 2017 with widening profit margins, excluding major unforeseen macro economic and political developments as well as the impact of the proposed acquisitions in Brazil and in the United Kingdom.
D&G/Red Stripe's promised response to queries about its performance were not forthcoming up to press time.
Heineken acquired majority ownership of Red Stripe Jamaica from Diageo Plc in October 2015. Nearly a year later, in September 2016, the Jamaican brewery resumed the distribution of beer directly from Kingston to the United States in a rollback of an outsourcing arrangement under which beer for that market was bottled overseas. Red Stripe officials have said the change was in the works before Heineken took control of the company.