By Aimee Look

Heineken forecast a decline in full-year beer volumes and tempered its earnings expectations, after trade uncertainty and weak consumer confidence hurt demand in the U.S and other markets.

The Dutch brewer on Wednesday lowered its volume guidance for the second time this year and said adjusted earnings would come in at the lower end of its previous guidance. The company now expects full-year volumes to decline, having forecast steady volumes in July and growth at the beginning of the year.

The world's second-largest brewer, home to Amstel, Red Stripe and Birra Moretti and its namesake brand, said its revised outlook reflects short-term lower consumer demand and challenging conditions in the third quarter. It cited economic volatility, weak consumer sentiment, inflationary pressures and currency swings, as key reasons for the guidance cut.

"We expect consumer confidence and demand to recover when conditions normalize," Heineken Chief Executive Dolf van den Brink said.

Beer volumes declined 4.3% organically for the third quarter, Heineken said. The company said subdued consumer sentiment and trade uncertainties weighed on its performance in the Americas region, with volume declines most pronounced in the U.S. and Brazil.

U.S. peers Constellation Brands, the U.S. importer of Modelo and Corona, and Molson Coors have in recent weeks flagged challenges in the beer industry. Constellation cut its outlook, citing a pullback from Hispanic customers, while Molson said it would cut about 9% of its Americas workforce due to a tough environment.

Heineken, which recently said it would slash or restructure 400 corporate roles at its Amsterdam headquarters, said it remains confident in delivering planned savings. The company had expected full-year operating profit before exceptional items and amortization to grow 4% to 8% organically, and now sees it at the lower end of that range, it said.

For the third quarter, Heineken reported revenue of 8.71 billion euros ($10.10 billion), a 4.0% year-over-year decrease. The closely-watched metric of adjusted net revenue fell 0.3% organically to 7.33 billion euros.

Adjusted net revenue was forecast to decline 0.8% organically to 7.33 billion euros, consensus estimates compiled by the company showed.

In the U.S., Heineken's adjusted net revenue declined in the low teens, which the company attributed to a tough beer market hitting its core brands.

Investors have been questioning whether volatility in the industry is cyclical or structural, after hits from inflation, regulatory pressure, restrictions on bars and restaurants following the pandemic, Jefferies analysts said in a note.

Heineken has been losing market share, and weak results have less to do with an unfavorable economic backdrop from tariffs and industry pressures, and more to do with the company itself, Morgan Stanley analyst Sarah Simon wrote in a note Tuesday.

The company is expected to give a full update on its five-year strategy on Thursday.

Write to Aimee Look at aimee.look@wsj.com

(END) Dow Jones Newswires

October 22, 2025 02:51 ET (06:51 GMT)

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