Tesco has cut the number of Heineken brands on its shelves in half as it continues to capitalise on the boom in craft beer.
According to MCA’s sister title, The Grocer, the retailer is now stocking just 22 products from Heineken’s beer and cider portfolio, down from 53 at the beginning of the year, following a spate of de-listings in February.
A number of Heineken beer brands - including Amstel, Birra Moretti, Sol, Tiger Beer and Kingfisher - have been removed entirely from Tesco shelves, while many others have seen their ranges cut to just one or two SKUs.
Tesco has stopped stocking multipacks of Heineken lager bottles, and the larger multipacks of cans, reducing its offer to just two SKUs: the 650ml bottle and six-pack of 330ml cans.
It has also ditched Kronenbourg bottles and larger multipacks, with only four-packs of 440ml cans now available.
Fosters, John Smiths and Desperados have also been affected, while the cuts have also extended to cider brands such as Bulmers and Old Mout.
The delistings come as Tesco nears completion of the second phase of Tesco’s ‘Project Reset’ programme, which started last summer. Unlike the previous reset, this review was convenience-focused, and saw Tesco increase the number of craft beers and lagers in its 402 Tesco Express stores from two to 30 brews before Christmas, while ripping out conventional and mainstream variants. And with sales performing “incredibly well” according to a Tesco source, following the changes, the same thinking is now being applied to its larger stores as the BWS phase two reset is completed.
The Grocer indicates that the review of the Heineken range may also be connected to price negotiations. Tesco embarked on the cull a month after Heineken warned it would increase wholesale prices for the on-trade by an average of 6p a pint across its brands, citing rising costs that it was no longer able to absorb.
A Heineken spokesman said the brewer wouldn’t comment on commercial arrangements with its customers. “Shoppers will continue to find a broad range of our fantastic beer and cider brands in Tesco,” he said.
Tesco insisted the move was part of its regular range reviews to ensure its customer’s needs were met. “We continue to offer customers a great range of beer, lager and cider,” said a Tesco spokeswoman.
