Heineken loses fizz

HEINEKEN has warned profit margins will take a hit this year due the knock- on effect of expanding its Brazilian business.

The Dutch brewer’s warning comes after it bought Japanese brewer Kirin’s lossmaking Brazilian business last year in a bid to become the number two player in the country. According to results, operating margins have already declined from 17.5pc to 16.3pc during the first half of its financial year.

But sales jumped 5.6pc to £10.7bn as it sold more beer than expected, particularly in Vietnam and Mexico – its most profitable markets.