Heineken CEO steps down as slumping beer sales hurt brewer

Heineken warned in October that annual profit would be lower than expected due to weaker growth in Europe and the Americas

Heineken NV Chief Executive Officer Dolf van den Brink is stepping down months after the brewer warned on profit over falling beer sales.

Van den Brink, 52, will stand down on May 31 after six years at the helm of Heineken, and more than 28 years at the Dutch company in total, according to a statement Monday. The brewer will start a search for his successor, and Van den Brink will stay on to advise Heineken until next year, it said

Shares of Heineken fell as much as 3.2% in early trading in Amsterdam, the most since July on an intraday basis.

Heineken warned in October that annual profit would be lower than expected due to weaker growth in Europe and the Americas, a problem that has affected the global brewing industry for some time as consumer drinking trends shift.

The brewer said it expected adjusted operating profit growth this fiscal year to come in at the lower end of its previously forecast range of 4% to 8%. Heineken also said it expected volumes to fall modestly, too, despite previously saying they would remain stable.

Heineken, which alongside its eponymous brand also makes Tecate and Amstel, said at a capital markets day in October it planned to focus its growth efforts on 17 key markets and cut investment to some of its brands.

“We do not anticipate a major change in strategy,” Jefferies analysts including Ed Mundy said in a note. “The hard yards on strategic work are done, now it is the right time for leadership transition to further execute the strategy.”