Heineken suspends Egyptian operations
on 01/02/11 at 9:06 amIndustry
Dutch brewer Heineken halted its operations in Egypt due to continued conflict and anti-government protests in the country.
The company, which employs 2,400 people in the region has evacuated its 25 expatriate employees on private planes and asked its local employees to stay home.
It wasn’t clear when production will be resumed or what the cost will be to the brewer, Anoeska Vanleeuwen, a spokesman for Heineken told BeverageDaily.com.
SNS Securities analyst Richard Withagen said the country is Heineken’s most important market in North Africa, with estimated annual sales of more than €160m ($218m).
However, the impact on the group as a whole is not expected to be too significant.
“Regional volumes and profitability will suffer from the situation, but the contribution to the group is limited, also implying a limited impact on Heineken’s bottom-line earnings,” SNS added in a research note.