Heineken Ireland boosted sales to €311 million last year in the face of a declining market for beer.
The company, which brews and sells Heineken lager, Murphy's Irish Stout, and a range of other beers, said that turnover in 2004 grew 2 per cent to €311 million.
However, the Cork-based operation estimated that the overall beer market declined by 6.1 per cent last year in the face of competition from other products.
Heineken said in a statement yesterday that, over the last five years, the Irish beer market has suffered a total decline of 13 per cent, which is equivalent to 1.4 million kegs.
The Netherlands-owned company calculated the total value of the Irish drinks market at just over €5 billion, with beer accounting for €2.8 billion of that figure.
Corporate affairs manager Mr Declan Farmer said that stout's share of the market was also falling. He pointed out that five years ago, the Irish beer market was divided equally between stouts and lagers, but the latter now have about 52 per cent of volume while the former holds just 40 per cent.
Commenting on the results, Heineken Ireland managing director Mr Nico Vervelde sai: "the drinks industry is going through a particularly difficult time with changing consumer needs and demands".
Despite the market pressures, Heineken said that it had grown volume sales last year by 0.5 per cent, while its share of the Irish market had increased slightly to 19.4 per cent from 19 per cent. The increase came largely on the back of the introduction of new products.
Heineken itself retained its position as the number one selling lager, with 39 per cent of that market. Murphy's remained in the number two slot in the stout market, with 10 per cent.
At group level a €99 million exchange rate hit, largely due to the weak dollar, left reported net profits at €791 million, compared to €809 million in 2003.
However, the company said that excluding this, write-offs and exceptional items, underlying profit growth was 5 per cent. Heineken said that it experienced growth in all its main markets.
