Heineken unveiled a new marketing drive and fresh cost cuts today after 2004 net profit fell by a third.
The net profit missed market expectations, coming in at €537 million compared as forecasts ranged from €486 million to €799 million, and the Dutch brewer predicted a further decline this year
Heineken shares slipped 0.5 per cent in early trade, slightly underperforming the DJ Stoxx Food and Beverages index, which was down 0.1 per cent.
The world's number four brewer by volume and second-biggest beer importer in the United States said earnings were down due to continued sluggish sales in key markets, dollar weakness against the euro and a goodwill charge for an underperforming Brazilian brewery, Cervejarias Kaiser.
Heineken said it would invest €100 million this year in marketing campaigns in the United States and western Europe, while it would seek savings to reduce its cost base in western Europe by at least €50 million by 2007.
Chief Executive Mr Thony Ruys said the marketing spending aimed to "turn up the heat" and boost the company's position in the premium beer market.