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AUGUST 28, 2008

Acquisition Lifts Heineken's Net

Profit Jumps 35% As Brewer Battles Increase in Costs

Article
Comments

A big acquisition helped lift Heineken NV's first-half net profit 35% from the year-earlier period to €407 million ($596.1 million). But the jump masked the challenges the world's largest brewers are facing: rising commodity prices and transportation costs, as well as falling U.S. beer sales.

The Dutch company faces the same problem that most big food and consumer-goods producers are grappling with: how to pass on rising costs without hurting sales. A 15% increase in transportation, ...