Amstel owner Heineken takes R10bn hit in SA amid volume declines
Dutch brewing giant Heineken has written down its SA business by €491 million , or 16%, under pressure from rising interest rates and volume declines that have forced it to pick up its promotional activity.
The world's second-largest brewer only completed its tie-up of its local operations with Distell in April 2022, saying on Wednesday the lower current valuation of the business, relative to the time of the announcement of the acquisition in November 2021, predominantly reflects the increase in the weighted average cost of capital.
"Inflationary pressures and higher brand support levels to address a more challenging competitive environment also played a part," it added.South Africans need to be in the know if we want to create a prosperous future. News24 has kept the country informed for 25 years, and we're about to enter a new chapter of fearless journalism. Join our free subscription trial to unlock this story and a world of news aimed to inform, empower, and inspire.
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